Nov. 10, 2021

Scarcity: The Hallmark Of Central Planning.

A free and open market is a wonder to behold. Producing abundance.

The Free market, like the one developed throughout the 20th century in America, was a marvel of the ages.

It produced goods at a rate that could only be dreamed of by our parents and grandparents. New technologies, new appliances, automobiles, electronics.

All were presented at our doorstep, if we liked, by services like Amazon which made shopping from home quick and convenient.

The power and scope of this dynamic were recognized by the founder of economics, Adam Smith over 200 years ago. So profound was this ability of a free economy to deliver life's necessities to a country's population that he called this force the Invisible Hand. By which he meant God's grace to free men.

The Penultimate example of the free market system was the United States of America. A place that grew wealthy through the abundance produced by independent businesses, factories, and services just looking to do one thing: serve their customers.

And customers were free to choose, free to shop and buy those goods which suited them.

As economist Milton Friedman wrote: Free To Choose, it was at the heart and soul of our way of life.

Today, much of that is gone. Certainly, our freedom has eroded in a way most of us never thought possible. And with that loss of freedom, I fear, will come a corresponding loss of our way of life.

You see Shortage is the Hall Mark of a Centrally Planned Economy. And since March of last year, the United States has transitioned to one of the most closely controlled, centrally planned economies on earth.

The catalyst for all this was a common virus, the Covid-19 Virus, released after a certain gain of function properties were instilled in, from apparently a Lab in Wuhan, China.

The transmission of this disease was enough to send the various governments in the US into the biggest transformation in the nation's history.

When all is said and done, I believe this transition to a new America, will be greater than the industrial transformation that country used to do battle in World War 2. After all, that was merely a transition of primarily the nation's factories. This is a transition of our very form of government.

From roughly March of 2020 the various governors, mayors, and Federal Agencies took it upon themselves to control the lives of Americans.

It began with a 2-week self-quarantine to “flatten the curve.” Whose objective was to reduce the number of infected so as not to overwhelm the hospitals. Something that, as it turned out, never really happened.

Self-quarantine was followed by the economic lockdown. Where “non-essential” businesses were forced to close. Most often permanently.

The economic lockdown was followed by mandatory work at home status for millions.

Mandatory work at home was followed by mandatory vaccination... And you can see how this has all progressed.

Each step along the way has been for greater and greater control. The noose tightens around the necks of a formerly free populace.

But that has all been aimed at the general population, the average citizen. The consumer in our economy.

This assertive control is far from over.

This Winter, in particular, I believe that we will begin to see the real control of the productive side of the economy.

I realized this as I was reading the Energy Information Agency's report on this Winter's Fuel's Outlook. The EIA is currently predicting that we will have a third less Heating Oil and other distillates this winter than last.

In other words, it's almost a certainty that some people in this country won't have enough fuel to heat their homes.

Shortage.

How can this be? Answer Central Planning. A President, who on his very first day in office canceled the Keystone Pipeline. A Pipeline originating in Canada would have provided 830,000 barrels of oil this winter to American's to heat their homes.

Currently, he is threatening to cancel another pipeline, Enbridge number 5 currently providing 50% of the heating needs for the people in upper Michigan.

Central Planning.

But it doesn't stop there. Those cargo ships off-shore in California are unable to be unloaded because of a combination of increased environmental regulation, limiting the number of trucks that can off-load them, and tighter labor markets which caused workers to stay at home.

Central Planning.

There are reports all over the nation's breadbasket that farmers are required to plow under some of their crops to maintain price levels. And further, that farm exports are being promoted over domestic consumption.

More central planning.

We could go on and on.

But perhaps the most vivid memory for most of us will be those empty shelves are our local grocery stores. Remember when there were no paper goods. Toilet Paper, Paper towels, and paper plates. All gone.

And yes, there was hoarding on the part of many, which no doubt exacerbated the problem. But the time it took to re-stock was almost entirely attributable to the restrictions placed on individual workers, truckers, and supplies. As they were restrained from moving goods as quickly as they would have liked.

All Central Planning.

It's always been this way. Shortages are the hallmark of the control economies.

From the famines of Mao's Cultural Revolution to the starvation of Stalin's Great Purge. To Venezuela's economic crisis. The story has been the same. Whenever a group of far-away bureaucrats takes away the economic freedoms of a population, they produce shortages.

We're beginning to see that here in this new American.