Actually she does
us a favor in showing how government can build an infrastructure -- which she
says businesses need in order to exist – that no one uses. This is the reverse
of Frederic Bastiat’s analysis of the broken window fallacy in which he refutes
the claim that destroying things actually is good because it creates work for
those who can rebuild what was destroyed. See more here: http://en.wikipedia.org/wiki/Parable_of_the_broken_window.
My point is the opposite: The Chinese government built entire cities for which
there was no need. As a result the resources spent on these projects are not
available for other projects for which there might be a legitimate need. As Bastiat
noted we focus on what can be seen – the brand spanking new but empty city –
and not what can’t be seen – the lost opportunities to meet the real needs and
wants of people as well as the wasted resources.
This brings me back
to Warren’s and Obama’s rant about businesses being unable to do their thing
without a strong infrastructure. What strikes me is the indignation both of
them exuded. Maybe I missed something but I don’t recall seeing business owners
running around claiming they built their enterprises without any assistance. To
me both Warren and Obama set up a straw man to advance their case for higher
taxes and reveal their deep seated antipathy for business and capitalism.
In China we have
examples in these ghost cities of infrastructure being provided that no one is willing
or able to use. More importantly it reveals what happens in a country that with
a government that doesn’t recognize or protect individual rights. It says a lot
that Warren proudly holds up China as an example to which we’re supposed to
emulate.
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