Tweet [1]
… is from page 175 of Arnold Kling’s wonderful new book, Specialization and Trade: A Re-introduction to Economics [2]:
The main point here is that better economic outcomes arise when patterns of sustainable specialization and trade are formed. These patterns do not come about as a result of tinkering undertaken by the Federal Reserve or by deficit spending undertaken by Congress. It requires the creative, decentralized, trial-and-error efforts of thousands of entrepreneurs and millions of individuals seeking the best way to use their talents. Probably the best thing that the government can do to encourage new forms of specialization is to rethink existing policies that restrict competition, discourage innovation, and retard mobility.
Yes.
Yet America’s new president-elect seems intent on doubling-down on existing policies that restrict competition, discourage innovation, and retard mobility. He, his aides, and his fans will point to the existing businesses and jobs that they “save” (using a toxic combination of force and other-people’s money) and boast of their brilliant achievements [3]. But they will remain blind (or callously indifferent) to the businesses and jobs that they destroy in the process, especially the ones that would, but now never will, emerge in the absence of their ignorant interventions.