Guest Post by John Stossel
Congress passed and the president signed a $2 trillion “stimulus” bill.
“Not enough!” shrieked politicians. They said the government must do more.
They demanded President Donald Trump reactivate the Defense Production Act, a 1950 law that lets government force companies to make things.
Trump hesitated.
That upset lovers of big dictatorial government. They demanded the president order companies to make respirators, masks and other desperately needed medical equipment.
CNN’s Alisyn Camerota joined the media mob asking “What’s the holdup!?” Then a White House press reporter confronted Trump at the White House, asking, “Why not use it now?”
The president surprised me by responding: “We’re a country not based on nationalizing our business. Call a person over in Venezuela, ask them, ‘how did nationalization of their businesses work out?’ Not too well.”
No, it didn’t.
Venezuela was once one of the richest countries in Latin America. Now it’s one of the poorest.
That’s because government dictating production leads to less production.
Although Venezuela has more oil in the ground than any other country, once the socialists nationalized the oil industry, production declined. Today, Venezuelans struggle to buy gasoline.
When government orders companies to do things, companies don’t innovate. They’re less able to adjust quickly to market demand. That’s the topic of my new video.
Today, hospitals need more ventilators. But the government doesn’t need to order companies to make more. The private sector is already on it.
Automakers slowed car production and are gearing up their factories to produce ventilators. Other businesses are, too. That’s what businesses do when conditions change; they pivot.
Distillers that once made gin and vodka now make hand sanitizer. The federal government had to waive regulations to allow them to sell it.
Some give it away. It’s not just charity; it’s “goodwill.” They hope customers will remember the good deed, and that’ll lead to profit in the future.
The best catalyst to spur production is simple pursuit of profit. It’s what gets companies to produce new things instantly. Unlike governments, businesses have no guaranteed income. To survive, let alone grow, they must constantly innovate to make sure more money comes in than goes out.
The socialists call that “greed.”
Without question, some tycoons are greedy. They pursue profit to the point that they have more money than they will ever need.
That’s fine. That greed for success drives them to get me what I need.
I assume it’s what inspired Ford to start using 3D printers to make face masks.
The profit motive delivers the goods. Higher prices tell companies what products are most urgently needed.
When our government failed to produce enough coronavirus test kits, private companies filled the gap. Some offered convenient tests you could use at home.
But the government didn’t like it, saying the test hadn’t been approved. The tests were withdrawn.
Government’s rules often make it harder for private actors to help people. In a crisis, America’s unsung heroes are people who overcome that.
Many truck drivers wanted to work overtime to help, but federal law said they must not work more than 11 hours a day. Finally, the government suspended the regulation.
We ought to suspend a lot of these rules permanently. Allow Americans to make our own choices about when we want to work.
In this crisis, businesses are trying all sorts of new things. Supermarkets started offering special “senior hours” so older people can safely get supplies we need.
Musicians are livestreaming concerts.
Restaurants are switching to takeout and delivery.
People have lost jobs, but if businesses are free to adapt, they’ll create many new jobs.
Because demand for deliveries has increased. Amazon is hiring 100,000 new workers. Walmart is hiring 150,000.
The free market adjusts. We don’t need “production acts” to tell us what to do.
John Stossel is author of “Give Me a Break: How I Exposed Hucksters, Cheats, and Scam Artists and Became the Scourge of the Liberal Media.” For other Creators Syndicate writers and cartoonists, visit www.creators.com.
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This is why I think liberalism, especially the progressive left version here in the US that loves socialism, is a mental problem akin to OCD. The free market isn’t efficient or organized enough for them so it has to be regulated into oblivion, and when that fails, nationalized and managed into unprofitability.
Corrupt CEOs magnify the problem. Look at Glass-Steagall, it was repealed and the f-cking investment banks are allowed to speculate on margin with near impunity. When you see this you know business and government is a racket loaded with hypocrites.
“is a mental problem”
it’s a moral problem. mentally they’re functioning normally, it’s just that their focus is on themselves exclusively.
People should never discount the existence of intentional evil. There’s too much of it around to deny but recognizing it seems to be a problem.
Today the Colorado AG ordered all Hobby Lobby stores in the state to close down since he feels they are “non-essential” businesses. He is a democrat.
Meanwhile, Colorado’s faggot governor continues to allow pot shops to remain open because they are “essential retail businesses”. Take a guess as to his political affiliation.
“Take a guess as to his political affiliation.”
or his investment portfolio.
“The socialists call that ‘greed.’”
under the influence of judaism or a for-export version of judaism such as communism, these people see themselves as the humans, and everyone else as not. they see everything on earth – including the rest of us – as their property. they see us possessing anything as theft from them. they’re not angry that you have a dollar more than they do. they’re angry that you have that dollar at all. that’s their dollar. you’re not supposed to have it, they are.
I like the article, and for a change, Stossel gets it right, but why a picture of the President, two clowns in camo, a couple of other losers in suits, and fire trucks shown along with the title “The Unsung Heroes?” Those folks are the exactly opposite.
and the real unsung heros are … well, like you. yes?
Were already a socialist country in many ways.
well, socialism makes no sense unless it’s national socialism – and that’s not what we have. free-form socialism is just a “free stuff!” circus – and that is what we have.
Walmart!!!! Amazon!!! Go team go!!! Lick those oligarch nuts!!! Fucking dweeb.
Lick their ball sweat dammit. It’s all so fucking coincidental. Now, get in line at your local market basket plebe mother fucker.