03 November 2012

A Thought or two on Socialistic Crypto-Command Economics

A French commenter on Ambrose Evans-Pritchard’s article noting how regrettable Hollande’s handling of the French economy describes the mistakes Socialists make over and over to a tee.
Canute thought he commanded the waves; French socialists think they can command the economy as if it were a performing seal. As usual, that theory is proving defective in practice.
True dat, but the crime is how they got there. Once the government spends 55% of GDP, and channels the use of yet more of it, it’s capacity to do the right things, once they learn what they are, are severely constrained. In other words, they overdid the lovin’, to the point where they are walking funny, and end up with a new form of ED which will remain uncurable for generations.
Hollande and his schoolteacher-turned-prime minister Ayrault have simply dusted off the playbook of 19th century economic theory that was such a disaster for Mitterrand and his schoolteacher-turned-prime minister Mauroy.

(It's the tragedy of French socialism that it is dominated by schoolteachers who've never read anyone further to the Right than Marx; also, of course, a tragedy for the nation.)
Why the allusions to personal violation? It’s brought to mind by the thought of one of France’s great Socialist scions taking his liberty with the ideas he and the left were espousing, despite the obvious harm it does to those it’s meant to help.
A Parisian pundit remarked the other day that the Parti socialiste spent 10 years in opposition jeering at conservative governments but hadn't given a moment's thought to what it would do when it regained power, other than look after its own.

This turns out to be true.
So he really is “M. Normale”. Normal for a Socialist in politics, that is, and not unlike Barack Obama’s attempts at a short-hand interventionist economic model as well, exemplified by a the doomed notion of being a Green Venture Capital organ. It eroded into the social failings of his branch of the International Socialist Guild: into cronyism.

Here the American left were hoping for a rock star, they got a featherbedding city councilman trying economic stunts that leftist academia have touted in its’ echo-chamber for decades. In France they sought someone normal to refashion the indulgent image of Socialism, and they got a pedantic and awkward city councilman trying economic stunts that leftist academia have touted in its’ echo-chamber for decades.

I suppose it takes teachers, living largely as they do in a simplified, closed-loop economic system themselves, with its’ “single-payer” simplification of everything, to try to apply this to the rest of society. The problem is that the private sector doesn’t have anyone else’s pocket to pick to make up the difference between income and payroll.

The outcome, surprising no-one, is failure.


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