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   - Fed Up <#1234c16ab07e0e6e_1>
   - Power Corrupts — and Incites Hypocrisy <#1234c16ab07e0e6e_2>
   - Laissez Faire – Not! <#1234c16ab07e0e6e_3>
   - Let’s Not Go Postal <#1234c16ab07e0e6e_4>

  Fed Up <http://cafehayek.com/2009/08/fed-up.html>

Posted: 23 Aug 2009 02:16 PM PDT

Did the Federal Reserve Bank save the economy?  “No!” says George
Selgin in this
interview with the *Atlanta
Journal-Constitution*<http://www.ajc.com/business/fed-didnt-save-the-121009.html>.
Here’s the nutgraf:

Selgin believes the Fed, after helping fuel the housing bubble, has morphed
from central banker into central planning agency with a corporate welfare
department.


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<http://feeds.feedburner.com/~ff/CafeHayek?a=2RQmcdYVqbY:p5AaZ0krge0:gIN9vFwOqvQ>

Power Corrupts — and Incites
Hypocrisy<http://cafehayek.com/2009/08/power-corrupts-and-incites-hypocrisy.html>

Posted: 23 Aug 2009 01:35 PM PDT

Here’s a letter that I sent today to the *Washington Post*:

Reviewing Adrian Goldsworthy’s book on the fall of ancient Rome, Diana
Preston notes that “Goldsworthy completed his book before the real extent of
the world’s current financial crisis was known, but he quotes a complaint by
the Emperor Diocletian that seems especially relevant and shows that human
nature may not have changed much since Roman times: ‘There burns a raging
greed, which hastens to its own growth and increase without respect for
human kind.’  Goldsworthy sensibly concludes there’s nothing to suggest the
United States must inevitably decline, but that it’s up to those at the top
– our 21st-century emperors – to ensure it doesn’t” (”Rome Wasn’t Destroyed
in a Day 
Either<http://www.washingtonpost.com/wp-dyn/content/article/2009/08/21/AR2009082101112.html>,”
August 23).

How ironic for Preston to point to Goldsworthy’s quotation of Diocletian – a
rapacious hypocrite whose reign serves as an ideal lesson in why bestowing
power and glory on ‘leaders’ is a fool’s game.  According to the Roman
philosopher Lactantius, under Diocletian “tax collectors began to outnumber
taxpayers, and, after exorbitant taxation sapped their initiative, farmers
abandoned their farms and plowed fields grew up into woods.  In a policy of
terrorization the provinces were cut up into scraps, a multitude of
governors and hordes of directors oppressed every region – almost every
city; and to these were added countless collectors and secretaries and
assistants to the directors. Judges seldom had civil cases before them: they
tried (not frequently, but incessantly) condemnations, confiscations, and
requisitions of every kind of property, and unbearable inequities in the
imposition of taxes….  Diocletian’s boundless greed would never allow his
own treasury to be tapped, so he constantly piled on new taxes and
contributions in order to keep his personal hoard intact” [quotation found
here<http://www.thefreemanonline.org/columns/roots-of-economic-understanding/>
].

Beware whenever those with power pompously decry the ‘greed’ of others.

Sincerely,
Donald J. Boudreaux


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Laissez Faire – Not! <http://cafehayek.com/2009/08/laissez-faire-not.html>

Posted: 23 Aug 2009 05:10 AM PDT

Some myths never die.  I sent this letter yesterday to the *New York Times*;
it addresses only one of the many flaws in David Leonhardt’s article:

Suggesting that President Herbert Hoover followed laissez-faire policies,
David Leonhart writes that “we can’t rerun the past year with a Hooverite
economic strategy” to see what its outcome would have been (”Theory and
Morality in the New
Economy<http://www.nytimes.com/2009/08/23/books/review/Leonhardt-t.html?scp=1&sq=Hooverite&st=cse>,”
August 19).

No need to do so, for the past year *was* run “with a Hooverite economic
strategy.”  From Pres. Hoover’s 52 percent increase in government spending
to his running the third-largest budget deficit then in U.S. history – and
from his creation of the Reconstruction Finance Corporation to his signing
of the Federal Home Loan Bank Act – Hoover’s hyperactive intervention nearly
80 years ago was not very different from Bush’s and Obama’s hyperactive
interventions today.  Hoover himself, campaigning for re-election in October
1932 <http://www.presidency.ucsb.edu/ws/index.php?pid=23269&st=&st1>,
bragged of rejecting the advice of “reactionary economists [who] urged that
we should allow the liquidation to take its course until it had found its
own bottom.”

Sincerely,
Donald J. Boudreaux


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Let’s Not Go Postal <http://cafehayek.com/2009/08/lets-not-go-postal.html>

Posted: 23 Aug 2009 04:54 AM PDT

Here’s a letter that I sent yesterday to the *Baltimore Sun*:

Jerrold Brotman is right to
worry<http://www.baltimoresun.com/news/opinion/readersrespond/bal-ed.le.letters222aug22,0,7017288.story>that
government-run health care will be no more efficient than the U.S.
Postal Service (Letters, August 22).

Worker productivity today is four times greater than it was at the end of
World War II, and – with the advent of the jet engine, the Interstate
Highway system, and other advances in transportation technologies –
transportation costs are much lower.  So a postal service responsive to
consumer demands would today supply its services more efficiently and,
hence, at lower costs.

Alas, however, the inflation-adjusted price of a first-class stamp is today
22 percent *higher* than it was in 1945.

Sincerely,
Donald J. Boudreaux

UPDATE: from Carpe Diem (via Coyote
Blog)<http://coyote-blog.com/wordpress/wp-content/uploads/2009/08/stamps.jpg>
.

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