Posted on 02/11/2006 11:09:28 AM PST by Marxbites
To the individualist Lao Tzu, government, with its "laws and regulations more numerous than the hairs of an ox," was a vicious oppressor of the individual, and "more to be feared than fierce tigers." Government, in sum, must be limited to the smallest possible minimum; "inaction" became the watchword for Lao Tzu, since only inaction of government can permit the individual to flourish and achieve happiness. Any intervention by government, he declared, would be counterproductive, and would lead to confusion and turmoil. The first political economist to discern the systemic effects of government intervention, Lao Tzu, after referring to the common experience of mankind, came to his penetrating conclusion: "The more artificial taboos and restrictions there are in the world, the more the people are impoverished … The more that laws and regulations are given prominence, the more thieves and robbers there will be."
The worst of government interventions, according to Lao Tzu, was heavy taxation and war. "The people hunger because theft superiors consume an excess in taxation" and, "where armies have been stationed, thorns and brambles grow. After a great war, harsh years of famine are sure to follow."
The wisest course is to keep the government simple and inactive, for then the world "stabilizes itself."
As Lao Tzu put it: "Therefore, the Sage says: I take no action yet the people transform themselves, I favor quiescence and the people right themselves, I take no action and the people enrich themselves…"
(Excerpt) Read more at mises.org ...
I just had to add this from the essay as well:
""The only Chinese with notable views in the more strictly economic realm was the distinguished second century B.C. historian, Ssu-ma Ch'ien (145-c.90 BC). Ch'ien was an advocate of laissez-faire, and pointed out that minimal government made for abundance of food and clothing, as did the abstinence of government from competing with private enterprise. This was similar to the Taoist view, but Ch'ien, a worldly and sophisticated man, dismissed the idea that people could solve the economic problem by reducing desires to a minimum. People, Ch'ien maintained, preferred the best and most attainable goods and services, as well as ease and comfort. Men are therefore habitual seekers after wealth.
Since Ch'ien thought very little of the idea of limiting one's desires, he was impelled, far more than the Taoists, to investigate and analyze free market activities. He therefore saw that specialization and the division of labor on the market produced goods and services in an orderly fashion:
Each man has only to be left to utilize his own abilities and exert his strength to obtain what he wishes … When each person works away at his own occupation and delights in his own business, then like water flowing downward, goods will naturally flow ceaselessly day and night without being summoned, and the people will produce commodities without having been asked.
To Ch'ien, this was the natural outcome of the free market. "Does this not ally with reason? Is it not a natural result?" Furthermore, prices are regulated on the market, since excessively cheap or dear prices tend to correct themselves and reach a proper level.
But if the free market is self-regulating, asked Ch'ien perceptively, "what need is there for government directives, mobilizations of labor, or periodic assemblies?" What need indeed?
Ssu-ma Ch'ien also set forth the function of entrepreneurship on the market. The entrepreneur accumulates wealth and functions by anticipating conditions (i.e., forecasting) and acting accordingly. In short, he keeps "a sharp eye out for the opportunities of the times."
Finally, Ch'ien was one of the world's first monetary theorists. He pointed out that increased quantity and a debased quality of coinage by government depreciates the value of money and makes prices rise. And he saw too that government inherently tended to engage in this sort of inflation and debasement.""
Murray Rothbard ping! :)
Bump!
I'm a bit new to this - is there a difference between a ping and a bump, since I haven't actually tried to figure either out, or asked before?
ping
"'Twas ever thus!"
I hope you agree that man's inherent self interest is what is directly responsible for mankinds ever increasing standards of living and innovations?
Could YOU tell me what are pings and bumps?
Thanks - both are good, good!
that portion got my attention too.
I always ping, never bump. Ping is to bring something to someone's attention, and I use it to bring things to my own later attention, so technically I self-ping. It's ok as long as you use a clean pinger each time.
Great post!
You are more than welcome - and thank you!
Thanks for posting this interesting article.
A belated thanks! I read throughout the day when I had time. Economics is not my strong point, but this was well written and easy for me to understand. One of my daughters has gone back to school for economics and human resource management. She has fallen in love with economics. I sent this to her and hope she enjoys it as much as I did.
the difference between the too is hugh and if one doesn't no that sad difference it can get series...
teeman
Thanks ALL of you.
I am deeply gratified to see how many care like I do - pass this all over the place.
mises.org really bulls through the BS from both sides - if the Founders were here - this is the site they'd recommend we all read, all the time.
And here's another jewel for my special friends here re: Joel Miller's new book "Size Matters: How Big Government Puts the Squeeze on America's Families, Finances, and Freedom (And Limits the Pursuit of Happiness)"
http://www.cato.org/realaudio/cbf-02-02-06.ram
You will really enjoy this - then cry for what we've allowed our country to become from our own stupidities.
Thanks for the link.
I'll check it out.
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