The Reverse Midas Touch of Government

Townhall.com ^ | January 7, 2013 | Daniel J. Mitchell

[Kaslin]

Since I’m an out-of-the-closet libertarian, it goes without saying that I’m not favorably disposed to government intervention. As far as I’m concerned, Washington’s an inherently corrupt town filled with people seeking unearned wealth.

But even if I didn’t have any underlying philosophical or moral principles, I think I would still favor small government.

Why? Because just about everything government does turns into a bloody cluster-you-know-what, so there’s also a utilitarian case for libertarianism.

I discuss the reverse Midas touch of government with John Stossel.

The theme of Stossel’s show, by the way, was looking at how good intentions lead to bad results. I actually think that’s too optimistic.

Most government intervention is driven by sordid insider scheming, not good intentions. The politicians merely pretend they have noble-sounding goals when peddling their manure to the public.

But regardless of the goals, the result is still the same.

I point out that if the burden of government spending grows faster than the private economy (sort of Obama’s Golden Rule rather than Mitchell’s Golden Rule), bad things inevitably will happen.

Dan Mitchell Explaining How Government Screws Up Everything

Other points from the interview:

• Green energy programs led to Solyndra-style scandals.
• Pro-housing policies led to a destructive bubble.
• Special tax preferences led to a monstrous tax code.
• Welfare programs trap people in poverty.

I suppose a more interesting program would be to identify things that the government does intelligently and effectively.

Any suggestions?

P.S. According to Greek mythology, anything Midas touched turned into gold. But since the fable also says that this blessing turned into a curse, perhaps this post should have been titled the “The Midas Touch of Government” rather than “The Reverse Midas Touch of Government.” But since I’m already trying to restore the good name of Robin Hood, I’m going to leave it to others to decide how to characterize Midas.

[justa-hairyape]

A civilization that develops large governments also eventually develops nuclear weapons and world war. Apparently all such civilizations have destroyed themselves in this Galaxy. Otherwise we would have heard from some of them by now.

[Graewoulf]

I call it the touch of the Fecal Federal Finger.

[ansel12]

The more “libertarian” America becomes, the more empowered the left grows, this used to be a conservative nation.

Arguing social liberalism and economic conservatism only helps the left, as they agree with and encourage the social liberalism, and then laughingly accept all the new liberal voters that social liberalism creates.

[itsahoot]

Arguing social liberalism and economic conservatism only helps the left,

Exactly so, but don't expect any praise for pointing that out.

Libertarianism is not our friend.

[pluvmantelo]

The writer uses “I” more often than BenitObama. He may be a sound thinker but he’s a lousy writer.

[Democrat_media]

Yeah that is weird.

They scientists which know everything and are so superior to us say the universe began in the big bang 13 billion years ago but that life on Earth only began 1 billion years ago so where is the other life?

[justa-hairyape]

Clearly the nuclear umbrella is very difficult to break through. Once a large government finances and develops nuclear weapons, it is just a matter of time before they are used. In our case, the first nukes were used right after they were developed. Physics is the one known commonality between all the planets in this galaxy. So if nuclear physics is dangerous enough to destroy civilizations on this planet, it is dangerous enough to destroy civilizations on all planets.