Sunday, July 12, 2015

Liberty, Security, Uncertainty, and Statism

State-run "social safety net" offers not economic security, but a false sense of economic security. Thus, it maximizes actual economic insecurity by institutionalizing moral hazard and making social stability dependent on the constant growth of the inflation and debt-fueled hyperbubble known as the welfare state. Just as state-run deposit insurance and "lenders of last resort" prevent local bank runs at the expense of opening the floodgates of spectacular, systemic recessions, state-run "social safety net" puts to sleep a constant concern for one's individual economic security at the expense of creating systemic, collective economic and moral dangers.

Uncertainty, including economic uncertainty, is an ineradicable fact of life. To successfully deal with it is to constantly and honestly face it. To try to eliminate it by sweeping it under the rug is to eventually succumb to it in a very painful manner.

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