Protectionism vs. Growth?

CATO posted a great commentary about a surprisingly forward thinking libertarian editorial in the Bangor Daily News about whether their congressional delegation should be spending time and energy protecting old legacy manufacturing like New Balance footwear or in pursuing new vibrant economic sectors and preparing their workforce for the future economy.

CATO Post
(scroll down to "An Editorial takes an unexpected turn")

Monopolies can only exist with government restrictions on trade and commerce limiting competition from newer, more innovative and nimble competitors.  It's not the lower cost overseas providers that big business worries about, it's the startups that are the lifeblood of American capitalism (creative destruction).  Politicians should be concerned with aiding business to be more competitive by educating the workforce and investing in advanced research (if you believe government has any role at all outside of protecting The Rule of Law) not protecting obsolescence.

The multi-billion dollar lobbying economy of Washington and rampant political corruption from the local to Federal level is fueled primarily by corporate interests seeking tax handouts (Tax Expenditures are poorly accounted and exceed $1 Trillion per year) and anti-competitive advantages.  The one beneficial area of lobbying is in attempts to reduce the overwhelming regulatory burden (estimated to cost Americans $1.8 Trillion annually).

Free market economics is an incredibly complex and poorly understood field so my apologies for seeming to ramble but there as so many forces at work on the economy it is impossible for anyone to understand and control it, which was the gist of Hayek's position and why Keynes is still so attractive despite being proven wrong in every single cycle of the last 100 years.  The Fatal Conceit is too attractive to the intelligent mind... "if ONLY we understood everything well enough we could control it and plan it better".

Return to Study

Having taken some time off from blogging, I have continued avidly following global economic developments through the "Great Recession" and my study of free market economics.  It has amazed me how widely and overwhelmingly the Keynes school has pervaded the entire thinking of the developed world with the notable exception of Ron and Rand Paul, however skewed their views may be (I'll post thoughts specific to each of them soon).

I've added to my reading list (which I do not read enough of!) "Individualism & Economic Order" by Hayek
https://play.google.com/store/books/details?id=ZLFEIdaZZD0C
as well as the old standard Adam Smith's "The Wealth of Nations",
https://play.google.com/store/books/details?id=NLoxfUPHoukC
both of which I'm slowly working into in the little spare time I have.

Next will be "Collectivist Economic Planning" by Hayek
https://play.google.com/store/books/details/Friedrich_August_Hayek_Collectivist_Economic_Plann?id=rauFqOrO5J4C

As I've been posting comments on various relevant articles, I thought it would be beneficial to log them all here as a more consolidated collection of my thoughts on the subject.