How does common sense work? Everybody has it but most people don’t use it. How can James Quillian be right when all of the credentialed economists in government take the other side of economic issues? Common sense is the tool and here is an example of how it works.
The Federal Reserve and other government entities are involved in central economic planning. Why will their efforts have a negative outcome?
Simple, they are giving government the role of making economic decisions. Governments are only capable of making political decisions. So, when government manages resources, the resulting allocation will always be other than optimum.
The dominate force in all human activity is self interest. It never goes away. If it did, the species would perish. When government engages in an activity, self interest does not disappear. People who make decisions in government do what is best for them personally. Central economic planning helps anyone with enough political power to make it in the personal interest of representatives to support their economic efforts.
Central economic planning helps some, hurts others and guaranties a poor outcome.
So, how does James Quillian do at making forecasts? James Quillian, accepts uncertainty as an alternative to knowing the future. Certain things we do such as central economic planning guarantee a negative outcome because a reckoning eventually occurs as a result of inefficient resource usage.