Laissez faire

Many years ago, in France, a group of politicians asked a gathering of businessmen, “What can we do to help you succeed?” And in response to this question, an astute businessman replied, “laissez faire.” By this answer, he meant “leave us alone.”

It is a well known story, told repeatedly over many decades. And yet, to this day, bureaucrats and politicians all over the world still stubbornly refuse to embrace the vital message: “leave it alone.”

Politicians and government bureaucrats often believe that they can micromanage the economy and produce prosperity. They arrogantly believe that they can direct the economy and allocate private resources through various schemes of taxation and regulation. Such fancy notions afford them a sense of power and worth. They want to feel that they can make a difference and do right by their constituents.

In the CNMI, for example, we see all sorts of government officials concocting various schemes to revitalize our sluggish economy. We see officials actually proposing the creation of a government-backed regional airlines, in order to offset the drastic flight reductions imposed by both Northwest and Continental Airlines (so as to remain profitable). We see government officials touting the merits of “eco-tourism” and pledging to aggressively promote that and other forms of tourism. We see various “Free Trading Zone” proposals.

And through all of these proposals, we see one common denominator–a recalcitrant government that adamantly refuses to surrender its control, to release its intractable stranglehold over a struggling economy, and to simply “leave it alone.” Many local officials still routinely speak of centralized visions for the future, of
Master Plans, and “Five Year Plans” reminiscent of Soviet state planning.

CNMI government officials desperately need to read the works of the great Austrian economists, Ludvig Von Mises and F.A. Hayek–the men who conclusively refuted the myth of efficient state planning. From these works, our government leaders need to realize that government is inherently corrupt and inefficient.

Governments do not know how to create wealth. Only the private business sector can create enduring prosperity and foster a higher standard of living for all. All the government can do is step aside, provide the economic incentives– the tax reductions and bare modicum of regulations–and allow private enterprise to flourish and do the rest. Laissez faire indeed. Leave it alone.