Take cover when you hear a political leader talking about economic affairs. You can bet a bad decision is incoming. Every so often, however, great leaders manage to land a real whopper that takes them down along with their whole country. FULL ARTICLE by John S. Chamberlain
Source link: http://archive.mises.org/13183/ten-economic-blunders-from-history/
Ten Economic Blunders from History
Previous post: Defending the Gypsy Cab Driver
Next post: Hulsmann and Corrigan to Speak at IEA
{ 24 comments }
i think the second to last sentence in #2 “shearing the english wolf” should read “…living on the lam…”, not “lamb”.
Right you are, Brian. Thanks.
thanks – haven’t laughed so much in ages. Particularly liked the last sentence in no. 9.
Brian jumped on it before I could, but I rather suspect that Mr Chamberlain’s spellcheck software was responsible, and it got by him on the proofreading. Not that it’s important, but I’d switch the damn thing off if I were you……
It doesn’t help when he chooses a correctly spelled but wrong word. Antwerp isn’t in Holland, and something that is careened is completely under control (firmly on its side on a beach), unlike something that is careering.
Oh, and Japanese swords simply weren’t that good that early; matters only improved after the Japanese kidnapped and brought back artisans after a foray into Korea.
#5 reminds me of the Confederacy’s “King Cotton” policy.
The last sentence on #9 about Mengistu Haile Mariam rather disheartening.
That was great and entertaining – I liked the range of the stories.
I remember reading an article about Mengistu some years ago in the Chicago Tribune, about the whole grand scheme of forcibly relocating the population. People ended up dying in from diseases in the new location–but it looked so green and lush from the presidential airplane! They had trouble returning to their land, because it wasn’t really “their” land, it was the government’s land. No property rights, no freedom of movement or trade, no wonder they needed that “We Are the World” video. That image of supreme hubris is etched in my memory.
“Take it on the lam” is the expression you’re looking for (in the item about King John) — not “on the lamb.”
the tzar was murdered not executed.
He was murdered, execution style.
The gold factory turned out to be a hoax, and the world was spared-for a while-the spectre of infinitely inflatable money…
Excellent – I congratulate upon adopting the cracked.com style and there is no bit of sarcasm in it. If you want the “masses” to understand a little bit about economics you have to make it entertaining. Most economics blogs are horribly boring and dry for the normal person. This style (a numbered list of interesting fuckups) is very entertaining and popular. There something in a numbered list that makes you just WANT to read it – even if one made a list of the 14 Ugliest Speices of Frogs I just could not not read while when it was just “here is some ugly frogs” I would not be interested. Learn from the Buddhists, they (we) make a numbered list of everything. Plus, people love to read about “EPIC FAIL” stories.
So two thumbs up and forward in this direction!
Example 11
U.S. President Barrack Obama……………………………..
I was very pleased reading the part of the fall of Antwerpen in 1585.
Although I have studied the official history of the fall of Antwerpen several times, I never heard before that the fixing of the price of grain by the government could have played an important role in the fall of Antwerpen.
The part of the country – The Southern part of the Netherlands- Farnese was able to take back from the people, was subsequently depopulated (about half the population escaped) and under the terror of the regimes which were installed, freedom and protection of property was limited and resulted in four centuries of poverty.
What a difference compared to what happened with the Northern part of the Netherlands!
The consequences of the fall of Antwerpen in 1585 are still largely impacting the political situation in the Belgium today.
Small things can have a large impact.
No, the Spanish (later Austrian) Netherlands did not become poor from that. Rather, they became a “cockpit of war”, being fought over because they were actually and potentially highly productive, had good communications, and offered a path for would be invaders of the lands on the other side.
After the Southern Netherlands were reconquered by the Spanish troops, everyone who did not openly adhered to the Catholic Chruch, was forced to leave the country.
Because of this rue, it is estimated that about half of the population fled the country.
(As a consequence, prices of land and houses dramatically felt.)
But this is not the most important: the entire culture, which was till recently the prevalent one, became one of submission and free tought could be hardly found.
The poor Southern part, probably due to oppression of liberty, feld in its poor state, and excellence recognized outside the country remained rare.
In the 19t century and beginning of the 20th century the southern Netherlands were called “Poor Flanders”.
The northern Part of the Netherlands, which were considered as the first free nation in the world, flourished, and at a certain moment was one on the richest areas in the world. Settlements were made at several places: America (New Amsterdam, South Africa,….).
Since there was no basic initial differenvce between the Southern and the Northern part of the Netherlands, the distinct difference in wealth level was striking. As an important contributor to this – may be the most important- is the difference in freedom between the two parts.
No Great Leap Forward!!!
I thought that would be a lock, with all the backyard smelting pits and the tens of millions of dead Chinese.
#11 Failure Is Its Own Reward
After utterly and spectacularly failing to fulfill his organization’s own stated primary goal of stabilizing the financial system (among other failures), in 2009 the United States Congress reappoints Benjamin Bernanke as chairman of the U.S. Federal Reserve. The continuation of “Helicopter Ben” Bernanke’s policies for another several years helps to directly and indirectly lead to the eventual bankruptcy and ruin of most large cities in the USA, many of its states, the USA itself, the European Union, the People’s Republic of China, Japan, and many other nations. The resulting interruption of global trade and finance leads to widespread famine and starvation, years of experiments in protectionism and totalitarianism, extreme political and diplomatic instability, and extensive warfare which eventually claim tens of millions of lives.
On January 22, 1991, Mikhail Gorbachev, the president of the Soviet Union, decreed that all existing 50- and 100-ruble banknotes were no longer legal tender and that they could be exchanged for new notes for three days only and only in small quantities. This had the effect of instantly deleting large portions of the savings and accumulated capital of private citizens. He followed up this genius move on January 26, by ordering that the police had the authority to search any place of business and to demand the records of any business at any time. The union’s economic problems accelerated into a death spiral. Gorbachev resigned on December 25, and on the next day the Supreme Soviet dissolved itself and the Union of Soviet Socialist Republics.
Uh oh. I taste a little bit of “post hoc, ergo propter hoc” in the article. Shame!
@ Piet – Worse than Spanish rule was probably the devastating Dutch blockade and constant warfare visited upon the Spanish Netherlands by Spain, France and the Netherlands. Even the Dutch suffered their fair share of absolutist rule when the Orange party won out over the Republicans. But, just like this article, the whole reality is more complicated than can be written in a small post.
@ Ohhh Henry
Brilliant!!
jl The idea of moving everyone into villages to leave more land open to farming originated in
Russia in the 1930s but caused a paucity of incentive. The state owned the land therfore you could not trespass on land you didn’t own any more than you can trespass on free range. That seems to be our Administration’s thought about open borders.
Piet De Pauw according to Thieleman J van Braght’s Martyr’s Mirror compiled in the Dutch Language about 1660 the Ana Baptists were under severe persecution along about the time, 1585. Their main occupation was farming. I don’t know without review if some of the grain restrictions were due to this persecution. With your interest in that history you might want to review that source. It is available in English. Google it. Most of these blunders were due to some form of price control which can be traced back to covetousness. The law of gravity applies equally to all and so do these economic laws. They do not take kindly to being opposed and thwarted.
This is one of the most concisely applicable mises.org blogs yet. I’m forwarding this to my skeptical daughter, who’s “heard it all” from me too many times.
Thank you.
Comments on this entry are closed.
{ 1 trackback }