It’s true, isn’t it? Take communism (advanced socialism) for example. How many times has it been tried and failed? Yet the idea of a communist workers paradise won’t go away.
Mike Shedlock, better known as Mish of Mish’s Global Economic Trend Analysis, is one of my favorite economic pundits. In his article, Mish postulates a new law, which he calls : The Law of Bad Ideas. He writes:
A proposal by French president Francois Hollande got me thinking about “The Law of Bad Ideas“.
I did a search for the phrase and surprisingly, nothing came up. Thus, I get to define the phrase.
The bad idea that French President Hollande is promoting in the so-called Robin Hood Tax, otherwise known as the Financial Transaction Tax. But, rather than go into why the Financial Transaction Tax is and always has been a bad idea, let’s just stick to looking at and thinking about Mish’s new law. He not only defines The Law of Bad Ideas; he has come up with five corollaries to his law:
Law of Bad Ideas: Bad ideas don’t go away until they have been tried and failed multiple times, and generally not even then.
Corollary One: Left alone, bad ideas get worse over time.
Corollary Two: The overwhelming desire to implement bad ideas leads to compromises guaranteed to make things worse.
Corollary Three: Those in positions of political power not only have the worst ideas, they also have the means to see those ideas are implemented.
Corollary Four: The worse the idea, the more likely it is to be embraced by academia and political opportunists.
Corollary Five: No politically acceptable idea is so bad it cannot be made worse.
Is Mish brilliant or what? I wonder if Mish realizes how his simple Law of Bad Ideas explains so much about why the asylum we all have to live in has been and continues to be so screwed up? Please feel free to use the comment section to give examples that fit Mish’s law.
Well, that’s what I’m thinking. What are your thoughts?