There is a very serious problem in the social sciences where some academics think they can control the economy following the path first blazed by Karl Marx. Previously, the accepted normal was Laissez-faire, meaning that the economy was far too complex for governments to interfere. This emerged from Adam Smith and his “Wealth of Nations.”
The academics needed to raise their stature and to present themselves as problem solvers at first in a crisis, but then they crossed the line into believing that they could restructure the world economy. That was set in motion by Karl Marx.
Before Keynes died, he admitted that his theories were wrong. He had spent his life arguing against Smith and that economists could manage the world to bring an end to recession and depressions. This new theory in economics promised that the government could create perpetual prosperity.
Then came the 1974 Crash and the emergence of stagflation, which was supposed to be impossible. Volcker delivered his “Rediscovery of the Business Cycle” and how it had defeated Keynesian Economics – the “New Economics,” and Schwab never listened.
The previous Fed Chairman Arthur Burns, who was there when Bretton Woods collapsed, also noted that the business cycle had always won. Academics were wrong, and they could not create a land of utopia.
Schwab has continued the Marxist belief that academics are capable of redesigning the world economy. Schwab believes, like Marx, that he has the mental capacity to see the world and reshape it. He has convinced world leaders to listen to his nonsense, which has proven wrong every time it has been attempted.
Schwab has convinced world leaders that this time it will work, and they will gain more power. Do any one of these people, incompetent to rule the world, know anything about how the economy works? Communism and socialism have always failed because we are human, and we are not worker bees to be directed from some central hive.
Nixon’s famous 1959 Kitchen debate made it clear that under Marxism, no innovation ever took place that increased the standard of living for the people. All innovation was directed at creating more power for the state and its nuclear weapons. Only when people are free to discover, think and explore does the standard of living ever increase.
Today, Big Tech is aligned with the dark forces out to change the world and eliminate our freedom to everything. They cancel our speech to prevent any narrative that dares to challenge what these people believe because they have been promised to rise to the top of society as long as they help destroy the very country where freedom allowed them to climb the ladder to the top. Has money just corrupted their thinking? Or have they just been lured by Schwab’s dream of being the new elite in the changing new world?
The post Schwab – The Madman of Davos Changing the World first appeared on Armstrong Economics.