Steve Horwitz’s recent lecture at Western Kentucky University may have directly concerned failures of the Federal Reserve System, but the nationally known economist’s presentation also offered crucial reminders of how central planning in any sector is a failure.
Proponents of a command-and-control society like to claim that it’s free-market policies that have been tried and found wanting. This nonsense has been crammed down the throats of Kentuckians for so long that the idea of a truly free marketplace for industries like banking, health care or education is dismissed as radically unworkable.
Why, exactly, do we need a central bank like the Federal Reserve to assert monopoly control over our nation’s money supply when the competition of the marketplace works effectively in countless other industries?
WKU student Raymond Shears, a 21-year-old junior business major from London who attended the Horwitz event, told Bowling Green Daily News reporter Chuck Mason that while “it was good to hear an opposite viewpoint on the Fed,” he nevertheless believed that “we need to keep the Fed because of the economy.”
Apparently for Shears and others who think like him, the idea of banks operating according to free-market principles may be philosophically interesting, but it’s theory best left in the lecture hall.