An Oldie But Goodie and One World Government

I figure I would put this classic video up.  If you don't get why the Federal Reserve and a centrally dictated monetary policy is so destructive for an economy, this explains everything.

And now for Did You Know?

Did you know that the Daily Show's Earth-The Book is absolutely phenomenal.

If you don't know, the book is a parody of a public school text book.  Earth is set up like a text book for visiting aliens that explains the highlights the different aspects of the human race.  After each chapter, there are  number of questions that are labeled FAQs (Future Alien Questions)

One if the better questions at the end of the chapter on Society:

Q. If ridding the Earth of war and strife was a goal, why wasn't the entire globe under a single government?
A. Good question, fascist.


A good question indeed.  Despite the paranoid ramblings of the New World Order type, it is practically impossible for a one world government to ensure peace or even be a sustainable body.  Just like the impossibility of a company obtaining the knowledge coordinate all market activities on a global level to become a monopoly producer of one good, a government attempting to do the same would face the same dilemma.  The world is just too large for a one world government to be in constant control and to ensure peace.  In order to do so would require the hiring of such a massive group of individuals to run the government that it would undermine the ability for private enterprise to exist.  The amount of capital sucked out of the private sector to pay for the enormous public sector would be a return to the days of Kings and serfs.  If done on a global scale, pockets of rebellion would be sure to rise and lead to the one world government's destruction.

One world government is simply unsustainable and fails for the same reason government planning of the economy is a disaster when done on a national scale.  Hayek's and Mises's information problem of bureaucracy being unable to coordinate a proper pricing system that operates under a simple supply and demand mechanism is the reason why socialism never works.  It is the same reason why one world government will not work in the long run.  The overhead costs end up overwhelming its efficiency.

Since I am on the subject of O.W.G., Earth does a great job of highlighting why the EU is such a joke in its money section:

The Euro was a transnational currency meant to test how small a nation could be and still drag an entire prosperous continent into economic collapse.

It's eerie how true that statement is unfolding in front of everyone right now.