
In his article
today, he ‘prints’ a reader’s suggestion on what to do with the ‘billboard problem’ in EDSA. On the assumption that billboard placement is not the best way to advertise, Ciel’s insightful reader proposes that companies maintain a portion of infrastructure such as an overpass. Not only would motorists see the names of these companies, but good will would be fostered as well. I believe this to be similar to the “This is where your taxes go!” signs put up by opportunistic politicians in bridges and whatnot, except that taxes won’t be involved.
The idea itself is nice, ‘di ba? I myself like it, and believe the concept would go well with the
privatization of roads. Who knows, the so-called “adopt-a-highway” system just might catch on in the Philippines.
I wouldn’t go so far as to criticize billboards, however. No matter how much people criticize them as eyesores, they are apparently effective promotional tools, as is evident in their continued popularity. Which means that people are still favorable towards such instruments of ‘corporate greed’ (unless you’re of the hypothesis that advertising is coercive mind control).
AS AN ASIDE
In the same article, Ciel also referred to some obligation to aid the government’s tax collection program by demanding taxi receipts, further hammering into our brains that we are slaves to the state. Uncool.

THE FATAL CONCEIT
‘The fatal conceit’ is a book by the great economist and political philosopher Friedrich Hayek. Even though I haven’t read this 1988 book, which I intend to do eventually, I have a good idea of what he means by the term, based on my reading of his other works.
Many are of the mistaken notion that achieving good via public policy is a matter of hiring those with the know-how and integrity. Rather than have people associate freely, the advocating of which to these planners constitutes extreme ‘ideology,’ the government is assigned the task of allocating resources, according to some guidelines for ‘good governance.’ These guidelines provide a mechanism by which policymakers are kept up to date on advancements in various fields, by which ‘pragmatic’ decisions are made. This is considered a superior system to the outdated ‘free-market economics.’
I’m not even going to bother arguing with these deluded academics; perhaps I can nudge their impressionable students away from such twisted logic wherein theory and history are removed from reality.
SAME TURKEY, DIFFERENT DRESSING
What these academics propose is nothing more than central planning
dressed differently, which has failed and would continue to fail if not for the presence of whatever remains of markets in such a community. You see, what they would call ‘ideological’ is actually an adherence to logical principles, which are timeless and not swept away by the complexities of modernity. And what is naïvely called ‘pragmatic,’ we know better to be merely
the politically expedient.

PRICES, AND THE PRETENTIOUS ALTERNATIVE
Government planning is by necessity flawed and always with an opportunity cost compared to private enterprise, because the feedback mechanism by which preferences manifest, e.g. pricing, is neglected. To the extent that policies replace the market, we have only public officials’ notions as to how resources ‘should be’ used, when in fact utility can only come about when subjective preferences of consumers and investors are expressed.

It is precisely the complexity of the economy that makes state planning a recipe for impoverishment. Public comments as to ‘what would be nice’ or ‘what should be done’ may be elicited (e.g. Habito’s readers’ letters), and bureaucrats can combine these with their discretion, but this would at best approximate preferences (e.g. continued popularity of billboards), which are still best known via prices.
What is the best way to know a person: through their words (e.g. consultations with consumer groups, hiring of industry specialists), or their actions (e.g. market exchanges)?

NO ALTERNATIVE TO MARKETS
In opposing state intervention, one does not assume that market participants have perfect knowledge, or that they even know what they want deep inside or what’s good for them; the real question is, what alternative is there? Market transactions according to individual risk-factored valuations and not by deliberate all-encompassing measures, ensure that economies are ‘planned’ as efficiently as can be.

As we can surmise, government failure is not a matter of competence, but a technical one that even the most successful in the private sector could not hurdle in the absence of prices to guide them.
CONCLUSION
Planners, of whatever ‘non-ideological’ subcategory they’d like to be known, are wrong. They suffer from bad positivistic methodology (e.g. citing of data as ‘proof,’ without the theoretical tools by which to interpret these), are brainwashed by politicized historical interpretations (e.g. blaming past and present depressions on free markets), and have yet to acquire a sufficient understanding of the market mechanism, which is actually quite simple to learn when a brain is not filled with statist ideology.

You don’t have to be a jerk to advocate destruction of the economy. I’m fairly sure that most academics who advocate government intervention are cool, kind people, and even those who accept the perks that come with rubbing elbows with the political elite, are not statists just because of the perks. Many sincerely think that they are a minority seeking to overthrow the free market status quo, when in fact the status quo is filled with anti-market do-gooder interventionists just like them.
But let’s quit the ad hominems. When discussing economics, we should, as the famous statist economist
Solita ‘Winnie’ Monsod would say, call a spade a spade.
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