Wednesday, January 10, 2007

They certainly can't calculate

Eighty years ago, the esteemed free market economist, Ludwig von Mises, proved that a society organized under socialism is bound to fail. The reason: Absent a free market and its requisite private ownership of property, planned economies cannot calculate profit and loss, and, hence, are bound for chaos and poverty. OK, that's the theory. Now, how about the proof?

The proof is evident in the article, Inventive Thinking (Dispatch, January 10, 2007). Over the last five fiscal years, OSU spent $2.3 billion on research that yielded less than $4 million in licensing revenue; a loss of $2.3 billion. A $2.3 billion loss? Think about it? That amounts to $209 in lost income from every adult and child in Ohio. Incredible.

More so when you consider that this was considered a success by both the Dispatch writer and the OSU officials quoted in the story. They lost $2.3 billion and they consider it a success? Obviously the tax spenders at OSU refuse to live by the tough rules of the market, at least when it's someone else's money on the line.

As government interventions in the market and our daily lives continue to expand throughout Ohio and the US, keep in mind what Mises proved and OSU confirmed. And, as Ohio continues to sell bonds for supposed investments in research and development, remember the likely return on investment; another huge loss - more money down the rat hole.

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