The Fatal Conceit

clipped from weeklystandard.com Of course some of those companies would fail, and suddenly letting that happen is a political no-no. When the automakers came to Washington to beg, Nancy Pelosi said, "We reject those advocating bankruptcy." Why? Bankruptcy can be a good thing. Kmart declared bankruptcy in 2002, but it didn't disappear. Filing for bankruptcy allowed the company to reorganize itself and reemerge stronger. George W. Bush told CNN, "I've abandoned free-market principles to save the free-market system." Why did Bush and Pelosi think they knew how to run the economy? F.A. Hayek famously termed this the "fatal conceit"--governments can't possibly know everything that's going on in an economy, and so while government intervention may delay some economic pain, it cannot stop it. "The arrogance of officialdom should be tempered and controlled," said Cicero in 55 B.C. He was right.