Politicians and their Illusion of Power? Take a look a give your opinion:?
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In some ways, what we do as commentators on economic affairs is to follow this model again and again. The other day, a candidate for president suggested that the answer to our economic woes was more regulation. He had it all figured out in his mind. Immediately, free-market economists from all over the world joined forces to point out that his goal of higher economic productivity could not be achieved this way. It was an unwelcome message but one necessary to deliver regardless.
The experience of Iraq has provided myriad examples of the same. The US wants to pump oil. It wants to start factories, stores, and commerce generally. But it refuses to put private owners in charge. As a result, all its military muscle has amounted to very little at great expense. It is a classic example of how governments fail when they try to fight against forces they cannot control. Factories in Iraq that have gone into operation have done so without support of the occupying government.
And think of the war generally. At the outset, the visionaries in the Bush administration imagined that Iraq was really a very simple problem to solve. It only needed to be decapitated and the magic dust of the US presence would otherwise create an orderly and prosperous society that would be a model for the region. The reality hit. Crime was unleashed. Feuding political factions clamored for control. Production stopped. Society flew into chaos. This was not because of the absence of the political leadership. It was because of the presence of foreign martial law in a country that was seething in resentment against the US.
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