Obama’s speech to the Chamber of Commerce proves once again that he has no idea of what production and trade are all about. Professor Don Boudreaux’s letter on it is illuminating.
To the Editor:
Yesterday Pres. Obama pleaded with members of the U.S. Chamber of Commerce: “Ask yourselves what you can do for America. Ask yourselves what you can do to hire American workers, to support the American economy, and to invest in this nation” (“Obama Vows to ‘Knock Down’ Business Barriers,” Feb. 8).
The job of entrepreneurs, investors, and business owners and managers is to
invest and to produce in ways that are likely to yield the highest profit.
Period. The additional goals that Mr. Obama wants business people to pursue sound splendid when trumpeted in public speeches but, in practice, are far too nebulous to be meaningful, much less workable. No business person can possibly know enough to do consistently and successfully what Mr. Obama asks.
As on so many issues, Adam Smith’s wisdom remains relevant: “By pursuing his own interest he [the business person] frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good.”*
Sincerely,
Donald J. Boudreaux
Professor of Economics
George Mason University