The errors of the PM, part 3. Devil's advocate series 57.

1. Another error the PM makes is his refusal or reluctance to gradually scale down central command economics institutions 

2. This is a belief that central command centres made up of politicians and bureaucratic can drive economic development. 

3. The concept was coined famously by American economist, Milton Friedman 

4. Our own obsession with command centres of economics, stems perhaps from the influence of Fabian socialism 

5. Tun Razak, our bapa pembangunan was greatly influenced by Fabian socialism. 

6. The beliefs of Fabian socialism maybe good and served it's functions in the 50s and 60s, but it never imagined it will grow into grotesque command centres controlled by bureaucratic brahmins. 

7. The beliefs of Fabian socialism run counter to the teachings of Adam Smith, the idea of free market economics. 

8. The ideas of Smith were expanded by people like von mises, Hayek and most famously by Milton Friedman. And countless other free market economic adherents . 

9. It's from each according to his ability and areas that interest him, to society what they want secured through price signals 

10. I am not going to use the term capitalism in lieu of free market economics 

11. That term carries much evil connotations, wrong most of the time . 

12. A group of people, the evil capitalists owned and controlled means of production 

13. The ordinary people, the proletariat have nothing to sell but their labour 

14. The proletariat are paid just enough for their upkeep but the value they created is very much more 

15. The evil capitalists appreciate the surplus value and this is the source of much exploitation 

16. The central command economic centres often drive the economy the wrong way. 

17. This is because they are driven by such factors as political expediencies and other policy factors. 

18. Not by price signals and therefore not,( economically) rational 

19. We can in fact call these central command economic centres as centres of economic irrationalities. 

20. These centres will need troops in the form of middle and lower ranking government officers to 'police', monitor and nursemaid the chosen economic activities 

21. This may lead to a big problem. Civil service corruption. 

21a. Upon retiring these people can buy 15-20 million houses at county heights kajang, taman tun or damasara heights. Houses with big land, high ' shilling ' and with 'water featured'. 

22. Economic actors respond to market signals not to directives from central command economic centres. They don't need EPUs or ICUs 

23. They have their own. Internal EPUs and ICUs. 

24. I am constantly amazed at the ingenuity of our petty traders such as restaurant operators 

25. They come out with novelty dishes and premises with good ambiance. 

26. Certainly they do not respond to the dictates of the central command centres but to free market signals. 

27. Like Friedman said, greater economic achievements are gotten when economic actors respond to free market signals 

28. The refusal and reluctance of the PM to scale down gradually the size of the central command economics, I believe is more due to ignorance and not giving much thought to this edifice from the previous UMNO regime. 

29. I see this as an an error on the part of the PM. 

30. May I suggest the PM reads ,von Mises, Hayek and Friedman?