John Stossel

Simple answers are so satisfying: Green jobs will fix the economy. Stimulus will create jobs. Charity helps people more than commerce. Everyone should vote.

Well, all those instinctive solutions are wrong. As Friedrich Hayek pointed out in "The Fatal Conceit," it's a problem that in our complex, extended economy, we rely on instincts developed during our ancestors' existence in small bands. In those old days, everyone knew everyone else, so affairs could be micromanaged. Today, we live in a global economy where strangers deal with each other. The rules need to be different.

Hayek said: "The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design."

You might think people have begun to understand this. Opinion polls show Americans are very dissatisfied with government. Congress has only a 12 percent approval rating. Good. People should be suspicious of what Congress would design. Central planners failed in the Soviet Union and Cuba and America's public schools and at the post office.

Despite all that failure, however, whenever a crisis hits, the natural instinct is to say, "Government must do something."

Look at this piece of instinctual wisdom: Everyone should vote. In the last big election, only 90 million people voted out of more than 200 million eligible voters. That's terrible, we're told. But it's not terrible because a lot of people are ignorant. When I asked people to identify pictures of Mitt Romney and Newt Gingrich, almost half couldn't.

This is one reason I say those "get out the vote" drives are dumb. I take heat for saying that, but Bryan Caplan agrees. He's a professor of economics at George Mason University and author of "The Myth of the Rational Voter: Why Democracies Choose Bad Policies."

"A lot of bad policies ... pass by popular demand," Caplan told me. "In order to do the right thing, you have to know something."

The "informed citizen" is the ideal of democratic societies, but Caplan points out that average citizens have no incentive to become informed, while special interests do. The rest of us have lives. We are busy with things other than politics. That's why our democratic government inflates the price of sugar through trade restrictions, even though American sugar consumers far outnumber American sugar producers.

Caplan has a radical proposal for citizens: Be honest. If you know nothing about a subject, don't have an opinion about it. "And don't reward or penalize candidates for their position on an issue you don't understand."


John Stossel

John Stossel is host of "Stossel" on the Fox Business Network. He's the author of "No They Can't: Why Government Fails, but Individuals Succeed." To find out more about John Stossel, visit his site at >johnstossel.com. To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com. ©Creators Syndicate