Dubai Leads the Way

Dubai, which is essentially an independent city state in the United Arab Emirates is experiencing severe economic troubles. Why would that be? It is a beautiful place, in part because of the vast government and government related investment in infrastructure and other public building, including the creation of a whole new island. It's apparently hard to walk down the wide new sidewalks without bumping into a fabulous palace-like structure. Dubai is, after all, one of the fabulously rich oil nations on the Arabian Sea (or Persian Gulf if you prefer).

Maybe the vast 'investment' in infrastructure is part of the problem. Those fabulous palaces are apparently for the most part vacant. This situation is similar to the financial panic of 1837 in this country. Free market economists have blamed that on over investment in infrastructure. This had been spurred on by the inflation of the central bank before Andy Jackson was able to close it down. (He was the first one to abolish the Fed.) Like FDR, Barack Hussein Obama's economic theorizing says that 'investment' by the government in infrastructure and related projects is just what we need. Actually it is not what we need but I do not blame the president for not knowing the unknowable. That is why the market, without government intervention, is the only mechanism for deciding what needs to be produced to satisfy society's most urgent needs. If you do not understand that, I have a bridge to nowhere that you might be interested in.