FIRE YOUR GOVERNMENT EMPLOYEES.

George Mason economist Veronique de Rugy reminds readers that spending your way to prosperity is a fool's errand.

In a thrilling address at the World Economic Forum, Javier Milei, President of Argentina, presented a robust defense of capitalism and a critical examination of all forms of collectivism. His speech, rich in historical context and economic analysis, offers some vital lessons that are particularly relevant for today's globalized economy. Sadly, these lessons have long been ignored by American politicians on the right and left, whether in Washington or on the campaign trail.

Milei began with a stark warning about the dangers of collectivist policies based on Argentina's own, sometimes sad, history. Once a beacon of prosperity under a capitalist framework, Argentina's shift toward collectivism over the past century caused its prosperity to plummet from a leading global position to a much lower rank. Its story illustrates how losing sight of free-market principles can result in economic stagnation or even absolute poverty.

This point is crucial. Milei reminds us that no matter how noble the intentions are behind collectivist policies, whether it's fighting climate change, obtaining justice for all, or enhancing national security -- and whether they are pushed, as Milei says, by "communist fascist, socialist, social democrats, national socialists, Christian democrats, neo-Keynesians, progressives, populists, nationalists or globalists" -- attempting to solve problems in this way harms the very people who are meant to be helped.

Things that sound good in theory don't necessarily stand up in theory, and practice does not make perfect.

That's de rigueur here, dear reader, but with two ancient rent seekers on their way to the presidential nominations, even the brightest among you might benefit by a modicum of repetition.

Readers may think this historical lesson is irrelevant for the United States. After all, Argentina has been an economic basket case, and America in 2024 is still one of the wealthiest nations in the world. Anyone who has taken, as I have, the naturalization test also knows that the expected answer to "What is the economic system of the United States?" is "free market." That one made me smile.

Unfortunately, Milei's warning is relevant to us. While much of our economy remains relatively free, every part of it is subjected to an increasingly intrusive regulatory regime and ineffective, burdensome and unfair tax code. Furthermore, while Democrats and Republicans fight constantly, their economic policies are strikingly, similarly and increasingly collectivist.

Both parties have recently become so populist that they could justly be described as modern Peronists who believe that politicians, better than people operating in a free market, can direct investment and determine which industries should succeed and which should fail. It's no exaggeration to say that America has traveled a significant distance down the "road to serfdom" that Milei warns about.

Milei, an economist by training, doesn't only criticize collectivism; he offers a compelling, positive case for capitalism. By tracing global economic history, he highlights a pivotal moment: the advent of capitalism and the Industrial Revolution. This period marked a departure from centuries of economic stagnation, ushering in unprecedented growth in global per capita GDP and a significant reduction in poverty.

Yes, and it's easier to point to the large house on the hill and say something about "plutocrats" or "oligarchs" rather than do the hard work of explaining that the very Disinterested Experts who are supposed to implement the policies that look good on the chalkboard are actually contributing to the continued well-being of the Professional Managerial Classes rather than letting emergence run its course.

The data offered by Milei is striking. The transformation from a near-zero growth world to a rapid economic expansion under capitalism testifies not just to the free market's efficiency, but to its capacity to improve people's lives on a massive scale subsequently. The fact that poverty and inequality still exist makes Milei's insights more pertinent, not less. They suggest that the path lies not in abandoning capitalism but in more effectively harnessing its immense potential.

Even better, Economic growth isn't just an engine of wealth production but also of peace and tolerance. More of that, please.

Milei's perspective challenges the growing worldwide trend of increased government involvement in economic affairs. He advocates for limited government intervention, where economic freedom, respect for private property and market mechanisms are paramount. It's a reminder that the road to prosperity is paved with policies that empower individuals and businesses alike, fostering an environment in which innovation, entrepreneurship and opportunities for all kinds of people thrive.

So mote it be: the more complex the world, the less reliance we should place on those chimerical Disinterested Experts.