What is particularly frustrating when discussing economic issues with some people is that they honestly believe – because they’ve been told over and over by people who simply just don’t know better – that the meltdown of 2008 was as a result of some sort of “free market” failure. That “deregulation” (yeah right) of the economy was why everything imploded. NPR said it, so it must be true. Smart people listen to NPR.
Sure they do, but the really smart people temper NPR by also listening to ideas not furthered by a government funded media arm. They might try listening to Tom Woods for example.
The interventionist narrative has been used (effectively) by people who want to expand the state into every area of American life. What’s worse is that the reason for 2008 WAS state intervention. The “managers” of the economy, the institution which arbitrarily sets interest rates which then in turn impacts the price of everything in the economy, the Federal Reserve, screwed up. And I mean on a cosmic scale. They held interest rates down for too long in the wake of the September 11th attacks and inflated a worldwide bubble which then popped.
The world caught fire not because the market failed but because central planning failed.
Let me be very clear. The reason people lost their homes and lost their jobs was because of GOVERNMENT failure. The planners failed. The planners in their hubris thought they could outsmart the market.
They couldn’t and they can’t.
But because the planners and their friends dominate academia and the mainstream media the idiotic notion which holds that what the world needs is even more state intervention is propagated.
Simply it is a mix of people who do not understand the role of central banks in the world economy, and big government people (I am using the kindest term I can) who saw 2008 as a “crisis not to be wasted.” Ignorance and opportunism is what drove and drives the big government interventionists in the economy.
Do you honestly think that President Obama has any understanding of Austrian Business Cycle Theory? Not – a – clue. Even though it doesn’t particularly matter in Obama’s case (he is I think more managed than manager) his advisors (at least the people closest to him), are probably nearly as clueless.
It is a crime what the big government people have done now for decades (but particularly since 2008). They have held back the economy at every turn. They over regulate. They over tax. Then when things go wrong they bail all the fat cats out. Those of us who still live in the real economy therefore have the pain compounded. Washington and Wall Street go about their business fatter than ever while the real America languishes.
And then the central planners tell us that the reason for the pain is that the economy is too “free.” That we should hand over yet more of our freedom to them when many of us know that the only reason the planners still have a job is because of the self reinforcing (but ultimately fatal) system of mass delusion which has become the American system of government.
Sorry but I prefer an open sourced economy to one which is manipulated by programmers writing in a language which is full of bugs and which brings the system down periodically.
The market is open sourced economics.