Subscribe to Breaking NewsRuby-Sachs: A blow to free market capitalism
, 365gay blogger 10.23.2008 3:40pm EDT
Another convert joined the growing movement in support of economic regulation: Alan Greenspan.
The New York Times reports: “Alan Greenspan, the former Federal Reserve chairman once considered the infallible maestro of the financial system, admitted on Thursday that he “made a mistake” in trusting that free markets could regulate themselves without government oversight.”
Looks like Keynes was right. Duh.
R-S,
The same that Greenspan was able to learn from his mistakes and made a formal apology, perhaps, you should consider doing the same for some of the ridiculous things you have blogged about without any research on the matter or forethought.
The notion that a completely unrestricted market is beneficial to society is little more than right-wing fantasy.
In terms of promoting societal welfare, some degree of regulation is useful. That does not mean all regulations are good, only that some level is acceptable. Ideally, the only restrictions put in place would be those that encourage pareto efficiency and minimize dead weight losses imposed on society.
The entire idea of “free market capitalism” is a hoax that corporate executives like to push when arguing that the government shouldn’t have any power to regulate them. But historically, those same executives have always turned to the government for capital, to promote initiatives beneficial to business and even to do their R&D for them. Many integral elements of our economy that businesses rely on today like aviation, the interstate highway system and even the internet were all promoted (and funded) by the government. The oil industry looks to the government to help fund exploration and exploitation, as well as provide military protection for oil fields in far flung parts of the world. Banks look to the government to help manage shortfalls and maintain liquidity.
What the so-called “free market” lobby really wants is for the government to continue to hand out money, but not demand any accountability from business for how it’s used.
It’s about time for America to wake up and smell the coffee. The total lack of transparency both in the financial and industrial sector, is destroying our democracy, piece by penniless piece. The fat cats are no longer the fat cats……