Tuesday, May 11, 2010

the good articles keep on coming: the failure of the unfree market

"What we have here is the failure of the unfree market. That means the failure of Greece. And the other PIGS (Portugal, Italy, Greece, Spain). And Europe. And it means the U.S., too. It even includes the Great Recession. The modern welfare state is collapsing around us.

If you had believed in the 72-Year Rule, you would have seen this coming. The 72-Year Rule says the lifetime of any social order or governing paradigm is about 72 years. For example, how long was it from the adoption of our original Constitution (1789), which sanctioned slavery, to the Civil War (1861)? Call it 72 years. And from then until the New Deal in 1933? Another 72 years. How about from the Bolshevik Revolution (1917) to the fall of the Berlin Wall (1989)? That would be 72 years again.

"But," you say, "it was the free market that led to all this -- you know, unregulated credit default swaps and derivatives and such." No it wasn't. You have no idea what caused the financial meltdown. While government regulators are quick to say that lack of regulation was the culprit, too much regulation was likely the real culprit.

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