Thursday, March 12, 2009

Misunderstood Great Represssion

A few days ago I linked to this article by Niall Ferguson.

scifiben responded

Are you actually implying agreement with the four paragraphs cited above with no commentary?

I believe that Niall Ferguson is one of the smarter guys in his field. I know that I've yet to read anything by him that put me to sleep - he can write

Also, he's got that UK 'learned' accent going on, which does not hurt.

I do agree with main thrust of his article:

The delusion that a crisis of excess debt can be solved by creating more debt is at the heart of the Great Repression. Yet that is precisely what most governments propose to do.

Ben continues ..

Or are you counting on your readership remembering that "what is needed is state intervention" is always the wrong answer,

When have I ever written this?

Like this: The state serves a useful function by establishing a playing field with a set of rules that allow the citizenry to prosper. It is proper that the State expend capital doing this. It is on occasion needful for the state to intervene more directly to preserve the market.

My problem with our government intervening is that the people who run it seldom do the right thing. Noble ideals are a cover for doing favors for the well-connected.  They seek office is not to serve the country but to serve themselves.

Self-serving hacks looking out for number-one will not do the right thing for the public, only themselves.

My problem is not with intervention by the State but with the people doing the intervening.

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