Friday, 14 November 2008

Hy Minsky Was Right and George W. Bush Isn't: The Market Doesn't Work

So George W. Bush says it’s not time to do away with capitalism, eh?

"History has shown that the greater threat to economic prosperity is not too little government involvement in the market, it is too much government involvement in the market," Bush said to a crowd of financial types in New York yesterday. "Our aim should not be more government," he added later, "it should be smarter government."

What poppycock! This morning as an antidote I offer links to articles on the thought of economist Hyman Minsky who held that unregulated markets will always produce instability and crises. Sure, the market will “correct” itself, but the cost, as we are seeing, is absolutely horrendous. Far better to regulate in order to ride herd on excess.

As The Nation headlines its recent article about him: “We’re all Minskyites Now.” All, that is, except for George W. Bush and his friends.

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