Commented on an article at Fox Forum.
In reply to: “…‘Bush Legacy”–a country facing its second great depression!”
The only real fault I have with President Bush is his approach to this recession. By “abandoning free market principles to save the free market” he has committed the Hoover/FDR fallacy: Massive interventions to prop up asset prices.
If we stop intervening and get government taxing, spending, and regulation out of the way, the market would recover from this recession within 6 months. To prevent this from happening in the future we need to control our monetary policy better.
Inflation causes booms and booms cause busts. Stop inflating the currency and we have neither booms nor busts. In a truly free market we would have steady growth, steady to rising wages and steady to falling prices.
Sadly, I fear with Obama coming in, we’ll have even more intervention which will cause the recession to drag on for another decade much like Hoover’s and then FDR’s interventions caused the depression to drag on for a decade.
No comments:
Post a Comment