Tuesday, September 30, 2008

The Death of Capitalism

Daniel Gross writes:
Just as happened in 1932, it's possible that the Republicans' incompetence and bullheadedness in managing a financial crisis could lead to Democrats controlling both the White House and Congress.

This sentiment should strike fear in the heart of every free market advocate who reads it. Before the Great Depression, America had a classical free market economy. America was almost a libertarian utopia. After the Great Depression, America slowly became a socialized paternalistic big government nanny state.

If the financial crisis gets worse, and the Democratic party increases its political control, capitalism as we know it may not be able to survive. Saving capitalism should be the goal of all those who ideologically believe in free markets. If that means a bailout needs to be passed, then so be it.

Update: Megan McArdle says it better than I do:
It is worth noting, in answer to the libertarians who are wary of government intervention in the economy, that if there is a serious crash, we will get even more government intervention in the economy--and intervention that is much less to our liking. That cost has to be weighed in your assessment.