Is this the end of American capitalism? As financial panic spread across the globe and governments scrambled to contain the damage, reality seemed to announce the doom of U.S.-style free markets and President Bush's ideology. But this is wrong in two ways (...the bold is mine...). The deregulation of U.S. financial markets did not reflect only the narrow ideology of a particular party or administration. And the problem with the U.S. economy, more than lack of regulation, has been government's failure to control systemic risks that government itself helped to create. We are not witnessing a crisis of the free market but a crisis of distorted markets.Also, it would be interesting to see what's gonna happen to Hugo Chavez's oil-financed socialism as the world (ironically, capitalistic) economic growth decreases and brings the country's oil demand and price down.
Thursday, October 23, 2008
Capitalism is Dead. Not.
For those who wished that capitalism would die due to the current US financial crisis --and socialism to arise--, this editorial from the usually liberal (in US politics term, that is, a left-leaning) Washington Post, may come as a bugbear. The first paragraph reads: