those crazy latin commies - 11/10/08

From Buck on October 11th, 2008

In response to those crazy latin commies ; )


And this is from a larger essay on the financial crisis. Gives a bit of an idea of what's at stake with having a far left president and far left congress:

Finally, on top of the survey in uncertainty and collapse in credit we also have the specter of a damaging political response. One of the major factors compounding the Great Depression was that politicians moved to hinder free trade and encourage anti-competitive practices. The infamous Smoot-Hawley Tariff Act of 1930 was introduced by desperate US policymakers as a way of blocking imports to protect domestic jobs, but helped worsen the recession by freezing world trade. At the same time policymakers were encouraging firms to collude to keep prices up and encouraging workers to unionize to protect wages, exacerbating the situation by strangling free markets. The current backlash against capitalism could lead to a repeat, with politicians swinging towards the left away from free-markets. This happened after the Great Depression, it happened after the major recession of 1974/75 and I think it will happen again now. This will lock in the short-run economic damage from the current credit crunch into longer run systematic damage from anti-growth policies.

This is a bit of an old article, but still kind of applies. Scary to think that had Obama been president starting in January 2008 or 2007, there could very likely be the next depression by now (this links into the above quote):

No rush to respond though, just enjoy the weather and the ride and happy (Canadian) thanksgiving!

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