The “Great Recession” as the Institutional and Ideological Residue of the Great Depression

Recomendo a leitura integral da comunicação de Steven Horwitz apresentada no “Symposium on the Economy in Crisis: Causes and Cures”, que decorreu em Março na Georgia State University.

Before talking about how we did get here, let me say a quick word about what didn’t cause this mess. Those who wish to blame greed for the crisis need to explain how and why it is that greed seems to causes crises only at specific times, despite the fact that it is omnipresent as a feature of human nature and market economies. As the economist Larry White has noted, if we saw a bunch of planes crash all on the same day, we wouldn’t blame gravity. It’s always there. Something else must be at work. I would argue that the key is the set of institutions through which greed or self-interest is channeled. That is, good institutions can cause self-interest to generate desirable unintended consequences, and bad ones can cause undesirable ones. So perhaps we should be looking at institutions and policy.

Those who wish to blame deregulation or the supposed “laissez-faire” philosophy of the Bush Administration are going to have to identify the deregulation in question, which will be a challenge given that the last deregulatory legislation in the financial industry was in 1999 under Clinton. These folks will also have to explain how the enormous growth in the Federal Register and domestic spending over Bush’s two terms reconciles with his supposed belief in laissez-faire. Answer: it doesn’t.

The two key causes of this crisis are expansionary monetary policy on the part of the Fed and a series of regulatory and institutional interventions that channeled that excess credit into the housing market, creating a bubble that eventually had to burst. In other words, the boom (and the inevitable bust) are the product of misguided government policy, not unbridled capitalism

Um pensamento sobre “The “Great Recession” as the Institutional and Ideological Residue of the Great Depression

  1. Mário Ferreira

    “Those who wish to blame greed for the crisis need to explain how and why it is that greed seems to causes crises only at specific times, despite the fact that it is omnipresent as a feature of human nature and market economies.”

    Excelente proposta de reflexão!

    A Georgia State University produziu e produz pensamento de excelência. De realçar que o Steven Horwitz é Professor de Economia da St. Lawrence University, outra Universidade que também sempre produziu conhecimento avançado e inovador.

    “Few discussions outside economics today ask serious questions about the role of the Fed and monetary policy, preferring more simplistic attempts to blame greed, laissez-faire, deregulation, or specific individuals or companies. No serious understanding of the current recession can afford to ignore the role of the Fed and we should be trying to save ourselves the mistakes made for decades after the Great Depression because we ignored the role played by the Fed in that disaster.”

    Outstanding!

    “Those who wish to blame deregulation or the supposed “laissez-faire” philosophy of the Bush Administration are going to have to identify the deregulation in question, which will be a challenge given that the last deregulatory legislation in the financial industry was in 1999 under Clinton”

    É aqui que a questão é verdadeiramente colocada e sabiamente respondida “Answer: it doesn’t”

Deixe uma Resposta

Preencha os seus detalhes abaixo ou clique num ícone para iniciar sessão:

Logótipo da WordPress.com

Está a comentar usando a sua conta WordPress.com Terminar Sessão /  Alterar )

Google photo

Está a comentar usando a sua conta Google Terminar Sessão /  Alterar )

Imagem do Twitter

Está a comentar usando a sua conta Twitter Terminar Sessão /  Alterar )

Facebook photo

Está a comentar usando a sua conta Facebook Terminar Sessão /  Alterar )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.