I’m not going to use the phrase economic crisis because we’re not in one. Everything is fine. The only reason we’re in a recession because we decided to call it a recession which then scares everyone and it becomes a self fulfilling prophecy. I would however like to throw a few ideas out there on the current economic climate.
Government’s all over the world are in the middle of nationalising banks. Like everywhere. Iceland’s Glitnir, which I’m told was a rather large bank, has recently been nationalised. Here in the UK, Bradford & Bingley have just gone. We’re still bailing out Northern Rock. Me, my tax money is bailing them out.
Point is, this isn’t how a free market capitalist economy is supposed to work. There shouldn’t be government bail outs, a free market only really works when the market is free. Companies go down, other companies take their place, circle of life and all that jazz.
Surely the way to encourage economic growth in such times is to increase the capitalist freedoms and reduce the socialist state rather than the current trend of increasing the socialist state with government bailouts and suprise taxes. Slash taxes, slash minimum wage, make it more profitable to actually generate profit than go cap in hand to the government.
We’re all moaning about these huge salaries the city big wigs are getting paid then coming to the tax payer for the bail out. Who can blaim them? That’s just common sense. They don’t lose it all when their company goes down to the toilet, most boards are remaining intact when the company is nationalised. Who wouldn’t take up that offer?
If we’re going to this whole capitalist economy (which we are, because it works, get over it) we should just get on with it. The world economy well go down the pan if government’s don’t intervene. But it will be back again. Bigger, better and even stronger than before.
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Tags: banks, capitalism, economy
This entry was posted on Tuesday, September 30th, 2008 at 12:59 pm and is filed under Religion & Politics, Thoughts. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.