My first article published at American Thinker

The iron law of bubbles


But this same infatuation with talent can be attached to more than money; it can be attached to power.  With capitalism struggling to recover from yet another smackdown bubble we seem inclined to somehow believe that academics in political power will yield better results.  The same uncertainty that plagues the financial markets also plagues the political environment. The biggest difference is that a financial bubble will be brought down much more quickly. Bad political solutions become institutionalized and linger for decades. In many ways the current financial mess was born from political solutions imposed in response to our previous bubbles.

Our political discourse is largely about the balance between the need to smartly regulate a very efficient but imperfect market, and the desire to merely replace financial power with political power. It often means the balance between individual rights and the interests of the collective. While the economic self-interest of capitalism is suspect after the bubble is burst, we often suffer more from the political self-interest that seeks to correct it.  Our most oppressive laws are often the ones designed to protect us from our own stupidity.