“Despite the unending failures of statist economies from the Soviet Union to Eastern Europe, to North Korea, to Cuba, and so on, liberals hold on to the belief that intellectual elites with good intentions can direct human activities better than the experimental process of human interface and competitiveness in free markets. Whenever the liberals’ theories fail, as they always do, they blame the failure on markets and greed. The disaster in affordable housing/subprime lending was a predictable outcome of liberal “do-gooders’” policies to increase home ownership.
Many independents and moderates who are skeptical of big government believe that we do need many regulations. They fail to recognize the incredible march of the regulatory state. They also do not understand that, as public choice theory has proven, “government bureaucrats are often motivated by destructive incentives. In my career, since 1971, I cannot think of a single additional regulation placed on the financial services industry that did not reduce the efficiency of the industry and lower the country’s overall standard of living. The only success stories have been deregulations (such as interstate branching).”
Excerpt From: John A. Allison. “The Financial Crisis and the Free Market Cure: Why Pure Capitalism is the World Economy’s Only Hope.” McGraw-Hill, 2013. iBooks.
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