January 6th, 2009

Cartoon via Ritholts / Slate
Food for thought: One of the principles of free-market economy is a non-interference by Government, in other words Government shouldn’t regulate the market, it should let it sail its own course.
So, the recent US bailouts were totally against the free-market principles that the US government holds fast to. In 1997, during the Asian crisis, when Malaysia exercised the same Government intervention to save the country’s economy - bailing out some businesses - US Government was against it.
History repeats, isn’t it? Now we see, US doing bailouts after bailouts… and the principles are nowhere to be seen.
When Bush was reminded about the free-market principles, here is what he had to say:
“I’ve abandoned free-market principles to save the free-market system,” Bush told CNN television, saying he had made the decision “to make sure the economy doesn’t collapse.”
Bush’s comments reflect an extraordinary departure from his longtime advocacy for an unfettered free market, as his administration has orchestrated unprecedented government intervention in the face of a dire financial crisis.
“I am sorry we’re having to do it,” Bush said. source