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Reagan Was Wrong: The Nine Most Terrifying Words Are, "I'm a Libertarian and the Market Will Save You"

Original post made by Harris, Downtown, on Jun 29, 2010

Article link: Web Link

by Mitchell Bard

"You would think from listening to the rhetoric that we have two choices in this country: Either you adopt the right's notion of deregulation and an unfettered free market, or you are a socialist. There is no in-between. Which is, of course, patently false, but also maddeningly ignorant of recent American history. Taking the financial industry as an example, after the election of Franklin Roosevelt, Congress quickly enacted legislation, like the Securities Act of 1933, the Banking Act of 1933 (Glass-Steagall), and the Securities Exchange Act of 1934, meant to curb the excesses of an unfettered financial system, which had led to the stock market crash of 1929 and the depression that ensued. And for the next 45 years, the country was able to avoid any mass financial collapses.

Then, beginning with Reagan, and continuing through George H.W. Bush and Bill Clinton, and reaching its peak with the ultimate deregulation messiah, George W. Bush, the government took down the post-Depression financial regulation structure brick by brick, following a mantra that deregulation helped the market to function freely, and a free market will produce the best results.

What did we get? The savings and loan scandal, the Enron-induced power outages in California, corporate fraud (Enron, etc.) and, ultimately, a financial industry run amok (arcane financial instruments, insanely risky investments that banks profited from regardless of their success, and credit rating agencies handing out AAA ratings like candy to keep customers, just to name some examples), all leading to a near financial collapse that plunged the country (and the rest of the world) into a job-sapping, deep recession."

Comments (3)

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Posted by Its NOT a free market!
a resident of Another Pleasanton neighborhood
on Jun 29, 2010 at 9:29 am

Inform yourself. The "savings and loan scandal" was not a free market debacle. The central problem with most of these meltdowns was DUE TO GOVERNMENT INTERVENTION!

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Posted by HHR
a resident of Another Pleasanton neighborhood
on Jun 29, 2010 at 9:38 am

Amen Harris,

But don't expect Republicans to ever see the truth. They are blind on this issue!

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Posted by radical
a resident of Another Pleasanton neighborhood
on Jun 29, 2010 at 9:42 am

haha hilarious how the blogger cites the financial collapse and the oil spill -- two great examples of government oversight have utterly failed us
& for the financial collapse (and the oilspill thus far) the US government response have UTTERLY FAILED us

ya got two strikes on ya, go for three oops health care


and as if to argue with the ump, this clown cannot help himself but to go after tea partiers as birther angry racist bla bla bla

another loser huffpo blogger trumpeting government power and more government power, better and better

Sorry, but further commenting on this topic has been closed.

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