There was a great article in the Wall Street Journal in January about Ayn Rand’s epic book: ‘Atlas Shrugged’: From Fiction to Fact in 52 Years. With the weight of the Emergency Economic Stabilization Act, the government is about to show that it can be crushed under its own weight. An especially illuminating quote from the article:
“For the uninitiated, the moral of the story is simply this: Politicians invariably respond to crises — that in most cases they themselves created — by spawning new government programs, laws and regulations. These, in turn, generate more havoc and poverty, which inspires the politicians to create more programs . . . and the downward spiral repeats itself until the productive sectors of the economy collapse under the collective weight of taxes and other burdens imposed in the name of fairness, equality and do-goodism.”
Not that I don’t want to solve the economic crisis, I do; but more regulation isn’t the answer. Capitalism is. The businesses that couldn’t manage themselves to a profit or survival should be let to fail, even if it is a bank, brokerage firm or investment bank. Or even an automotive company. More regulation, with more Federal agencies, who can’t get out of their own way, isn’t the right answer either. The SEC was alerted to Madoff’s activities many times; but, ignored it each time (or investigated and decided to take no action). Do we think a new Federal agency or new regulations will miraculously enable the Feds to make the right decision at the right time? I am skeptical, to say the least.
If you haven’t read Atlas Shrugged, please do and then let me know what you think about it!