Saving Capitalism No Sure Thing as Statism Undermines Economy

**Saving Capitalism No Sure Thing as Statism Undermines Economy **

By Simon Kennedy, Matthew Benjamin and Rich Miller

Dec. 22 (Bloomberg) – What’s good for General Motors may not ultimately be best for the global economy.

The Bush administration’s $13.4 billion rescue of GM and Chrysler is a fitting finish to a year in which governments around the world expanded their role in the economy and markets after three decades of retreat.

The intervention comes at what may prove to be a steep price. Future investment may be allocated less efficiently as risk-averse politicians make business decisions. Whenever banks decide to lend again, they are likely to find new capital requirements that will curb how freely they can do it. Interest rates may be pushed up by government borrowing to finance trillions of dollars of bailouts.

“We’re seeing a more statist world economy,” says Ken Rogoff, former chief economist at the International Monetary Fund and now a professor at Harvard University in Cambridge, Massachusetts. “That’s not good for growth in the longer run.”

bloomberg.com/apps/news?pid=washingtonstory&sid=aDjmuEpDoctc

I admit – I read that title as “SATANISM Undermines Economy” :eek:

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This has happened almost overnight. We have a socialist president elect and the economy is being controlled by the legislative branch which is majority socialist. Not a shot was fired and they are now in control…well folks, we asked for it.:shrug:

The best way to destroy the capitalist system is to debauch the currency.

Vladimir Lenin

Yes, they’re all so socialist that they’re calling for the redistribution of land, mandatory public schooling, government-run health care (as opposed to government supported health care), and other positions that are actually socialist…

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