I will not try, in this brief "diary" to necessarily paint of institutional conditions from economic cycles, unflinching with all theoretical on the causes of the crisis detalierile. Here, now, worries me more radical negation of capitalism, with a vast arsenal of myths, errors and bad faith. Beyond the economic theory of the business cycle, an authentic "profession of faith" to oblige, I think, the Economist today perhaps more than ever, the logic rigor and restore the truth about capitalism, an economic system of free market.
Is the crisis! How do we manage it?
Simple, we can blame it on capitalism! Many of the ills of the world today are attributed to, postmodern, free market: If pacifistii see wars as a product of capitalist imperialism, the dictators of the last century have condemned capitalism on the grounds of … pacifism "bourgeois". More and more people bring poverty on behalf of capitalism, while it accuses, contradictory excesses … materialism. All capitalism would be the one that journalists win lawsuit against family values and inspire the nastiness.
Few have left those who condemn capitalism not for something specific.
Perpetual Park but more bitter today as ever, is the myth that economic freedom and capitalism are the causes of the current crisis. Recent articles in The New York Times, for example, are condoning disaster economy "anchored" in the laissez faire: "presumption of guilt" flood folk mythology woven around capitalism: "American culture celebrates laissez-faire capitalism as the economic ideal," "free market" economic crisis is guilty of globalizata ". All recently, Newsweek Magazine assures us on the cover that "today, we are Socialists," and the end of capitalism became relentless.
Nothing new under the Sun, if we think at what prophecies associated with the secular market collapse invoked, defeated by the burden of economic cycles. Moreover, in most economics textbooks (market!), one can hear today more or less subtly, socialism, inescapably: "economic cycle is a normal, natural evolution, economic downturns", meaning "rabufnirea's natural internal contradictions of the market". Here, predicted the collapse of capitalism, gradually disbanded from the inside, the downturn becoming more common and more onerous.
Two are, however, problems of such rhetoric. First of all, the american model, "capitalism" occidental generally doesn't have virtually nothing in common with the free market. Secondly, in terms of solutions, Governments have abandoned any trust reserve force autoreglatoare the market, hence the inclination of the administration of the same "medicines" that actually triggered the disease.
The idea that a Western economic system would, at present, one capitalist "free market" is as absurd as some radical nationalists claim that the economic policy of the Soviet Union was in its last years, one laissez faire. But the presumption of guilt of capitalism has the effect of "Bulgarian snow" in favor of the tavalugului aware. For example, in America of the 1930s, President Hoover was accused of "colaborationism" with laissez faire, though his policies were completely anticapitaliste. Their purpose was to prevent a reduction in wages. But it is precisely the reduction in salaries would be restored, somehow, the demand for work and would have weakened since the massive unemployment. Later, by invoking unemployment drastically even springing up Hoover's policies, opponents of capitalism and have secured a new wave of welfare States through inspirational Socialist policies of the New Deal of Franklin D. Roosevelt.
The onset of democratic republicanism era, hiring in the two world wars, and especially the development of social security, introduced during the great depression, led to the increase of the size of Governments. In recent decades, in France and Germany, for example, the share of government expenditure in GDP has surpassed 50 percent of GDP in a systematic manner. We can say, as we do with "market economy", when over half of the new wealth created annually is distributed, arbitrary criteria, on Government policy?
"Guilty without blame in the sky to make the light"
The debates on the agenda of the crisis is the gateway, indeobste, in the combination of consequences-solutions. Is devoid of meaning, but any attempt to "tackle" a crisis-as triumfalist pronounce official reports-in the absence of any evidence of discernment on the fundamental anatomic causes I would say, of the business cycle.
Recent history of the crisis, in short, looks like this: over the last decade, RTD policy-monopolies of the world's main currencies you proceeded to reduce interest rate and monetary expansion, convinced that this will unlock the barriers to economic prosperity. The origins of the current recession should be searched in the monetary expansion because of generous Federal Reserve System-the Central Bank of the United States. From 2001 until 2008, the FED has invaded with waves of financial markets, which have been leaked in artificially cheap credit and, consequently, economic developments in the cautious investment failure. In the past five years, interest rate monetary policy has evolved, in real terms, in the band zero and even negative. The same budget money policy was adopted and of the Bank of Japan, which has spilled into subordinated interest money with banks rated zero. In the same way, the European Central Bank sought to blow in the webs of riddled Europe's economic growth reduce interest rate monetary policy for several years, at about 2%.
In the u.s., banking system and regulations-stimulated type welfare States-expanded credit to nesabuit, the broader categories of all borrowers, with Government-backed mortgages under the slogan "a home for every american." Extremely low interest rates pursued by the FED have destroyed the incentive to save and opened the valve of consumption and borrowing.
Therefore, the responsibility for economic cyclical returns just the monetary authorities, which take the reins of monetary system and frees the system periodically, injections of liquidity. But as in the case of sports doping, the illusion of prosperity is of short duration, until the "body" of acute economic need felt to clean wounds genre speculative bubble.
Here the essence of healing crisis, whereby salubrizata is in fact a distorted economic structure through fictitious capital artificially whelmed up from tiparnitele-scriptural and real-of central banks. The "market" has not only to respond to incentives, to exacerbate the consumption and savings, in indatorarea damage and healthy capital accumulation.
From the presumption of guilt to the verdict of economy
But what does it mean, and how does capitalism revolve rotitele? Capitalism is the system of liberty that starts and ends with the essential institution of society-private property. Simple rundown of free market Anatomy looks understandable why capitalism is not "wild" or "domestic", but only institutional system of private property and private law rules.
The market is not driven by someone, but only the rule of private property. It signifies a participative system of society in which each is respected because nobody personally favored. "Wild" can't be than theft, expropriation of property, aggression and exploitation of legitimate and, of course, that perennial fashion Park for the transition, with the State's business pace "auction with dedication". What is "wildly" may not be the least bit capitalism and, thus, no economy. Not capitalism, but socialism actually is wildly, because socialism was born through violence, compulsion and the nationalization of private property, which killed tens of millions of people in the name of a utopia it efficiently to the contrary flesh.
Private property was not invented by anyone, it exists through the very essence of the human nature. Thus, the market economy is not something accidentally or artificially, which can be replaced by any other mode of action. I'd say, in fact, that the market economy is the natural condition of modern society. "Natural" cannot be only free market as spontaneous social interaction system running smoothly, in the harmony of social cooperation, and free price mechanism leads a productive resources, as well as the "invisible hand", to the most valuable uses. "Artificial" is unlike, government intervention, that induces economic imbalances and syncopation in the allocation of resources.
Guilty is the "market"? I don't know this person! The market is not an entity, one that would adopt decisions appropriate to the times. The "market" is not just a label for the voluntary trade of private property rights. Any kind of "automatic" or "anonymous" not acting "market mechanism". The only factors that "conducting" the market and cause prices are the actions of men; free market means people, Ignacio, Palmer, Machen, etc., why follow legitimate purposes and using economic means, deliberately, in order to achieve their goals.
Market system tends to give everyone what he creates. The phrase "after the deed and reward" is the one that guides human actions on the market. Therefore, capitalism cannot ethically pica in the damage to the famous Socialist policies-"from each possibilities, all after needs". In Exchange, the payoff of each is the result of providing its services. The moral is that, if you want a larger income, need to socotesti how you can help more than others. Bill Gates, for example, won a lot of money for that by his technical and entrepreneurial talent, has developed a product that radically improved the lives of billions of people.
Although capitalism is an economic system that has been built over the Western civilization and prosperity, all Western Governments ' policies may be guided, at present, after total anticapitaliste ideas. The ultimate sin of etatismului is the belief that Government can solve any problems of the people.
The problem is that immeasurable generosity, her "social engineer" in the sphere of political power, economic laws interfere with the natural order of a realities governed by universal laws. Any attempt to turn the world without taking into account the laws of the market, the rarity of the coin, etc. will have as successful cat would have a Government decree that would force people to fly. And when they force Governors economic laws limits a result means conflict and exploitation, poverty and spiritual clutter. Therefore, even if only in the plan or morally, "presumption of guilt" over the crisis has to go beyond the "invisible hand" of capitalism, "the" visible hand of the State monopoly of coinage and aware.
