Tuesday, October 14, 2008

Correction Please

The New York Times today (in Intervention is Bold But Has A Basis In History ) quoted Nancy Koehn, a historian at the Harvard Business School, saying,"'The goal [referring to bailout activity -PA] is to get the engine of capitalism going as productively as possible, ... Ideology is a luxury good in times of crisis.'”

Ideology according to my Random House Dictionary is "the body of doctrine, myth, belief, etc., that guides an individual, social movement, institution, class, or large group."

Far from being a luxury to be reliquished, ideology is absolutely vital in a crisis. In hard times people are forced to make hard choices between A or B that reveal their true priorities and values. A crisis simply reveals ones true ideology.

What Nancy Koehn has just revealed is that she does not believe in the constitution, liberty, or the free market. To her these are luxuries. Her ideology is socialism, statism, and government managed lives. Far from being relinquished as a luxury in this crisis, it is being followed exactly.

Neither should the phenomenon on Wall Street today be confused with a free market economy. It much more closely resembles a government sponsored monopoly in debt tokens that also happen to be the government mandated medium of exchange.

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