Tuesday, January 20, 2009

First Blush

Apparently agreeing with blogger bobn, President Obama's speech suggests he favors financial re-regulation:
Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control -- and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart -- not out of charity, but because it is the surest route to our common good.
At OpenMarket.org, Iain Murray sees some positives, but warns of the limits of government:
The market has self-limiting devices to prevent it spinning out of control, but too often government regulates against them. It can also be spun out of control by government pushing it too hard in the wrong direction, as happened here, both in the UK and US. I do have to agree with him on opportunity, however. Opportunity is at the base of resiliency and adaptation to circumstance. What we cannot do, on the other hand, is guarantee opportunity, for that by its very nature reduces resiliency. Instead, we must have institutional reform to allow people to make the most of what they have, whether their resources be modest or ample. Property rights, rule of law, the market, many others -- all are institutions that allow opportunity and which government has weakened.

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