Sunday, February 08, 2009

Crash Landings: Paul Krugman's Depression Economics

By Bernard Avishai

"We sometimes, for example, hear it said," writes John Stuart Mill in his Principles of Political Economy, "that governments ought to confine themselves to affording protection against force and fraud"; that people should otherwise be "free agents, able to take care of themselves." But why, he asks, considering all the "other evils" of a market society, should people not be more widely protected by government--that is, "by their own collective strength"? Much like Mill, Paul Krugman likes capitalism's innovations but not its crises and thinks that government has a duty to facilitate the former and protect us from the latter. He doubts that citizens will get much protection from moguls--or from most economists, for that matter--unless we trouble to grasp how the whole intricate game works, so that our legislators will form a consensus about how to regulate it.

... more in The Nation, with all that Liberal media bias (you can't find anywhere else) after the click.

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