Monday, January 24, 2005

Keeping Government Out of Our Markets

I've written previously about Tyler Cowen's misgivings with the Bush proposal of social security privatization. Here, he makes the excellent point there is tremendous danger of governmental interference in the markets.

CFO magazine outlines the possibility of a market "bubble" caused by the artificial influx of dollars into the equity markets as a result of this legislation. This via the Mises Economics blog, which refers to all of this as the result of "distorted price signals".

So, there's plenty of reason to criticize the Bush plan. But the dems persist in pretending the current system is ideal, rather than attacking it based on it's economic merits. Of course, economic analysis has never been a weapon in the asses' playbook, and if they did try to apply it here, the arguement would inevitably end up with the conclusion that the program should be ended, and that, of course, is antithetical to all that they stand for.


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