A New World Order We Can Live With

The story in the Sydney Morning Herald begins as follows: KEVIN RUDD has denounced the unfettered capitalism of the past three decades and called for a new era of "social capitalism" in which government intervention and regulation feature heavily. In an essay to be published next week, the Prime Minister is scathing of the neo-liberals who began refashioning the market system in the 1970s, and ultimately brought about the global financial crisis. I have to agree, at least in part. The economic experiments of the past 39 years have, indeed, brought us to this current crisis. There is no question of that. With currency tied to nothing more than the promise that the government won’t print too much of it, there are few, if any real limits on things. Rudd’s answer for that: Regulate! His notion is that heavy government regulation can curb the extremes while allowing a robust free market to exist. My question is this: How? The Main Ingredi... [Read Full Article]