Saturday, January 31, 2009

Only the market can save us from the crisis

Sound advice from Tesco chief Terry Leahy, who notes that despite current troubles, the market has delivered more benefits to all, than any other economic system.

Thus, it should not be abandonned by governments.

The power of the consumer and the benefits of the free market are often taken for granted. It often falls to others, who have witnessed the perils of excessive centralisation and planning, to remind us of basic truths.

One such person was Vaclav Havel, the First President of the Czech Republic.

He wrote: "I have always known that the only economic system that works is a market economy. This is the only natural economy, the only kind that makes sense, the only one that leads to prosperity, because it is the only one that reflects the nature of life itself.

Indeed, I might add that the current troubles we face in the world stems not from too much capitalism, but rather a lack of it; the problems being caused by too much government intervention, such as telling banks to lend to those who could not repay.

And can anyone identify a successful planned/ socialist economy? Come on then! Let's hear your suggestions of socialist utopias!

1 comment:

Heine said...

Vaclav is a legend. Remembering how stuffed the Czech Rep was under communism. He is a great visonary leader :) No wonder the lefties were dreading the Czechs having the EU presidency this year!