Market Regulation

Conventional wisdom has it that the excesses of free markets and lack of regulation caused the financial crisis. Isn’t it odd that, in financial circles, the least regulated entities were the least damaged while the most regulated were the most damaged? Hmmm. This should make anyone suspicious of the conventional wisdom. Thomas DiLorenzo challenges the conventional wisdom and tosses in an interesting history lesson on the side. Government suppression and regulation of free markets has a long history in this country. As you might expect, the winners from these exercises are friends of politicians while the losers are average Joes and Janes. Politicians have a strong incentive to tell a different story, which they do. The reality is that you lose and they win. President Obama is just the latest to honor this grand tradition.

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