Harper Blames “Unfettered Capitalism” for Economic Crisis

October 19, 2008 | In Business, Politics |

Just before last week’s federal election, I predicted that Canadian Prime Minister, Stephen Harper, would fall short of his coveted majority, but still win more seats than he deserved given his lack of principle during a campaign that he himself triggered

Now, with a stronger minority government (143 seats), Harper is doing more of the same, claiming that “unfettered capitalism” is the cause, and more international government the solution, of the current global financial crisis.

Does he really believe this? I prefer to think not (especially given that I voted for the guy). But he’s going along with the crowd of misguided European leaders who believe that “laissez faire is finished,” and the public will be better protected by more government intervention in financial markets.

Austrian economists, who have been predicting a major economic correction for some time now, know that it is over-regulation of the macroeconomic sphere that has caused most of the financial problems of the last 100 years. They know that when government inflates the money supply and suppresses interest rates, people will borrow more, save less, and make unwise investments that they can’t really afford.

The naïve (and somewhat socialist) idea that everybody “deserves” to own a home regardless of their financial situation, and that government has some natural power to print money out of thin air to help them achieve this end, is a recipe for recession.

And yet, politicians continue to pretend that they can solve the problem with bigger government and more regulation, not to mention foolish and unsustainable bank bailouts.

Too bad we don’t have a political party in Canada that will stand up for economic reality.