The free economy model sank the US economy
Posted by Stephen Cline on March 15th, 2010There was a time when anyone who spoke against free economy was labeled a communist and an anti-social in countries like the US. The great votaries of free economy said that public controls and governmental intervention in economic matters should be minimal. This is because of the fact that this is what was said to be the core of the success of the SU economy for so long. Now that the recession is on us and there are so many banks and financial institutions that have gone down, there are many who are blaming the same free economy that has gone out of control over the last few years.
The free economy model of the US economy meant that there were very little checks and balances and controls on banks and the financial companies which led to the sub-prime lending crisis that was the precursor to the whole recession. It is only now that the Us economy is becoming wiser and putting in place necessary controls on banks after much water has run through and so many jobs have been lost. While the votaries of free economy are much quieter now, you never know if they will actually remain quiet as these can be a very vocal set of people and economists.
Tags: free economy, US economy