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The article is correct when it says that Greenspan did not believe in totally rational or efficient markets. But Greenspan clearly stated that he believed that
by Nokinside 8y ago
The article is correct when it says that Greenspan did not believe in totally rational or efficient markets.
But Greenspan clearly stated that he believed that laissez-faire capitalism was the optimal option for democratic society even when it causes some Irrational exuberance.
Greenspan was Objectivist who had close relationship with Ayn Rand until her death. Allowing market irrationality to select who wins and loses was not against his political ideals. He believed that better are people being taken advantage by the masses in democratic society.
Greenspan politicized his office and always advocated laissez-faire. He was acting very rationally based on his ideology.
- gbacon 8y agoIt has been said that Americans speak the language of Jefferson but live in the system that Hamilton advocated. Likewise, Greenspan while at the Fed may have occasionally mouthed vaguely Objectivist sentiments that echoed his earlier association with Rand, but he was, after all, head of a quasigovernmental body that creates money out of thin air. By this point in his life, Greenspan’s ideology was living it up as a member of the D.C. elite. To see him advocating laissez-faire, read his essay “Gold and Economic Freedom”[0] — that comes off nothing like Chairman Greenspan. [0]: https://www.constitution.org/mon/greenspan_gold.txt https://www.constitution.org/mon/greenspan_gold.txt
- Nokinside 8y agoObjectivists were not uniformly against fractional reserve banking. At least objectivists had the idea that laissez-faire benefits the few "the new elite", those who deserve and did not have the weird idea that laissez-faire lifts all up.
- gbacon 8y agoThere is a difference in kind between fractional-reserve banking and propping up an entire system of banks with a central bank deemed the lender of last resort and that has the special privilege of issuing newly created fiat money and credit. I’m no Objectivist, so what do you mean by “the weird idea that laissez-fairy lifts all up”?
- dikkechill 8y agoNice to mention the link to Objectivism and Ayn Rand. I can highly recommend Adam Curtis's 'All Watched over Machines of Loving Grace' docu [1], which goes into that relationship and has a great scene of pong! [1] https://en.wikipedia.org/wiki/All_Watched_Over_by_Machines_of_Loving_Grace_(TV_series) https://en.wikipedia.org/wiki/All_Watched_Over_by_Machines_o...