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The market recovers on its own, because it reflects the wants and needs of the population. The most important thing the government can do is to maintain the sta

The market recovers on its own, because it reflects the wants and needs of the population. The most important thing the government can do is to maintain the stability of the currency as well as law and order. Whenever there has been a government response to market crisis, it is hailed as "the solution" in retrospect by the powers that be. The alternative history where the intervention never took place doesn't play out and can't be judged on its merits.

pbourke 6y ago
> The market recovers on its own, because it reflects the wants and needs of the population. What does a successful recovery look like? There are a large number of market-distorting policies in effect today. I'm talking about both policies that predate the crisis and those that went into effect during the response (these are mainly monetary - the fiscal ones seem temporary at this point). > The most important thing the government can do is to maintain the stability of the currency as well as law and order. To get to this point, the government would need to undo interventions that are currently in place throughout the economy. If the government were to "do nothing" (really, "change nothing") starting today, then this would in no way be some kind of "free market" like you're implying should exist. Do you think that the government should undo interventions across the economy? Or apply new ones? Or leave the existing alone? I'm genuinely curious
- gridlockd 6y ago
  > Do you think that the government should undo interventions across the economy? It can't undo them, so that point is moot. The government shouldn't have been injecting so much liquidity that wasn't really needed for all these years - but now is certainly not the time to remove that liquidity. The big question is, is the dollar going to collapse under that weight? If so, then there's nothing that can be done now that makes a difference, so we might as well stay course for the time being.

pbourke 6y ago

> The market recovers on its own, because it reflects the wants and needs of the population. What does a successful recovery look like? There are a large number of market-distorting policies in effect today. I'm talking about both policies that predate the crisis and those that went into effect during the response (these are mainly monetary - the fiscal ones seem temporary at this point). > The most important thing the government can do is to maintain the stability of the currency as well as law and order. To get to this point, the government would need to undo interventions that are currently in place throughout the economy. If the government were to "do nothing" (really, "change nothing") starting today, then this would in no way be some kind of "free market" like you're implying should exist. Do you think that the government should undo interventions across the economy? Or apply new ones? Or leave the existing alone? I'm genuinely curious

gridlockd 6y ago
> Do you think that the government should undo interventions across the economy? It can't undo them, so that point is moot. The government shouldn't have been injecting so much liquidity that wasn't really needed for all these years - but now is certainly not the time to remove that liquidity. The big question is, is the dollar going to collapse under that weight? If so, then there's nothing that can be done now that makes a difference, so we might as well stay course for the time being.