Tag Archives: global economic crisis

Who said it? (Updated)

Regarding the global economic crisis:

We must not revert to isolationism and unrestrained economic egotism… Excessive intervention in economic activity and blind faith in the state’s omnipotence is another possible mistake. True, the state’s increased role in times of crisis is a natural reaction to market setbacks. Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent… In the 20th century, the Soviet Union made the state’s role absolute. In the long run, this made the Soviet economy totally uncompetitive….

Nor should we turn a blind eye to the fact that the spirit of free enterprise, including the principle of personal responsibility of businesspeople, investors and shareholders for their decisions, is being eroded in the last few months. There is no reason to believe that we can achieve better results by shifting responsibility onto the state.

And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing.

Who is warning the world of the dangers of statism?

UPDATE: Commenter “Time for a Change” wins the challenge. It was indeed Russian Prime Minister Vladimir Putin, speaking at the opening ceremony of the World Economic Forum in Davos, Switzerland, January 28, 2009. After stating (as quoted above), “In the 20th century, the Soviet Union made the state’s role absolute. In the long run, this made the Soviet economy totally uncompetitive,” he added, “This lesson cost us dearly. I am sure nobody wants to see it repeated.”