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.
The concentration of surplus assets in the hands of the state is a negative aspect of anti-crisis measures in virtually every nation.
In the 20th century, the Soviet Union made the state’s role absolute. In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated.
This sounds somewhat familiar… hmm… I wonder where this is possibly being repeated? But let’s not actually listen to someone who has been there, done that. Economic wisdom from a former member of the KGB. Interesting.
(HT: Pink Elephant Pundit)