If recession is not the problem…

One of the most outstanding advocates of the free market during the last ten years has been the Swedish Johan Norberg. Since he published In Defense of Global Capitalism, a best-seller of the new liberalism, Mr Norberg argues in every forum about the need to free and free the market forces. As liberalisation does not work and manages to a big financial and economic crisis, this prophet tries to give an explanation which does not deny the liberal creed. According to him, 

«As the Austrian economic school taught us, the recession is not the problem, the boom was the problem and all the mistaken investments that happened then because of cheap money. We won´t be able to start again and see new companies start expanding and hiring until bad investments are terminated and capital is transferred from the unsustainable to the sustainable».

Johan does not want to recognize that the real problem is the illusion of thinking that the liberal focus would warrant an eternal prosperity thanks to the free and intelligent decisions of the economic man. The free and intelligent decisions of the economic man have been responsible of the boom and the subsequent crisis. I do not understand why the market forces are going now to make sage decisions when in the last decade they have been making a lot of mistakes. The difference was that before the crisis, people won disgusting amounts of no decent money. The best for them, but no for everybody. Now they have caused the worst for all, including them. And who is rescuing? The dammed public sector.