Being “pro-market” means being pro-innovation, pro-competition, pro-transparency, pro-rule of law, pro-hard work, pro-efficiency. Being “pro-business” can on occasion mean these things also but typically it does not.
It’s been an interesting if not fun ride up in the markets. Through a 6-year economic slowdown stock markets have rallied and rallied and rallied. Everyone assumes that the Fed is backstopping the market, that it has to for political reasons. So people have piled in even though earnings and economic indicators have been generally lackluster. Sounds almost like “house prices never go down.”
But not quite.
DIY. DIY. DIY.
Once the state gets out of the way people can start finding solutions to everyday problems which were once thought only the purview of the government.
In one respect Marx was right. Economies do evolve. They do develop. But absent the religion of the “state” economies tend to evolve toward solutions. That’s what markets are all about.
The “fairy dust” has kept things going for a long time. Will it continue to work? How long? It won’t work forever. Did it just stop working?
Next week will be fun.
More thoughts on the Pope and capitalism.
Capitalism (free markets and free prices) puts power in the hands of everyday people. Crony capitalism (a form of socialism) puts power in the hands of the privileged. The Pope appears to miss this very important point.
The Fed’s latest stock market bubble is at risk of blowing up.
I have to say that I was saddened by Pope Francis’s recent assertion that “rampant capitalism” is a source of many of the world’s ills.
The answer I believe is, yes, absolutely. Frankly I think that some people in Washington were hoping for a crash before now.That they haven’t gotten one has lead to significant consternation.
3D printing is revolutionizing manufacturing already. From food to guns, the old business models are being undermined. Information is spilling out all over the place, information one can now hold in one’s hands.
I have often asked myself this question.