Capitalism and the Current Recession

Capitalism and the Current Recession

We keep hearing about the role of capitalism in the onslaught of the economic downturn of 2008/2009. The media parrot the voices of the Left which has succeeded as a result, in making political gains.

But the facts show otherwise. Capitalism does not cause recessions or depressions. It never does. Adjustments in the economy are not a failing of capitalism. In fact, when they occur under socialism, capitalistic methods are always undertaken for adjustments under that system.

The economic problems we have had are caused by our regulators, such as the Treasury and Federal Reserve, whose policies in attempting to control the economy often, if not always, do the actual damage. Currently, it can be the easy money policy that created the mortgage bubble and then the ill-planned bailouts that followed what would have been recoveries from normal economic down-cycles.