Recessions Start and Continue with Dumb Political Thought

Recessions are bound to happen in normal economic cycles. They are not the fault of capitalism. They are remedied by free markets. Only those who do not understand free markets act in a way that prevent normal corrections from being made. And when normal corrections are not permitted, you get prolonged recessions and even depressions.

Stupid politicians force the hands of economists who should know better, and thus we get bailouts instead of normal corrections, which may include self-correcting bankruptcies. What is worse, however, is the ongoing poor psychology that persists among the population, as the result of political machinations.

That, along with knee-jerk higher taxation to make up for lower government tax revenue, adds to the bad psychology that sustains these severe conditions.

And when you are really a dumb politician you add legislation the majority of the public does not want, at a cost that imposes even more enormous taxation, plus budget deficits that cannot be reigned in, short of raging future inflation.