Channeling My Inner Boudreaux

I just sent the following letter to the New York Times:

Mark Buchanan informs us that "Financial crises may emerge naturally from the very makeup of markets", but the example he gives indicates that the current crisis emerged from government planning the economy, not from markets operating naturally ("This Economy Does Not Compute," October 1).

Buchanan correctly notes that "too much easy credit can be dangerous," a predictable result of central planning and mismanagement of the money supply and interest rates. He therefore calls on government to "exert broader control over the leverage," to counteract the speed and eventual breakdown of the economy.

But this is like saying that if my foot is stuck on the gas pedal, I should balance this out by getting my other foot stuck on the brake. A wiser strategy might be to remove my foot from the gas pedal entirely, and then hand over driving to someone else. Driving the economy apparently isn't the government's forte.

Sincerely,
Micha Ghertner

Friends don't let friends manage the economy. Pass it on!

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Nicely done.

Nicely done.

Agreed.

Agreed.