Capitalism is not too important to be left to capitalists. It has to be left to them. Politicians simply do not understand. They are contaminated by a desire to redistribute, and to regulate, to keep large constituencies of non-productive voters happy. No politician has been more ruined by this, or caused more ruin, than Mr Brown: and this week he was still at it. In his drivelling speech on “morality” on Tuesday (the absurdity of which would have been exceeded only by Lord Rumba of Rio delivering it) he castigated people for taking risks. Capitalism is based on risk. The reward for risk is profit. The punishment for bad risk should be bankruptcy. Mr Brown wishes to avoid all such extremes, which is why he rails against capitalists, and bails out pointless banks with our money. Let him bask in his “triumph” while he can, for he is very near the end of the plank.
Roosevelt’s New Deal failed because it hindered people from helping themselves. This welfarist event this week risks making the same mistake on an international scale, with its £1 trillion slush fund for wrecked economies. The politicians have left the stage, thank God. Now let us hope they stay off it for as long as possible, and let the people who can sort out this mess get on with doing so whatever the risk entailed.
(via Alan Sullivan)