David Stockman’s recent column is hitting every corner of the internets lately: Sundown in America. I would urge everyone to read it, but be wary of these three problems with it:
- Stockman calls us to raising taxes, where a better solution (since raising taxes is not a solution, as revenues will never get us close to where we need to be) is to repudiate the debts and slash programs, taxes, & regulations deeply and immediately.
- Stockman tells us that the economy recovered from the Great Depression by way of WWII. This is a common myth that was single-handedly refuted by Dr. Robert Higgs. Look into some of his work, if you are interested.
- Stockman perpetuates the myth that Glass-Steagle is necessary (and its nonexistence was a major factor in the 2008 crisis, which is half-true). In fact, the half of Glass-Steagle left in place by regulators was the reason that systemic risk increased within the banking system, as it encouraged moral hazard by assuring a Fed bailout. Further, no other countries have been forced to carry a law like this on their books (see: Canada), and none have had problems like we have…
Here is a video of the man with his thesis, after the column exploded. His assertion that Bernanke is the most dangerous man on the planet (or at least a figurehead thereof) is completely correct. When I was asked the other day who the most powerful man alive is, I think Obama would be at least several positions behind The Bernank:
While you are at it, Capitalism: A Hate Story is a column worth a good once-over as well. Enjoy the truthiness…
Bonus: The Death of American Business