I plan on doing a video on this pretty soon. Let me know if there are any suggestions you have.
Capitalist vs Socialist: The Recovery (Rough Draft)
by Jacob Spinney on October 28, 2010 · View Comments
cap: Hello, I’m a Capitalist.
soc: And I’m a Socialist. Yayyyyy!
cap: Hey Soc, what are you celebrating?
soc: Didn’t you hear? The bailouts worked! We’re now in a recovery! *paper blow horn*
cap: Says who?
soc: The president, of course! What? You don’t believe your president? Are you a racist?
cap: No. I just think that we got into this mess in the first place, because the government distorted the economy and created moral hazards such as deposit insurance, fractional reserve banking, artificially low Fed interest rates, vast lines of credit from the Fed, legal intimidation, guaranteed loans, and so on that caused banks to loan out money they did not have to the wrong people who could not pay them back; something that could not have happened in the first place if not for these government-created moral hazards.
soc: But look at all of these good jobs numbers we’re getting now!
cap: It may be true that injecting subsidies and cheap credit into the economy will give it a short-term boost, just like it did for the housing bubble, but such boosts are artificial and unsustainable, just as the bursting of the housing bubble has shown us. And exacerbating these moral hazards even more and adding the moral hazard of bailouts to the list is not going to help the situation, but just make it even worse in the long run.
soc: . . . *paper blow horn*