One of the central dynamics that made Britain great for so long still seems to be working. Financial and economic crises recur in healthy capitalist economies. When these crises come, some countries that have only reluctantly embraced a capitalist system (and usually done so poorly and half heartedly), see the crisis as proof that capitalism is a flop, and lurch toward “alternative models” that generally lead to stagnation and the capture of the state by rent-seeking elites spouting empty populist slogans. Think Argentina. Think Greece.I defy anyone to find a better economic system for creating general prosperity, especially when it is coupled with a democratic-style government.
Britain is one of the countries that historically responds to crises of capitalism by doubling down: seeking reforms that make capitalism work more effectively rather than trying to hobble and block it. Between World War Two and Maggie Thatcher Britain lost its way, bumbling through decades of decline and well intentioned but hopeless efforts to find some other way to grow.
Monday, December 26, 2011
Why Capitalism Is So Important
It's important because it works: