Nation in Financial Crisis: Causes and Solutions

What fuels economic growth? How was the debt bubble created? What happened in the housing market, with the large banks, and the ‘too big to fail’ policies of Washington? Is this the fault of capitalism or a mixed economy?

In this panel Yaron Brook, executive director of the Ayn Rand Institute, and Jerry Jordan, president of the Pacific Academy for Advanced Studies, will argue that today’s crisis is a failure of the un-free market, massive government intervention, crony capitalism, government corruption, and the Federal Reserve’s easy money policies. Dr. Brook and Dr. Jordan will go on to evaluate the government’s response to the crisis and suggest alternatives.

Dr. Brook also explains why “the free market has taken the blame for a crisis caused by government intervention. While most people are quick to blame capitalism for any evil because it encourages selfishness and rewards the profit motive, Dr. Brook will argue that these traits are precisely what make capitalism a moral system.”

This video is critical in the understanding of markets, government policies, and the wider implications of ideas on the culture. As Dr. Brook mentions toward the end of their Q & A session, the most important thing we can do is to learn the principles involved in these bad decisions that affect our future prosperity and be a part of the better solutions that are possible.

Here is the link for this most insightful panel discussion at UCLA posted by the Ayn Rand Center for Individual Rights.

The Ryan plan is not radical enough

Paul Ryan’s plan to reduce the federal deficit is not radical enough says Mark Hendrickson in his article in The Christian Science Monitor. In fact, his plan would increase the federal debt by 1.1 trillion. The democrats on the other hand believe that adding only 5 trillion to the federal budget deficit is an extremely conservative figure indeed.

How do their plans differ? Who would be most effected by the ever-expanding burden of fiscal debt? And finally, is this primarily a political or ethical dilemma? These questions are covered in this thought-provoking article titled The Problem with the Paul Ryan plan: It’s not nearly radical enough.

“The Ryan plan is not radical at all. It doesn’t get to the root of the problem. It never questions the legitimacy of government redistribution of wealth. Though Ryan’s plan moves us in the right direction, with less federal spending, it is ultimately not a cure for what ails us.

The democratic welfare state is unsustainable. The federal debt problem likely will get a lot worse and cause a lot of economic dislocation and pain before a majority of Americans are ready to admit that it is an activist, “progressive” government engaged in the problematic practice of redistributing wealth that has brought us to the brink of national bankruptcy.

Herman de Rompuy, President of the European Council, bluntly stated last year, “We can’t finance our social model any more.” The democratic welfare state is inherently unsustainable. In every area where the government has intervened to take care of us – retirement, healthcare, education – the price tag keeps soaring, as does the nagging feeling that things are getting worse instead of better.”

Click here to read the complete article.