Thursday, October 18, 2012

Bogus Right-Wing Memes: "Get Government Out of the Way"

This is a good video on the whole, although it totally overlooks an even more fundamental contribution of government to businesses, the intellectual property system that is written into our Constitution and helped make the US different from other countries from Day 1.

The patent and copyright protections that US businesses demand be enforced vigorously are a gigantic support for business and innovation.

The video also overlooks the role of the bankruptcy system; without a bankruptcy code to backstop the financial system, you'd see a whole lot less borrowing and lending.  Without bankruptcy codes, lending is mainly done through small networks and clans, and defaults lead to devastation, with favored creditors doing OK and others being wiped out, which leads to a vicious cycle of distrust, which undermines the whole economy.

If you think business and the economy would prosper if government just "got out of the way" then you don't understand business or the economy.

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