Milton Friedman has been dead for two years, but he still makes more sense of the current economic crisis than anybody else:
Would Milton have seen the crisis as a setback for capitalism?
Only in the short term.
“If this election goes the way it looks as though it’s going to go,” says Tom, “then the political system is about to get a major overcorrection to the left. And that means the American people are about to get an extreme illustration of just how badly government intervention screws stuff up.”
“If Milton were here,” Tom says, “he’d tell us to remember what happened during the Clinton administration. After just two years, the Republicans ended up in control of both houses of Congress.”
Either the liberal establishment in Washington will go too far and the electorate will correct its overcorrection, or the fear of such retribution will keep the liberals from going too far, which would be OK, too. Of course, they could go too far in ways that might not be apparent in two years, in which case we really will be screwed.