The first economic politics of the USA were founded on Adam Smith’s “Wealth of the Nations”. He argumented that the best economies worked based on the invisible hand of the market, who allocated the resources based on the individual’s needs and resources. This doctrine was so influential, that it is still present in the liberal ideologies of the most advanced countries govenrments. Or it was, untul yesterday evening.
When the Congress decided to pass the $700 billion bailout plan, it actually ruled something much more durable and important. It ruled the end of a ultra-liberal era, which started at the beginning of the 19th century and reigned the US free market economy until mrecently. It also shows that Harvard is no longer what it used to be.Read More »An End to a Capitalist Era – the Congress Bailout