A Crisis of Political Economy

The following is one of the best articles I have read on the crisis we are facing in the United States and the rest of the world. It also gives a great explanation of the Tea Party movement in the United States and how it has become so popular and wide spread. I hope you will take the time to read it and share it with all you know.

A couple of excerpts follow:

There was a crisis of confidence in the financial system and a crisis of confidence in the political system. The U.S. government’s actions in September 2008 were designed first to deal with the failures of the financial system. Many expected this would be followed by dealing with the failures of the financial elite, but this is perceived not to have happened. Indeed, the perception is that having spent large sums of money to stabilize the financial system, the political elite allowed the financial elite to manage the system to its benefit.

This generated the second crisis — the crisis of the political elite. The Tea Party movement emerged in part as critics of the political elite, focusing on the measures taken to stabilize the system and arguing that it had created a new financial crisis, this time in excessive sovereign debt. The Tea Party’s perception was extreme, but the idea was that the political elite had solved the financial problem both by generating massive debt and by accumulating excessive state power. Its argument was that the political elite used the financial crisis to dramatically increase the power of the state (health care reform was the poster child for this) while mismanaging the financial system through excessive sovereign debt.


About Howard

Lived a lot, learned a lot, and continue to learn. Most important lessons learned: The Founding Fathers were right, are right, and will always be right. The Declaration of Independence, The Constitution of the United States, The Federalist Papers, and Wealth of Nations are the cornerstones of what made the United States of America the greatest country the world has ever known. The farther we stray from those truths, the less free and happy we are.
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