PrestoPundit

THE LIBERTARIAN ROAD TO SERFDOM

Posted by PrestoPundit on 07/25/2008

Here’s my new equation:

Unrestricted mergers in the financial sector + to big to fail = The Libertarian Road to Serfdom.

I’ve often argued that “libertarians” fail to see the big picture when they avert their eyes from the overall political process when they think about anti-trust law.  Essentially these libertarians are stuck in a pretend blackboard economics equation, and they fail to see how the emergence of the mega banks has transformed the political process, creating a system where the mega firms control the politicians, and the politicians shift risk and losses from these firms to the taxpayers, under the theory of “To Big To Fail.”  It does no good to argue that as “libertarians” these blinded economists don’t support “to big to fail” legislation.  What matters is the reality on the ground — the mega institutions and their supporting interest groups own the politicians, and when “libertarian” anti-trust law allows the formation of “to big to fail” mega institutions, risks will be socialized and taxpayer inflated profits will be privatized.

So remember this equation:

LIBERTARIAN ANTI-TRUST LAW + TO BIG TO FAIL = THE LIBERTARIAN ROAD TO SERFDOM

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