You are exactly right. I apologize for being unclear- I was trying to explain that voluntary human action (the 'free market') is good, and government regulation (decree enforced by violence) is bad.Lazier Than Thou said:This is where you lost me. Now, I may be ridiculously stupid, don't rule it out, but why would the government have a better understanding of where to invest if the government is run by the same stupid people that make stupid investments? Moreover, wouldn't it be more likely for bad investments to happen with politicians who don't naturally care about the benefit of the country or the people, but for their own personal gain? Wouldn't they just invest money in people who are likely to return their favor with campaign contributions?Rooster Cogburn said:The old boom-and-bust is caused by aberrations in the market, such as when people make inadvisable investments based on bad information. This causes capital to be invested where it will not produce, and therefore will bust. In a free market, this will be possible as long as people are stupid, but the single greatest cause of capital invested where it will not produce is state regulation.
EDIT: CHEER! Indeed.