Saving the World Economy From Peter Mandelson
Whenever politicians see fit to offer up policy solutions to economic problems, a healthy bit of skepticism is in order. Indeed, to paraphrase the great economist Charles Kadlec, bull markets never die of old age, but they always decline due to policy failure.
In much the same way, economies aren’t so much cyclical as they occasionally run aground when vain politicians pass laws that create a wedge between work and reward. Economies usually only grow if regulations inhibiting economic activity aren’t intrusive, if trade among individuals is free, if the price (meaning taxes) put on work is suitably low and the currencies within various countries are stable in value.