Stockman — Our Great Deformation Continues

by Ryan on April 1, 2013

in Economy,Politics,Social Agitators,Stupid government

I wish this were an April Fools joke, but it’s not.  Former Reagan economic guru David Stockman is warning that the Fed’s money-pumping is creating an unsustainable stock bubble which will inevitably come crashing down in the next few years.  Worse, Stockman argues that the “Too Big to Fail” corporatist culture created over the last few decades will end only in unimaginable disaster without revolutionary political and economic change:

The way out would be so radical it can’t happen. It would necessitate a sweeping divorce of the state and the market economy. It would require a renunciation of crony capitalism and its first cousin: Keynesian economics in all its forms. The state would need to get out of the business of imperial hubris, economic uplift and social insurance and shift its focus to managing and financing an effective, affordable, means-tested safety net.

All this would require drastic deflation of the realm of politics and the abolition of incumbency itself, because the machinery of the state and the machinery of re-election have become conterminous.  Prying them apart would entail sweeping constitutional surgery….

Stockman’s profile has reemerged because he has a new book on the horizon, The Great Deformation: The Corruption of Capitalism in America, which deals with the dangers of crony capitalism.  Yet, this is one area where I believe that the Tea Party and the Occupy rubes actually agree — big government and big business are a bad combination.  While assuredly pessimism porn, I’m nonetheless interested in reading Stockman’s book when it becomes available tomorrow.

{ 3 comments… read them below or add one }

Mike April 2, 2013 at 9:28 am

I plan to pick that up as well, but I wonder if you’re right about the Tea Party and Occupy both opposing a symbiosis between big business and big government. I think both would claim to oppose the principle, but I’m not sure Occupy would actually apply its stated opposition if the opportunity arose. The left loves to use government to reward those who agree with them and punish those who don’t. We would just have the government get out of the way period.

That said, I’m not sure I’m right either.


Ryan April 3, 2013 at 5:23 pm

BTW- I ordered Stockman’s book on Amazon and it came in today. It’s a brick — 700+ pages.
Either I’m going to be glued to it or buried by the inside baseball.


Southern Man April 4, 2013 at 3:17 pm

Market, just hang on for five more years, then I’ll be old enough to cash out my 503B. Which I will do, down to the last penny, on the day I turn 59 1/2.


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