The Great Receding and Hayek

The Great Receding and Hayek

Today in the News
November 04, 2011

Great Receding

On OpenMarket this week, Warren Brookes Fellow Matt Patterson talks about the effects of the recession.

"Unemployment is high; underemployment is higher. Once-bustling businesses are on life support. A friend of mine who owned a highly successful electrical company recently had to shut down for lack of work. And on, and on. From the suburbs of the nation’s capital to its deepest heartlands, the Great Receding has begun. It’s all got me to thinking about prosperity, how evanescent and fragile it can be. When times are good, the champaign flows freely and the party feels permanent. People spend and build as if today’s fortune will roll effortlessly over to tomorrow. It doesn’t, though. Not always. And when the music stops abruptly and the market crashes, people always seem shocked that they can no longer afford the the fancy clothes they wear, the fine meals they eat, the big houses they inhabit. Or the small business they opened."

Hayek

Friedrich Hayek famously wrote an essay declaring that he was not a conservative---yet he is still an idol of the conservative movement.

Fellow in Regulatory Studies Ryan Young comments.

"More people of all political stripes need to read Hayek and be exposed to his arguments. More people need to learn why government does harm, even when it tries to do good. More people need to learn how easy it is to go down the road to serfdom — and that our cars can go in reverse, too. The more people realize this, the higher the odds that they will keep conservative politicians in check post-election. If the Bush-Obama disaster has taught us anything, it’s that the seduction of power makes even good men go to the devil."