Episode 42: Is the Global Financial Crisis a Liberal Crisis?

Episode #042
(46:07 min 42.2MB)

Critics of liberalism would like to blame the onset of the global financial crisis on it. However, Dr. Felipe Medalla, Foundation for Economic Freedom chairman, argues otherwise. He points to the weakening of the rule of law in the United States as one of the main factors for the crisis. He talks about how the corruption in its financial system and regulatory failures led to the meltdown.

Dr. Medalla also discusses how the financial crisis is a case of an oversimplified belief in the inherent stability of markets. The U.S. government paid too little attention to the valid case for basic regulation. The crisis is an important indicator of the need for an efficient rule of law to keep markets free and competitive. However, the danger is that governments might overcorrect now and smother markets in badly crafted regulations.

The music is provided by Dieter Bachmann and Tchaikovsky.

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