Timothy Taylor on the late Anna Schwartz.
Sheldon Richman’s definition of the state is spot-on accurate:
The state is an organization of mere mortals who, by one dubious method or another, have been allowed to don the mantle of political legitimacy and to command obedience on pain of imprisonment even of those who never consented to the preposterous arrangement.
History has shown that when governments try to use financial markets to carry out popular social and political goals, they often end up promoting the extension of nonviable credits. These credits will require a government subsidy somewhere in their life cycle. Often, the subsidy takes the form of a taxpayer bailout of banking losses when the government-directed loans eventually sour. When government policies force banks and other private financial institutions to make unprofitable loans, they impose an invisible tax that discourages the development of the financial system. Eventually resources leave the financial sector, reducing consumer and business access to credit, which limits economic growth.
Mary Anastasia O’Grady exposes the roots of the calamity in today’s Venezuela.
