Creative Capitalism Is Dead
The theory, advanced at various instances, the latest of which is represented by this web-site, that capitalism is too rigid a doctrine and that firms must develop a “social” component instead of being strictly profit-maximizing entities, has come to a crashing halt. The current bailout melodrama is trying to revive a decades-long experiment in “creative capitalism”. A wishful world where politicians enjoy the role of paternalistic father figures herding a wild and buckling free-market towards more socially conscious goals. Our leaders, of course, are not too embarassed to bring out ludicrous comparisons with the nineteen thirties and to scream “speculators! speculators!”. It is not small consolation to realize that Milton Friedman was right.