A thoughtful article where Sen criticizes the perversion of Adam
Smith's ideas and the revival of Keynesianism(s).

http://www.nybooks.com/articles/22490
--------------------------------------snip
The implicit faith in the ability of the market economy to correct
itself, which is largely responsible for the removal of established
regulations in the United States, tended to ignore the activities of
prodigals and projectors in a way that would have shocked Adam Smith.

The present economic crisis is partly generated by a huge
overestimation of the wisdom of market processes, and the crisis is
now being exacerbated by anxiety and lack of trust in the financial
market and in businesses in general—responses that have been evident
in the market reactions to the sequence of stimulus plans, including
the $787 billion plan signed into law in February by the new Obama
administration. As it happens, these problems were already identified
in the eighteenth century by Smith, even though they have been
neglected by those who have been in authority in recent years,
especially in the United States, and who have been busy citing Adam
Smith in support of the unfettered market.



-raghu.


--
"I'm an apathetic sociopath - I'd kill you if I cared."
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