Friday, December 17, 2010

Krugman Picks up the Financial Crisis Commission Whitewash

The conservative explanation for the Great Depression was simple. The government did it. This is their "never ending story" because one of the assumptions of their economic theory is that market economies may be subject to business cycles but equilibrium is at full-employment. When the economy gets stuck below full-employment for extended periods, something must have interfered with the market mechanism, and that something is always government.

If we turn the clock ahead to our Great Recession, the conservative explanation does not vary. The government did it. As Krugman indicates, inconvenient facts are simply ignored. The ideology of "self correcting free markets" must be preserved at all costs.

All four of the GOP members of the committee have demonstrated their allegiance to the ideology. One wonders why we keep forming bipartisan committees to investigate our economic disturbances when the answer is always given in advance of the investigation by the conservative members. In this case, the media will pick up the story and their approach is always the same. They will tell us that some members of the committee claim that the world is round, but that it has not been proven that the world is not flat.

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