Saturday, 24 October 2009

BBC: biased and lacking logic

This may be a surprise, given Germany's history of maintaining a highly regulated "social market economy," and the fact that its export-focused industry is suffering badly because of the market failure that has devastated industrialised economies the world over.
So the market failure mantra appears again, and surprisingly enough trying to say that freer markets as the result of the crash is a surprising response.

But wait a minute. They can't even get their logic right. A "highly regulated social market economy". That's not a free market. Market failure? Clearly the market isn't causing the failure. Perhaps the regulation is causing the failure? Perhaps tax cuts are the right idea, so Germans have more disposable income to spend on goods. Might reduce their export dependency too.

But yet again the BBC doesn't have a clue. The markets failed because they were distorted by governments. Blaming "the market", which is just a means of exchange, misses the point.

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