Friday, June 26, 2009

Putin on Socialism: This is must reading

"Excessive intervention in economic activity and blind faith in the state's omnipotence is another possible mistake... Instead of streamlining market mechanisms, some are tempted to expand state economic intervention to the greatest possible extent...

In the 20th century, the Soviet Union made the state's role absolute. In the long run, this made the Soviet economy totally uncompetitive. This lesson cost us dearly. I am sure nobody wants to see it repeated...There is no reason to believe that we can achieve better results by shifting responsibility onto the state...

And one more point: anti-crisis measures should not escalate into financial populism and a refusal to implement responsible macroeconomic policies. The unjustified swelling of the budgetary deficit and the accumulation of public debts are just as destructive as adventurous stock-jobbing."

-- Vladimir Putin, Russia Prime Minister
Feb 2009 Lecturing the U.S. on the dangers of socialism.

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