An interesting reworking of an old curse is done by Anatole Kaletsky. The curse you wish on your enemies is “May you live in interesting times.” It is a curse, of course because History as described by Gibbon is “little more than a register of the crimes, follies and misfortunes of mankind.” Kaletsky describes Davos this year as a bore.
There was little of interest to say about business trends or economics. Finance ministers and central bankers were notable by their absence and, when they did appear at the forum, their bored-looking audiences and moderators could scarcely think of any questions to ask.
The world economy, he says, has become boringly stable. This has left the world free to ponder non-economic issues at its world economic forum, issues like religious fanaticism, global warming, Middle East conflict, and nuclear proliferation.
While it might be good to get these long-term problems looked at, can we really be sure that the short-term issues of inflation and unemployment have been kep broadly under control? Kalestsky lists as the sources of that newfound stability “globalization, active demand management, financial deregulation and the addition of three billion new consumers and producers to the global capitalist system.” I spot that “active demand management” nestling in amongst the others. So we’ve got it right, then, and smoothed the business cycle? After decades of upheaval we finally cracked it and know how to keep the economy on stable growth? I rather think that the gods punish people who talk like this. After hubris comes nemesis. I’d like to believe it to be true, but there’s a nagging doubt in my mind that the record years of stable growth might derive not from the cleverness of politicians or even bankers, but from a set of unique conditions which might not be susceptible of future replication. It might be an interglacial period.
People thought they’d cracked it in the 1920s. Everything seemed to be booming, and people were getting richer. That was the way the future was headed. The gods punished them with the Great Depression and World War II. The bright side, on which I usually look, is that we might have built sufficient flexibility and adaptability into the world economy that when the gods do decide to throw something at us, we might survive it.
From Adam Smith Institute
Tags: Libertarian, Politics, Liberty, Freedom