In a recent article, we explained how central banking wrecks the economy over and over again with its interventionist monetary policy. The Fed tinkers with interest rates and drives boom-bust cycles. But government also has a role to play in this drama. The policies pushed by politicians and bureaucrats help determine where malinvestments will show up in the economy.
The unholy alliance of central bankers, politicians and government functionaries always ends in economic chaos.
In the years leading up to the 2008 crash, the government tried to turn every American into a homeowner. Needless to say – it didn’t end well. This should serve as a warning for the current batch of politicians and bureaucrats. Sadly, it probably won’t.