Financial Crisis: African Think Tank Defends Free Market

“The financial crisis is a pointer to the fact that one cannot cheat the market- not for long!” exclaims James Shikwati, director of the Inter Region Economic Network in Kenya. In a recent African Executive article, Shikwati makes the case for the free market in the midst of the global financial crisis. He writes, “In a socialist system, no one would ever have discovered that the collapsed companies in America had a problem, taxpayers’ money would have kept them artificially in operation.” In response to whether the state should bail out collapsing companies, Shikwati gives a resounding, “No!” “Bailing out failure is an anti-market principle, since it will only perpetuate and gloss over the causes of the financial crisis.”

To read more, click here.