Paul Krugman, e.g., in The Return of Depression Economics and the Crisis of 2008 (Norton, 2008) says "there will have to be an assertion of more government control — in effect, it will come closer to a full temporary nationalization of a significant part of the financial system."
If we are really sincere about not wanting to repeat the 1930s, the political classes should do nothing but cut taxes and free the labor market — but otherwise do nothing to "help" the problem.
The Clinton years are a case in point. Spending rose very little. Warfare was curbed relative to the past and present. Deficits fell. The public sector shrank.
A free society includes the freedom to be unconcerned, insensitive, or stingy. If the forced looting of the taxpayers for foreign-aid payments has always been wrong, then — cyclone or no cyclone — it is just as wrong now.
Markets make more people fit rather than triggering a "dog eat dog" fight for survival. Private property prevents the law of the jungle rather than enabling it.
We all assumed that there were two poles: a 'left' pole of Communism, socialism, and total government; and a 'right' pole of libertarianism and individualist anarchism.
