Euro governments are planning to use the banking system for widespread bailouts in the wake of the COVID-19 shutdowns. This could bring about a new financial crisis.
It's a good thing when politicians recognize that there are people out there who are less fortunate than the political class. But this empathy only does anyone any good if policymakers refrain from socialistic government schemes that make poverty worse.
When the current panic and crisis began, we were already in the late stages of a long asset price bubble. The crisis has exposed the fragility of the current system and we won't be going back to where we were before.
Ironically, the economic collapse in Europe has united both the poor and rich members of the EU in agreement that the EU has none of their best interests at heart. The political winds have shifted and are blowing against the EU.
It is always a challenge for entrepreneurs to try and predict what customers will want in the future. But now things are even more unpredictable. And government regulations aren't helping either.
Far from being a sign of alleged capitalist brutality, the spread of international trade and market freedom is a sign of greater global cooperation and solidarity.
