Samizdata

Bank bail-outs have been a cultural catastrophe for those of us who support free markets, low taxes and enterprise. During the 1980s and 1990s, much of the British public came to accept and even embrace capitalism, in return for a simple deal: profits and losses would both have to be privatised. Clever entrepreneurs, savvy traders or brilliant footballers would be encouraged to make money; but companies and investors that placed the wrong bets would be allowed to fail, with no pity. Not only did this trigger an explosion in prosperity, it also helped shift the British mindset towards a much more pro-enterprise position. The rules of the game felt fair: risk and reward went hand in hand. The government would serve as an umpire, not a supporter of vested interests.But the crisis of 2007-09 put an end to this implicit bargain, at least in the eyes of vast swathes of the public.

– Allister Heath.

Bailouts are a disaster for pro-capitalists. It is almost as if it was deliberate. My only slight caveat here with what is a typically incisive article is that I am not sure how deep the greater support for capitalism really ever went. It certainly never penetrated academia, and parts of the policy maker world. But I am an optimist: the continued respect that seems to be shown among ordinary people for genuine entrepreneurs (not crony capitalists) shows that something has taken root.