Re:The political aftermath of financial crises: Going to ext...
by lintiness on Friday December 11, 2015 @11:55AM
(#10718155)
"the only bailout beneficiaries are big banks" is patently false.
if the banks were the only parties to benefit, there'd be zero political will to aid. banks hold the nation's savings, and allowing them to fail meant multiples of pain for average people.
if this crisis proved anything, it's that friedman was right (printing can stall a deflationary spiral). what remains to be seen is how the next act plays.
I suppose the reason far-right political groups benefit is because when people lose their possessions, all they are left with is their identity, and a lot of anger. This can feed resentment at any "other" group responsible for their travesty, whether it be a foreign power (WWI victors), internal distinct subgroup (Jews in Germany; Muslims in America/Europe; welfare recipients), or even religion (Arab Spring and ISIS being correlated with the global recession and rise in food prices).
History shows that any extreme cannot last forever, but it can do damage that lasts for generations. The extreme right may be wrong, but the conditions make them attractive. And dangerous.