Insofar as the debate over bank nationalization has proceeded, we would submit that a classic "false choice" argument is being furthered by both sides. The free market folks prefer to conjure imagery of a nationalized bank being run by inept politicians and red-tape bureaucrats running wild. Conversely, the proponents of Government intervention have adeptly tapped into a vein of populist rage, arguing that these insitutions must be fully nationalized in order to get credit "flowing"again.
We would like to make the point that a pragmatic and effective strategy of nationalization has occurred before-in Sweden. As any student of politics is aware, ideologies are not true, and are simply a tool in the political bag. Although we prefer optimism, we are at heart realists who doubt that this debate will be settled in pragmatic fashion.Sphere: Related Content