Over the past couple of weeks Americans have witnessed a protest called Occupy Wall Street go rampant throughout the nation. These protests are relatively unorganized and protestors have different reasons to go to the street, but most of them focus on holding corporations accountable, stopping greed and blaming capitalism for the recession in 2007and its aftermath.
Should private sector shoulder the blame for the recession and the sluggish recovery over the past few years? If a layman sees free market generating tremendous income inequality, banks granting people who lack credit history mortgages with low interest rate, and money managers like Madoff playing Ponzi schemes, then he may answer yes. Yet the history of capitalism is crystal clear that huge fraction improvements in standard of living have come because private businesses had created new products, given people jobs, generated profit that raised people out of poverty and allowed them to live fruitful and productive lives. We can have much more of that and beneficial effect around the world if we take a step back from excessive government regulations.