Noam Chomsky on Financial Liberalization, Under Priced Risk, and its Effects on the Economy
Introduction
With the failure of markets to factor in external costs, the government has to regulate the economy in order to maintain fair practice as well as uphold the common interest. The Great Depression during the 30s resulted in massive reforms within the economy in order to stabilize it’s boom-bust cycles, and gave the state more control over financial markets (ex: separating people’s savings accounts from the stock market, or drafting a charter on the savings and loan associations).
The recent trend in the agenda of the White House has been deregulation. And with that, now we are seeing recession and insecurity …


