Not a Science
During the 2008 financial crisis, central banks all over the Western world pumped money to bail out the very financial firms that were responsible for the crisis. As John Dickerson scathingly described : “Risk is supposed to be about choice and consequence. You take a chance and you win or you lose…companies that helped cripple the financial system were repaid by the government bailout. They took a chance, and lost—but they still won.” Now contrast the above with how the British government responded to the infamous Irish potato famine in 1845: they ascertained the high severity of the issue and then decided to do nothing ! Why? It was a time when Adam Smith’s theory ruled Britain with an iron fist. Felix Martin in his book, Money: The Unauthorized Biography : “Adam Smith had proved that it was allowing private self-interest to operate as freely as possible that most efficiently achieves the social good…Within seventy years of its publication, Adam Smith's theory of moneta...