United States, Seventy Five Years discussed on Marketplace All-in-One


Provide credit was essential i think it was really i think it was absolutely the right decision and it meant the us economy recovered quicker and our banking system recovered quicker and it was again about stabilizing the economy jim go ahead gonna say this is the central dilemma for policymakers in crisis which is that everybody's instinct is to let the thing burn yeah because it seems just to let it burn and it seems fair good for future incentives good for moral hazard and better predict future crises but if you let the thing burned to the point this system collapses you're gonna left he left with hundreds of millions of innocent victims and it it is very hard for people to understand completely understandably that what feels unjust and immoral in the context of breaking a panic is the most just thing to do if your interest is trying to prevent the economy from mass unemployment or a decade of bread lines across the country like what happened the great depression and it's a hard thing for people to appreciate it think in part because you know we hadn't had a major financial panic in seventy five years there was no living memory of what the risks were in letting panic burnt to go too far and that the in some ways it's the central reason why these things are so terrible because the natural human political instincts around fairness and justice collides with what is necessary ineffective to protect the most people this is actually great because all three of your lane and into the mike monks you wanna climb in on that.

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