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Michael van der Galien

Manhattan Institute: Saving Capitalism

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Posted on December 21 2009 3:00 pm
Michael van der Galien was born in the Dutch city of Leeuwarden in 1984. For as long as he can remember, he has been obsessed with the United States. When he was 17 years old, he started blogging - of course about America. His articles have been published at Big Hollywood, Pajamas Media, Hot Air (the GreenRoom) and Right Across The Atlantic. He's also an editor for the Dutch conservative blog, De Dagelijkse Standaard.
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Regarding tech: Yes, the American economy has an amazing capacity to innovate and create wealth, despite, as you note, the U.S. government’s immigration and education policies, and also despite the distortions that come from the government’s “too big to fail” subsidy of finance. These “too big to fail” distortions do exist, though. Like all government subsidies, they thwart true free-market allocation of resources and harm the economy’s ability to reach its full potential.

For 25 years, since Washington first protected the uninsured lenders to big banks from their losses, banks have been able to borrow more cheaply than they otherwise could have without such an implicit government guarantee. The financial industry has been able to use government-subsidized leverage to earn higher revenues, and use those revenues, in turn, to push up salaries and bonuses to executives as well as to skilled staff.

Read more at the Manhattan Institute’s website.

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