Save The World From Peter Mandelson

Forbes ^ | 6/29/09

[FromLori]

Whenever politicians see fit to offer up policy solutions to economic problems, a healthy bit of skepticism is in order. Indeed, to paraphrase the great economist Charles Kadlec, bull markets never die of old age, but they always decline due to policy failure.

In much the same way, economies aren't so much cyclical as they occasionally run aground when vain politicians pass laws that create a wedge between work and reward. Economies usually only grow if regulations inhibiting economic activity aren't intrusive, if trade among individuals is free, if the price (meaning taxes) put on work is suitably low and the currencies within various countries are stable in value.

Simplified, when governments get out of the way, prosperity is regularly the result.

And with politicians and policy in mind, Peter Mandelson, Great Britain's business secretary and top lieutenant to Prime Minister Gordon Brown, recently offered up his views on how the world economy can emerge from its relative slumber in the Wall Street Journal. Sadly, Mandelson proposed ideas that work against the four basic inp

In a piece titled "We Need Greater Global Governance," Mandelson, as expected, called for more regulation. Despite the near uniform failure on the part of regulators to foresee the problems that arose within the financial system, Mandelson has asked for "a totally renovated approach to international coordination of economic policy."

And rather than following a more traditional path whereby he would impose his new ideas solely on Britain in order to test them, Mandelson wants "global coordination of financial regulation" so that "market participants are not able to play one regulatory jurisdiction against another." Translated, in a time of financial uncertainty that hit regulators totally unaware, Mandelson would impose a one-size-fits-all solution whose success or failure would not be tested in one location or country

[vimto]

Here in the UK Peter Mandelson is known as ‘Mandy’ or the Prince of Darkness.

Be afraid, be truly afraid, he is the undead who's political career always bounces back to higher and higher things.

It is said he is Prime Minister of the UK in all but name at the moment. Certainly Brown would not have survived as PM without Mandy's backing - and sure as hell there must be a political price to pay for that service (if it so be).