It may now be assumed that the only people allowed to fail in the world are athletes and some gamblers. Businesses are not.
In Ireland, for instance, banks made bad loans and thus lost a lot of dough but no, they were not allowed to go under by the government and by its European pals. Why? Because economic failure is, well, not nice. People do not expect it and politicians couldn’t hide from the responsibility for it.
Now on top of it all this is all being blamed on Ireland’s flirtation with free market economics. The country’s government lifted some regulations so as to give support to a more vigorous financial market but when the results came in–namely, that some folks who undertook business ventures ended up losing money–well they were not allowed.
Those who blamed free market economics for this are clearly economic imbeciles. The free market is a place in which both winning and losing are possible and in either case the government must stay out of the game, just as in most sports the referees don’t bail out those who lose unless they are corrupt. If Ireland did in fact have a free market economy, however extensively or minimally controlled or regulated by the government, banks would not be bailed out but left to lose if that is how they ran their business or if luck didn’t favor them.