Economic Leadership as an Antidote to Fear

Abstract

When the global economy last faced the fears of a financial meltdown, it responded in the way that humans typically respond to fear. It blamed other countries and imposed trade barriers. Countries adopted Marxism, Fascism, and Totalitarianism in frustration with prevailing political systems. Capitalism was rescued only by the promise of Keynes and President Roosevelt that the economy could be reformed, albeit at a cost of much more government control. This contract with capitalism, through government spending and regulation, was unbroken until the deregulations that began when President Reagan unwound much of the New Deal policies.