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Business Week:Professor Hoppe, We currently have booming state intervention in both the economy and in society again. Many citizens want more government and less market. How do you explain that?
History shows that crises promote the growth of the state. This is particularly evident in wars and terrorist attacks. Governments use such crises in order to pose as crisis-solvers. This also applies to the financial crisis. It has provided the governments and central banks with a welcome opportunity to intervene even more in the economy and society. Government representatives have managed to lay the blame for the crisis on capitalism, the markets and greed.
Without the intervention of central banks and governments in the form of liquidity injections and stimulus programs, wouldn’t the world have been thrown into a deep depression like in the 1930s?
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