Why is it that government almost always escapes financial collapses unscathed?

[Carson]

and the blame almost entirely falls on "the free market". The federal reserve and federal policies were immune to blame in regards to the great depression, and anger at "capitlaism" set off nearly four decades of statist bullshit legislation. The 2008 collapse, again, was blamed on "the free market", and young people today (according to reason.com study) are increasingly believing that socialism will help them gain economic power, and this national feeling helped elect Obama twice.

Why do financial collapses always lead to people criticizing liberty and free economies, and turning to government to fix the busts? Happens every time. 1929, 2008, sometime in the future.

Odd isn't it. The stealth back-door socialism is on a large part what is sucking the streagth out of the capital capitalism needs to function.

 

[Carson]

Why is it that govt always sucks ? is always wasteful ? why do the waste other peoples money on things they would not ?

Like the new trend to try and send everyone through college. If Aunt Martha isn't willing to take out a loan to put you through college is having the government rob her to do it really going to make your family better off?

On top of it is they may not care at all about you or your Aunt. Number one for them may just be the profits they will make through the looting process.

 

[2young2vote]

Government does NOT escape from financial collapses unscathed. They often lose tax revenue during hard economic times and must resort to creating more debt to continue functioning as they were. The problem is governments don't often scale back their operations. There is no "going back" in the eyes of a big government lover, they demand more, more, more without regard to efficiency, quality, and liberty.

 

[TheCount]

Economic downturns grow the government. Following Keynesian thought, the government increases spending during a depression in order to artificially maintain economic demand. Once the depression is over, too few politicians have the courage or convictions needed to decrease spending. If you follow the growth of government during the 20th century, you'll see that government spending (and therefore size) increases more during economic decline than it does during growth. You'll have to ignore war spending, though, that is a totally different issue.

 

[idiom]

Financial collapses bring down governments more reliably than war. The premise is flawed.