An Industrialized Minister Here, an Industrialized Bureaucrat There

The Financial Times is one of the best economic and financial newspapers in the world. It is also a good mirror of the conventional wisdom about the economy and the state.

On December 11, 2011, the newspaper ran a story on the growing public debt crisis in Europe. “Markets and governments”, the journalist argued, “face an uphill struggle … as new figures reveal that the borrowing of industrialised governments has surged”. The story cited an OECD official commenting that “market events seem to reflect situations whereby animal spirits dominate market dynamics, thereby pushing up sovereign borrowing rates with serious consequences for the sustainability of sovereign debt.” Continue reading