The Economy Could Not Exist Without Government

Source: The American Prospect
by Ryan Cooper

“The last several days of news about the collapse of Silicon Valley Bank have been quite familiar for anyone who remembers the financial crisis days. Back in 2008-2010, the Federal Deposit Insurance Corporation was eating up regional banks every few weeks. It was darkly amusing to see Silicon Valley’s self-anointed masters of capitalism and apostles of libertarianism screaming for no-strings-attached government help after their own bank fell victim to a run sparked by venture capitalists themselves—particularly given that, as my colleague David Dayen writes, SVB itself was a major lobbying force behind the 2018 bank deregulation that allowed it to engage in more risky business. Less amusing were the all-caps tweets from prominent venture capitalists claiming that all regional banks would soon fail, in a clear attempt to spark a broader panic that would camouflage their desired bailout.” (03/14/23)