Myth: The Great Recession was caused by free-market policies that led to irrational risk taking on Wall Street. Reality: The Great Recession could not have happened without the vast web of government subsidies and controls that distorted financial markets.
Myth: Finance was deregulated during the 1980s and 1990s, laying the groundwork for the 2008 financial crisis. Reality: Although some financial regulations were rolled back during the late 20th century, the overall trend was toward increased government control.
Stephen Moore, chief economist at the Heritage Foundation, published a hard-hitting op-ed in the Orange County Register over the weekend. It’s a timely follow-up to his viral 2009 Wall Street Journal column drawing parallels between the collapsing economy in Ayn Rand’s novel Atlas Shrugged and the chaotic world of Washington politics at the height of the financial crisis.