America’s ‘Stab in the Back’
Big Financial Lies – Paul Krugman The reality of the financial crisis was that deregulation — which was part of a broader rightward shift in policies that played a large role in creating rapid growth in income inequality — led to an economic catastrophe of the kind that just didn’t happen during the 50 years or so when we had effective bank regulation.
What we need to understand about the idea that Barney Frank and too much regulation actually CAUSED the financial meltdown is that this is America’s “Stab in the back.” For those unfamiliar with the story of how Hitler rose to power and turned a country noted for both its culture and tolerance into a watchword for tyranny, torture and genocide, it is important to realize that it would not have been possible with out this big lie gaining widespread acceptance in German society. The ‘stab in the back’ theory was that Germany had not actually lost WWI in a fair fight but had been betrayed by its democratic government. Originally the idea was concocted by monarchists, arguing against democratic rule, but the Nazis soon adopted and expanded on this idea, painting the Weimar Republic as a sinister blend of Jews, Bolsheviks and other ‘degenerates’. This is the end result of believing lies, however convenient or comforting they may be.