The myth that the stock-market collapse was due to a failure of Friedman's principles could hardly be more easily refuted. No one was more critical of the Bush spending and debt binge than Friedman. The massive run up in money and easy credit that facilitated the housing and credit bubbles was precisely the foolishness that Friedman spent a lifetime warning against.
That was an easy refutation because it does not defend against the best finger pointed from left to right. My left finger does not point to the fiscal habits or the personality of GW Bush. The finger points to lack of regulation of financial markets. Something that Friedman LOVED with all his cold, 'enlighted self interest'ed heart. I have seen no refutation of this finger by any of the Friedman/Reagan/Jack Kemp lovers of the world.
I have seen some of these defenders attempt a defense by pointing at de-regulators like Bill Clinton, Robert Rubin and Jimmy Carter. That's a lame defense because the named Democrats were wrong as well. Friedman's ideas were still bad, and worst of all they harmed the world. Another lame right wing defense of their principles is the claim that the real culprit is Bush's "liberal" spending binge. I cry 'bullshit' to both these arguments.
And yeah, I mentioned Jack Kemp who was the last of these three to pass into the great beyond of freedom, God and selfishness. Friedmanite Alan Greenspan has come out and admitted that capital markets were under-regulated, I like to imagine that Friedman would be genius enough to see that the facts now refute some of his principles. I'm certain that the vast majority of his followers are not genius enough. They will hold onto his ideas, wait for the next opportunity to put them into action, damage the world economy again, and blame others in turn.
