Our Revised Pledge: “And to the Banana Republic for Which It Stands…”

It’s sad but true.  We owe an apology to our Central American bretheren:

Political risk is becoming a growing concern for investors in the United States as the government plays a larger and more controversial role in private enterprise because of the financial crisis.  State intervention in economic affairs is always closely watched by investors for what it means for their decisions on where to allocate money, although this is usually more of a worry in emerging markets than in developed economies. (emphasis mine)  Political risk is becoming more of a U.S. issue as some investors howl over what they see as arbitrary intrusion by the government in business affairs.

And we will see the results of this: capital flight, increased interest rates, decreased ability to borrow (we’re already there,) etc.  The rule of law and the integrity of private property have been hallmarks of American jurisprudence since the beginning.   To squander them for whatever social goal will take away one of the main advantages of being the United States.

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