György Ivány on the desire for a strong state

Thanks to the global financial crisis the myth of the strong state is experiencing a renaissance, György Ivány notes in the liberal left-wing weekly Élet és Irodalom: "It would be a mistake to see human nature as the cause of the crisis. Whether stockbroker or boilermaker, Afghan or African, that's just the way people are: when they think they can multiply what they have or believe they have, that's what they do. The actors on the market have simply - within the legal framework of the state and under its control - acted in accordance with their interests. The governments, legislators, central banks and bank regulating authorities, on the other hand, didn't do their homework. They failed to represent the long-term interests of the community against the interests of individuals - through laws, controls and regulations. In some cases it was even the other way round. They pursued short-term goals like sharks on the stock market. ... To master this crisis radical steps must be taken. ... Expanding the guarantee for savings accounts and giving banks cash injections may be more dangerous - to use the words of economist Milton Friedman - than the illness itself, but whether we like it or not the state must now intervene."

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