You should be fully aware that insecurity is the major cause of paralysis of investment.

Frédéric Bastiat
Section 6 of 7

In this last section before concluding, Frédéric Bastiat exposes a number of issues that would come up from an illiberal system in which the government would not restrict itself to impose justice but would attempt to impose fraternity.

An important insight is that it would necessarily be centralising and conformist, which goes against diversity. Yet, diversity is what allows the confrontation of ideas in the search for truth. Government can impose the truth if it knows it but, due to the fact that we cannot ever be totally certain of what truth is, government could as well be imposing an error. This is a risk that liberal-minded people are not ready to take. I also note in passing that in the 21st century, a lot of individuals are in favour of respect for diversity (which marks some sort of progress since the 19th century) but are even more passionate for the necessity to impose equality (which is contradictory).

I chose today’s quote because of the good it could make if it were heard nowadays. I am convinced that the crisis (or stagnation) situation since 2009 is linked to interest rates repression by the governments, thereby creating a major uncertainty towards the future. As a consequence, investments are below the level where they should be despite their low cost. There is a paralysis of investments. 

Other quotes from Justice and Fraternity:
Section 1 of 7 – Section 2 of 7 – Section 3 of 7 – Section 4 of 7Section 5 of 7Section 7 of 7

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