But the last decade could be described as the comeback of socialism. In response to the financial crisis, nations foolheartedly turned to central governments to steer them out of crisis. Government debt, spending and regulatory activity soared all across Europe and in the United States. The Keynesian model that government welfare spending as a "stimulus" came storming back in vogue — nowhere more so than in the United States.
Many countries, including Greece, Italy, Spain, Portugal and France — as well as the United States — experimented with quasi-socialist governments. Now the bitter price is being paid.
This more than anything else explains why the world is twisting in financial turmoil in recent weeks. Not just Greece, but at least a half a dozen nations appear to be on the verge of bankruptcy because they can't afford the social welfare states they have, and the bills are coming due. The socialists are getting hammered..
Shortly before he died, Milton Friedman lamented: The enduring lesson of the 20th century is that socialism is a failure and free markets are a success. But the politicians keep advocating just a little more socialism." That is precisely what is ailing the world economy today.'