Monday, May 4, 2009

Swine Flu Leading to More Government Intervention?

Flu could boost gov't intervention further...

The spread of a possible flu pandemic could see an increase in already heightened levels of government intervention in economies and financial markets as a result of the global financial crisis.

In the short term, it might serve to give governments an easy justification to impose protectionist measures that could further stifle slumping trade flows.

Doctors and officials around the world are moving to contain the spread of a swine flu outbreak that has already killed more than 100 people in Mexico and spread to countries around the world, with markets already reacting nervously.

"At the moment, markets are still making the assumption this will not be that serious," said Dresdner Kleinwort emerging foreign exchange strategist Jon Harrison.

"But if it were to turn out much worse you would see a rise in government spending and government intervention. This sort of crisis would be too big for anything other than governments."

That's all we need, more government. It wouldn't surprise me if this was the source of all the hysteria. Easy case for universal healthcare? Must protect our people from dangerous diseases? I can see it happening.

It's important to note that there have been no deaths in America. In fact, so far the bug has been relatively mild. There is no indication that this will turn into a deadly pandemic here in the US. There is no need to panic, but we should all be aware of the situation, and careful. If you are sick, stay home. If your kids are sick, don't send them to school.

-Cross posted from

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