Burning Down the Economy
I’m having trouble keeping the faith these days, what with the “free” (falling) market collapsing all around us. I attempted an analysis of the credit-meltdown from a Paulistinian persepctive earlier today, looking at the reasons this may have occurred due to too much Government intervention, bad regulations and so forth.
I likened the current financial climate to an overgrown forest, long overdue for a burn, but so “unnatural” now as to make any conflagration utterly devestating. I think this analysis was correct.
I would like to come to a new conclusion, however. Indeed, such an American economy as envisioned by the free-market advocates, unburdened by pesky Government intervention, may have created the many small fires necessary to keep the economy stable, orderly, and natural. The Social Darwinism may have worked to keep America’s most successful businesses alive, and let the most feeble die off.
But I’m beginning to doubt that this would have been the case. Too often capitalism is ruined by greed, by monopolies, by corruption–all things that the free market does a bad job at regulating on its own, at least without devestating consequences. Essentially, the economy is not like a forest, because a forest grows without the influence of greed or corruption. It grows naturally based on environment, sunlight, and so forth. Not so with our economy, which without regulation becomes rife with all sorts of odd self-serving games and scams–the very sort we see today causing its collapse.
It’s also true that the economy does not protect itself from monopoly, which is why we have anti-trust laws in place. This to me seems like one indicator that a truly free market must be the stuff of myth. If a free market relies solely on competition, and yet by its very nature stifles competition, and thus requires some form of moderation, then how can there even be such a thing as the free market? There can be varying degrees of free markets, but the archetypal invisible hand variety is surely the stuff of the imagination.
Polecolaw, in his brilliant recap of the current bailout plan, writes:
With absolutely no proof that trickle down Reagan/Bush-onomics has ever worked, an exploding national debt, an exploding national deficit, and the impending baby boom retirement isn’t it time to stop talking about tax cuts for the investor class?
Two weeks ago I would have hesitated. Now, like Lefthawk and Roland Dodds, I want some payback. And not just that, but I want fairness where before I viewed fairness as an excuse the Government used to raise taxes. Now that the Government is ready to spend more on this mess than they ever have on health care or education or other so-called “fairness” programs, I’m starting to believe that fairness may just actually be an issue here.
The investor class has shown itself to be greedy, reckless, and utterly dependent on the Government when the going gets tough. And by the Government, I mean you and me. The taxpayers who suddenly are supposed to reverse-trickle-down and start trickling up our hard-earned tax dollars to the rich, not-so-smart-after-all investment bankers, real-estate nincompoops, and greedy businessmen of all stripes.
I’m losing the faith. I still believe that trade is the best way toward peace and I’m still an avid Globalist. I still believe that capitalism is the best way for the most people to prosper–but perhaps a different variety than the kind we employ today. As the rich grow ever richer, the one hope was that their intelligent investment of our money (and theirs) would be spent better than the Government could spend it.
With the Government poised to spend possibly trillions of our tax dollars on these selfsame businessmen and investors, the question of who spends money more wisely becomes infinitely more complex.
Only one thing is certain. This whole thing stinks. Something has to be done to protect Americans from a total financial meltdown. As Polecolaw writes:
If this market freezes your credit card may not work, and the resulting panic could be devastating. Think how you would react if told you could not charge your groceries on your credit card because Citibank doesn’t have the money to lend you. In addition, companies could find it impossible to fund payrolls causing more panic. This is one of the reasons Treasury acted on its plan – justified fear.
Let’s just hope our Congressmen don’t write a blank check. It’s time we started holding these people accountable.
If, indeed, we need to do something to fix this (as I believe we do) then let’s make sure we act with wisdom and caution, rather than rushing forward out of fear alone, however justified it may be.
Further Reading
Alms for the Rich? by the Omipotent Poobah
CNNMoney: Bailout Plan Under Fire
Naked Capitalism on consumerism and why the bail-out won’t work
Why the Antibailout Right is Wrong
If anyone has more good reads on this subject, link to them in the comments section. Thanks!
Sir:
This is not the financial bankruptcy of US and its Capitalist ideology.
It is clear proof of the MORAL & ETHICAL BANKRUPTCY OF EVERYTHING
THAT IS AMERICAN.
We who live outside America now look upon you with contempt and
anger, because of all the hollow preachings your Adminstrations have been doing
to all the Third world countries and the poor Asians, as though you Americans are
paragons of virtue.
It is an unjustly usurped world leadership by the American Governments that is
ailing the whole world today. Possibly you the Americans may bring down the
whole world by your corrupt and greedy capitalists and their cronies who sit in Government.
When will the American public ever wake up to the realities and throw out these
corrupt and greedy leaders they have been electing .
Umapthy, quite frankly I could care less what the Australians may or may not think. Look to your own house, and prior to bitching about the thorn in our eye, look to the fucking log in your own. I’m no stranger to the history of the third world, or to Australia’s role in it–let alone the treatment of your aboriginal population which quite frankly makes our narrative with the Indians look like a walk in the park.
I’m not excusing America. We have our flaws to be sure.
E.D. Kains last blog post..Burning Down the Economy
Make no mistake, my dear friend. As many have termed it, we are at the “meltdown of the century,” or the “financial crisis of the century” or however you choose to term it.
As a conservative — indeed, as a citizen — best advice is to have a goodly supply of food in the house, plus some kind of means with which to cook food. Coleman stove, whatever.
As humans — and as citizens — it is incumbent on all of us to be AWARE beings. That is — no matter how far technology takes us, we must always be ready to revert to our beginnings — which is survival. Which means — can we EAT tomorrow.
I never thought I’d have had to think about things like this — but, having gone through basic training in the Army, I am fully versed in what it takes to actually survive.
We are now faced with the prospect of having to make sure we make it to the next day — that is, if the worst-case scenario happens, what will I eat? Can I run my computer?
Really basic stuff. Stuff we NEVER thought we’d have to worry about. But, well, when it comes down to EATING, and being warm/cold/whatever –
Frankly, bring it on. I’ve always BEEN about making sure I will survive and live. But most of us haven’t thought about that. Now we must.
And — I don’t care much about whether your readers think I’m nuts or not. Fact is, I’ll live, and they won’t.
Erik … we are at a pivotal point in our history.
We cannot afford to simply pass off a “trend” anymore.
We’re at the point where the bullet meets the bone. A WHOLE lot of stuff is coming together, just now.
Eowyns last blog post..Magical Bridgetown, Nova Scotia