The Economy and The Use of Power
The failure of our financial institutions is illustrative of the failure of the concept of laissez faire free market economics and Adam Smith's "invisible hand" of the market place. It is proposed that laissez-faire produces greater prosperity and personal freedom than other economic systems. Adam Smith proposed that the market would be best self regulated by the "invisible hand" if each individual did what was in his own best self interest.
Milton Friedman, recently deceased, long considered the leader of the Chicago School of Economics and one of President Ronald Reagan's primary economic advisers pressed for an economic model based on free market concepts, lower taxes, and the reduction in the size of government. This was the conservative mantra adopted by the Republicans in the 1980's through the most disastrous reign of George W. Bush. It has led to the diminution of the labor movement, the reduction of governmental controls on business, the subsequent rise of the corporate culture and control of our resources and government by that culture, and the largest unequal distribution of income (and wealth) upward to corporate management and the moneyed interests.
One of the major problems of the economic system that has been foisted on this country by the proponents of the above philosophy is that it is based upon a major fallacy. It ignores human nature, the driving forces behind human action; human personality traits and human emotions.
How do these factors play out in the implementation of the laissez-faire free market economy that lead to the problems specified above? They are threefold.
First is the fact that rationality is not the main motivator for human behavior. The main such motivators are in fact emotional: fear, insecurity, anger, love, and greed just to name a few. This leaves the masses vulnerable to those who would use these emotions to prey upon the masses for the sake of their own self interests.
Second is the conflict between short term and long term best self interest or worse knowing what one's own best self interest is at all. Those who operate on the shortest term self interest can be unscrupulous, preying on the less aware.
Third is perception vs. reality and knowledge. In the modern world true knowledge requires the ability to integrate a complex set of facts and issues. There is a question that needed facts, while more readily available, are not easily integrated into knowledge and understood by the majority of people. This leaves the common man more susceptible to the. manipulation of perception by the unscrupulous.
In the USA democracy depends upon the acquisition and integration of knowledge by the masses. In the absence of this, people must depend upon their trust in others who will be able to integrate knowledge and act in the social environment in the best interests of the many, not the few, or in the individual situation, offer advice in the best self interest of their client.
Our forefathers were wise enough to recognize these issues and designed a government that provides oversight and a separation of powers. In the past 8 years these protections have proven to be inadequate. Under the one party rule of the Republicans, a party controlled by the wealthiest interests, our government has failed. Even the past 2 years when we had divided government little has been done to correct the situation.
Should Obama win the election it will be up to him to lead this nation out of the sorry state that we now find ourselves. Is he up to it? Only time will tell. As far as I am concerned his major job is to make government work for all of the people and to restore respect of the government by most of the people so that he and the government can once again act in the best interests of the nation.
It is said that FDR and his associates were very aware of the potential misuse of governmental power by the individuals who held office (elected or appointed). He carefully watched what was happening and did not put up with any failure of the public trust. And so must it be now.
Michael
Milton Friedman, recently deceased, long considered the leader of the Chicago School of Economics and one of President Ronald Reagan's primary economic advisers pressed for an economic model based on free market concepts, lower taxes, and the reduction in the size of government. This was the conservative mantra adopted by the Republicans in the 1980's through the most disastrous reign of George W. Bush. It has led to the diminution of the labor movement, the reduction of governmental controls on business, the subsequent rise of the corporate culture and control of our resources and government by that culture, and the largest unequal distribution of income (and wealth) upward to corporate management and the moneyed interests.
One of the major problems of the economic system that has been foisted on this country by the proponents of the above philosophy is that it is based upon a major fallacy. It ignores human nature, the driving forces behind human action; human personality traits and human emotions.
How do these factors play out in the implementation of the laissez-faire free market economy that lead to the problems specified above? They are threefold.
First is the fact that rationality is not the main motivator for human behavior. The main such motivators are in fact emotional: fear, insecurity, anger, love, and greed just to name a few. This leaves the masses vulnerable to those who would use these emotions to prey upon the masses for the sake of their own self interests.
Second is the conflict between short term and long term best self interest or worse knowing what one's own best self interest is at all. Those who operate on the shortest term self interest can be unscrupulous, preying on the less aware.
Third is perception vs. reality and knowledge. In the modern world true knowledge requires the ability to integrate a complex set of facts and issues. There is a question that needed facts, while more readily available, are not easily integrated into knowledge and understood by the majority of people. This leaves the common man more susceptible to the. manipulation of perception by the unscrupulous.
In the USA democracy depends upon the acquisition and integration of knowledge by the masses. In the absence of this, people must depend upon their trust in others who will be able to integrate knowledge and act in the social environment in the best interests of the many, not the few, or in the individual situation, offer advice in the best self interest of their client.
Our forefathers were wise enough to recognize these issues and designed a government that provides oversight and a separation of powers. In the past 8 years these protections have proven to be inadequate. Under the one party rule of the Republicans, a party controlled by the wealthiest interests, our government has failed. Even the past 2 years when we had divided government little has been done to correct the situation.
Should Obama win the election it will be up to him to lead this nation out of the sorry state that we now find ourselves. Is he up to it? Only time will tell. As far as I am concerned his major job is to make government work for all of the people and to restore respect of the government by most of the people so that he and the government can once again act in the best interests of the nation.
It is said that FDR and his associates were very aware of the potential misuse of governmental power by the individuals who held office (elected or appointed). He carefully watched what was happening and did not put up with any failure of the public trust. And so must it be now.
Michael
posted by Michael | 12:26 AM
|
0 comments
