Mark T. Mitchell has 10 questions raised by the bailout and our economic mess. Here are the first two:
1. Is it a fundamental problem when a corporation becomes so big that its failure threatens to bring down the national economy? Could it be that scale matters? Can institutions become so large that their potential harm outweighs their actual (or occasional) good? If yes, then are there measures that could help ensure that economic power is decentralized and therefore less dangerous?2. The bailout was ostensibly necessary to protect our "American way of life." That such a reason was offered without justification indicates that our way of life is an axiom that must be assumed but never questioned. But is it too much to consider, if only for a moment, that perhaps our way of life is precisely the problem? Of course, a way of life is a complex thing, but insofar as the "American way of life" consists in living beyond our means, it is unsustainable. To the extent that consumer credit is at an all-time high and personal savings is at an all-time low, the "American way of life" is irresponsible.
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You want to get really cynical, read "The Arms of Krupp". After WWII the head of the Krupp family at the time was sentenced to life for war crimes. At his sentencing he was unrepentant, and predicted he would not serve 5 years because "Germany cannot survive without Krupp."
He was out in less than 5 years.
Many are getting high and mighty over this situation. I have one question for Mark Mitchell, "How would you like to lose everything?" Without the bail out, there is no telling how far the economic depression would have gone. That college he works at could have very well gone bust.
In earlier, less refined times, there would have resulted a bloody revolution. The barricades would have been manned and bullets would rain. The lamp-posts would have been decorated with the swinging corpses of kleptocrats.
But in this modern, oprah-ized society, let us instead stick our fingers in our ears and chant (merrily) La la la la la…
At least we can make ourselves feel better.
Who said it was to preserve the American way of life and in what context? I think that amongst the people who think seriously about these issues, it is regarded as an attempt to avoid a depression or a long stagnation, like in Japan. Sounds to me like the guy is pushing an agenda more than asking questions, which is his right.
That said, it would be nice if we worked off our debt. That would probably start with not electing a Republican for president if we look at data for the last 28 years.
Steve
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Is it a fundamental problem when a corporation becomes so big that its failure threatens to bring down the national economy? I dunno. After it fails, it's not so big, is it? I don't buy the premise.
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