Archives for "economy"

Adam smith’s notion of the “invisible hand” has been quoted and misquoted many time in popular media and by many of our dear friends who wish to hold on to the belief that “capitalism” is the best institution in the world and that “market forces” are natural and necessary for a healthy society.  In cases where a specific industry is in a dire need of government regulation, opponents are quick to say that businesses must be left alone to self-regulate because the tenants of capitalism, supply and demand will fix all quarks in the system.  Those of us who don’t buy the text-book ideology are often ridiculed , but today on the heals of an “economic stimulus package”, we can once again point to how we do not, nor can we fully practice capitalism in the truest sense of the word. What is about to happen in the congress and with the help of the president and the Fed is an artificial manipulation of the markets in order to satisfy the status quo of wealth, consumerism and ultimately unfettered greed. Sure the package will have various ramifications, short term, long term, some positive and some perhaps negative, some intended and some unintended. None-the-less, we are once gain reminded that what we’ve been led to believe about our financial systems for years is in fact an illusion. Institutional economic collapse has happened before the reality of “globalisation” and it is happening again today with the complexities of globalisation… We don’t need a PHD in economics or listen to CNN to figure this out. The underlying human suffering and the desire to backfill happiness with wealth and power in an unprecedented rate globally I feel is closer to the truth of our current situation, and only once we are able to truly internalize this can we create solutions that will bring prosperity for everyone.

Its another fitting occasion today after the meltdown of global financial institutions that we are once again reminded that the way to get us out of the mess caused by the sub-prime loan fiasco is to increase our individual spending.. Is it me or everyone who has their fingers on the monetary policy of this nation(an other global financial partners) are out of sync with reality. It was greed and the desire for consumers to want more “stuff” that got them into trouble in the first place. How quickly we forget the true reasons behind the sub-prime meltdown..it wasn’t people with bad credit but people who had eyes bigger than their stomach… Somehow we are told that the way to fix the current problem is with a solution that caused the problem in the first place… What are we going to hear next from the Fed : “we must relax lending policies so that we can bring back more sub-prime loans?” We are ripe for a change in how we consume, how we measure health of our societies, how we take care of everyone so that artificial financial situations don’t devastate us? Remember the time in human history where the only societal crisis was a natural disaster like a volcanic eruption or a flood? I think we all know how we got ourselves into this current mess…