I was chatting to Ang the other night about the economic crisis, and I can’t help but think this is just a big “reboot” – the market correcting itself after years of abuse.
And if you’re a true believer in market economics, now is the time you should be arguing that we need to let this happen, as it is “the way of the market”.
What’s interesting is that’s not what’s happening. Instead we’re seeing what amounts to the biggest nationalisation project the western world has seen in a long, long time. (As Wade says: “So the AU govn’t is assuring all credit. Now all these private companies are publically funded. Remind me again why privatization is good?”)
We need this correction – to stem the tide of greed that has flooded the economic system over the past few decades (in this sense I agree somewhat with what Marc says on the matter – it’s not just the CEOs and banks at fault).
I’m actually fairly liberal (note the small “l”) when it comes to markets. Testament is the fact I’m starting a business as my method of achieving social change. With that in mind I say let the market do what it does best – let it balance itself.
Maybe I’m naive, but I think that such a correction would see a blossoming of sustainable businesses to fill the voids left by the unsustainable ones that toppled the market. In “sustainable self reliance as David Ransom puts it [via Wade]). Perhaps that’s part of the “balancing” process – a recognition that business does not operate in a vacuum with infinite resources and growth.
Yes there will be significant fallout that will affect a lot of people – some who can afford to “ride it out” and others who can’t. But instead of investing billions in banks (essentially supporting those who can afford it) why not funnel those dollars into support mechanisms for the people that are most directly affected, in their day to day lives, by the crisis. i.e. the ones who will need assistance with their rent and food bills, not bolstering their spouse’s trust fund.
That could take the form of state-run services – which, after all, is what the state is meant to be for (to pick up the pieces where/when the market fails). But could mean many things – I suspect many of them better than propping up corrupt executives.