Just over a year ago, Hiroshi Nakaso, a senior official at the Bank of Japan, started to fear that the global financial system was heading for a jolt. Back then, most American policymakers assumed that the western banking system was extraordinarily strong. Thus while US mortgage defaults were rising, western officials were convinced that such losses would be easily “contained”. (Big Freeze, Financial Times 03 Aug 2008) read more of the original
I see themes in this discussion. 1) Pride is abundant. When people think their models and theories are infallible they begin to make inappropriate decisions. 2) People are the first flaw in markets. When people are allowed to make inappropriate financial decisions everyone loses. This comes as a result of pride. See #1. 3) When people fail in the United States they seek a recovery from the government. The government make worse decisions than people. Instead of standing for what is right – they (government) give hand outs that perpetuate the false mentality that our current life style is sustainable or that people are entitled to have a car, house, or the dole. See #1 & 2.
An alternative approach may be the following:
1) Public Representatives are elected based on proposed service plans that span the life of their intended term. Their actions and accountability are measured against this plan. If a majority of the electorate lose confidence in this person’s execution of their plan they may be removed from office by a majority vote. Re-election is only considered for candidates who successfully complete their original plan(s).
2) Tax receipts are pre-determined based on proposed plans. Surpluses and deficits are allocated to/from social accounts assigned to each citizen in majority.
3) The government’s sole role is to protect from enemies foreign and domestic, protect property rights, serve as entity for public works, and enhance the citizen’s ability to develop happiness.
4) Citizenship is granted not by birth but by public service. (Admit: Influenced by Heinlein)
Throughout this roughly considered plan duty to participate, ensure stability, and performs rests not on the government or non-person entity but upon the citizens. Individuals rights are secured by individual actions. Collective liberties are compounds made from individual actions.
I cannot support a perpetual dole, nor the endless corporate safety net provided by the government. No longer is it right to absolve people of their duty to make correct decisions. I long for the days for social Darwinism to return – if you cannot survive then you won’t.