October 28, 2008

Regulation Is GOOD for the Free Market

Filed under: Politics — PolitiCalypso @ 3:39 pm

If you listen to John McCain and a huge number of right-wing “free marketeers” lately, you might walk away with the idea that a capitalistic free market cannot exist with regulation of business practices. They think–or want “regular” people to think–that if you have agencies of the law telling business what it may and may not do, it is tantamount to communism at worst, and destroys the liberty of the free market at best. “The consumer will punish businesses that do bad things!” these right-wing types proclaim. “There’s no need for government to get involved!”

Besides being, all too often, entirely untrue, this is a fundamental misunderstanding of what a free market is really supposed to be.

The architects of the U.S. established that the people ought to have the ability to choose what they wanted, both in government and in commerce. They felt that if people were given the opportunity to make choices based on what political ideologies, candidates, parties, or–on the economic side–products were most valuable to them, this was the best system. I would agree. A representative democracy has worked for us for over 200 years, and a free market has allowed innovation and competition to flourish. But, just like our government is not “free” in the extreme sense of “anything goes,” because that would cause anarchy and then a totalitarian takeover, the system of commerce does not need to operate under “anything goes” either–and for the same reason. (Read more…)

October 16, 2008

The Illusion of the “Netroots Movement”

Filed under: Politics — PolitiCalypso @ 5:21 pm

There are some very good reasons why I have never chosen to identify with the “netroots” movement or the politics thereof. One such reason is the “movement”‘s eagerness to take credit for anything good that happens to the Democratic Party in elections, when the simple truth of the matter is that outside circumstances shape elections. If I were superstitious, I’d worry that the onset of crowing about the apparent coming Obama win would jinx it. However, that would be the ultimate in assigning undeserved responsibility to these characters.

The political pendulum swings back and forth. As a liberal, I think that the more liberal party should be the natural governing party of the U.S., because we need to move forward continuously. However, there is a place for a more conservative party, a loyal opposition, that keeps the metaphorical feet of the liberal party firmly on the ground, and sometimes gets rewarded with power when the liberal party becomes corrupt or goes off on some kind of crazy utopian scheme. A big reason why politics in the U.S. have been so messed up is because the party charged with keeping everyone’s feet planted on the ground was emphatically not the “conservative” party. It was the “conservatives” who had pie-in-the-sky visions of using force to instill democracy in people and being thrown flowers for it. It was the “conservatives” who believed that the sheer beneficent nature of the rich would lead to a pretty unicorn world of unregulated markets promoting widespread wealth. The “hard realist” party, the one attempting to put the brakes on these kinds of ideas, was the Democratic Party. Traditionally, liberals were supposed to have optimistic ideas of human nature and conservatives were supposed to be more pessimistic and cynical, but, despite the slogan of the Obama campaign, that has been reversed. Liberalism is traditionally, and classically, not supposed to be the check on conservatism run wild, but that’s what has happened now.

What we are seeing right now in the U.S. is that natural cycle, albeit in an upside-down world. (Read more…)

October 7, 2008

Economic Terrorism

Filed under: Politics — PolitiCalypso @ 8:25 pm

“You give me what I want — or they DIE.” So speaks the hostage-holding terrorist, using the lives of innocents as a bargaining chip.

Apparently, the tactics of this lowest form of life have become accepted procedure in the halls of big business — specifically, big banking. It seems that the bailout plan may fail because CEOs and corporate boards won’t accept Uncle Sam’s aid. Why would they refuse it? Why, because the one part of this plan with real teeth — the limit on executive compensation and moratorium on golden parachutes — is offensive to their greedy sensibilities.

This is not going to be a long entry, because there really isn’t much to say about it. But let’s just think, very briefly (it doesn’t require more thought than this), about what they are saying. These individuals who are reportedly considering this — executives in banks that are on the verge of insolvency — are saying, in effect, that they will take down not just their companies, not just their customers, not even just the United States economy, but the world economy, because of their own personal greed.

Give them what they want or the world economy dies, in other words.

For the record, I — unlike many in the left-leaning blogs who knee-jerked and flip-flopped against the idea of crisis as soon as anyone associated with George W. Bush admitted that there was a crisis — do believe that the crisis is real, and do believe that is more serious than the S&L crisis of the 80s or the energy-driven crisis of the 70s. We truly are looking at something akin only to that of the late 20s/early 30s. And if this is indeed true, then that really tells you all you need to know about these pigs who are willing to commit economic terrorism — these suicide bomber CEOs who will take down innocents along with themselves because they didn’t get what they wanted.

(Needless to say, I am simply outraged about this. I very rarely draw parallels between terrorism and any other activity, because I think it’s generally very offensive and it reminds me too much of Rove-based campaigns that invoke terrorism. The fact that I am using such expressions tells you something.)

No wonder they supported the Paulson notion of $700 billion in taxpayer money — OUR money — with no strings attached. Apparently, these vermin (I won’t call them “fat cats,” as this is offensive to my 13-pounder Sox) intended to make out like bandits with it, rather than do anything at all to help their troubled companies.

No wonder trickle-down voodoo economics was an abysmal, miserable failure at stimulating the economy, if THAT is the caliber of the people who were supposed to do the trickling.

No wonder deregulation is a defeated, laughable economic philosophy now. If this is the mentality of the “winners,” then that is possibly the best case for aggressive regulation that could be made. They did my work for me.

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