I crossed an intresting article in the Time about the current state of the economy. Which openly challenged the current federalization of corporate enterprises in America. While I'm aware this is a fresh topic among some bloggers, I was urged on in my idea to add my comment when I recieved an article from my father entitled "What Peter Drucker Would Have Said?". While I have not been able to find where the article was from it quickly capitalized on many of Drucker's hypothesis' about the direction the US economy and where we were today. In fact in one of Drucker's last articles he mentioned the shift of financial power shifting from New York, where financial power has been since it's days as a trading post in the colonies, to Washington D.C. and this year with the current state of the market it seems that his hypothesis' may be increasingly right.
Throughout the history of the US we have abided by the laissez faire stance of economics as introduced by John Keynes. However recently it seems that as we've relied more and more on the credit industry to help fund our efforts and now we need the federal government to come and bail out an economy that for years screamed hands off until it needed help. The problem however is that with the federalization of the economy, not just in the US but globally, we face needing to deal with the govenment regulations and rules that can further restrict and suppress natrual growth. However another intresting problem is in the belief that the experts of wallstreet really were experts. Instead they were just men who can now rely on a government paycheck to bail them out of their mistakes. Much like NASA making a miscalulation that loses millions of tax payers dollars these financial experts have lost billions of dollars and hope only that the US government that they are protected under will bail them out. What comes next? When teachers don't teach will the government start doing it for them? For a humours and contemporary look at this issue please take a look at how the world of sports sees the issues of the financial market. (editors note: please read up to the first heading, and a reminder that this was written as a joke and not an actual new story. Also the most entertaining look at why the Yankees failed to make the playoffs this year.)
Subscribe to:
Post Comments (Atom)
1 comment:
I like your post. The laissez faire approach was working but it did not really help us out to help prevent this credit crisis. The huge crisis has come back a few years before now. It is just now companies are reporting awful earnings and the big hedge funds are shorting their shares so that these financial institutions are almost run to bankruptcy. You did not mention how this started in the first place. The government was being laissez faire by letting foreign investors invest in our economy. As it turns out that did not work and the borrowing rates were too low which killed huge financial institutions like AIG and Lehman Brothers.
The people on Wall Street did what they could with this laissez faire stance but it seems like it did not work.
Post a Comment