Posted by
Rebel Conservative on Sunday, November 23, 2008 8:10:39 AM
In Response to Ken Connor's "
But Regulation IS a Good Thing"
First, I do agree that as an aggregate in our society, we are showing more of the bad choices, and fewer of the good choices. I believe that this is the point where our agreement will end, however.
First, Paulson's actions are easily identifiable. He is exhibiting the very greed you are lumping on society. He has injected capital into banks in classic crony capitalism fashion. If you can help your buddies have an easier time through a tough time, make it happen. That succinctly explains his actions. His rationalization for his actions are irrelevant.
Next, throwing laissez-faire capitalism under the bus without properly explaining your context is dishonest. The fact that regulations are unpredictable and undeniably dishonest and unfairly distributed explain a great deal more than the claim that laissez-faire would equal chaos, or is to blame for the current business climate.
Quite the opposite is true in the real world of business. In local communities, the reputation of the business and its practices are evaluated at every transaction. You must provide an honest effort and/or product, in order to continue to receive business from the individual who is purchasing from you.
It is when the business learns to take advantage of government regulations and exerts force via government fiat that the real examples of greed exhibit themselves. The more you make these tools available to business, the more they will attempt to leverage them against their competition. Government's own chickens coming home to roost.
These same tools were handed to the end consumer in recent history. Too easy credit, coupled with government guarantees on extremely high credit risks to purchase homes built an unsustainable business environment.
That same environment allowed many bad actors to enter and earn capital for themselves temporarily in a field that they had no real interest in sustaining, and no real interest in providing honest effort when the easier effort was so readily available.
Government cannot control free will. It can only punish ill behaviors after the fact. When it intentionally removes the honest constraints of credit and even, fair distribution of rules, it invites the bad actors to take advantage of the inherent unfairness, and creates the very environment that you are discussing.