There could be spiritual problems associated wuith this economic fiasco.
But I say the root cause in this specific recession is government intrusion to what should have been a purely business dominion.
Lending money to people that could not afford to pay it back, is not a principle of good fiscal responsibility, but rather foolish, idealistic, social engineering gone to seed.
Steve,
I am not saying that the root cause is spiritual but our response is a spiritual issue.
My understanding of the root cause is quite the opposite of yours. The financial problem one of an unregulated banking industry that sold deceptive products to gullible people for a quick buck. Secondly, the root of the recession is a structural problem of wealth polarization caused a myriad of causes including health care costs, tax policies that favor the wealthy to heavily, executive pay and the global heightened competition in the markets.
Not that I plan on convincing anyone...
Steve,
You have some good points there.
Capitalism is not perfect. People are sinful. But a big government is dangerous. it will make things worse to the point of taking our freedoms away.
Equality of outcomes is not the American way.
Govt. intrusion caused this mess and govt intrusion will definitely make it much worse.
But it sounds to me like you are expecting 'government'....mostly made up of unrepentent sinners to make 'good decisions'....Greed is a real problem and goes to the heart of man...We are to 'render unto Ceasar the things that are Ceasar's' and not to 'worry' about this world other than to offer to proclaim that Jesus offers the way to forgiveness, new life for us...real changes in US and let the world be. We can vote and certainly try to make changes that help but to spend time and energy talking about this problem doesn't serve much of a purpose other than maybe to make you feel informed and 'heady'...Brad I appreciated your blog sooo much more before you started trying to discuss the world's problems on this blog
Peace and love
Donna,
No quite the opposite. The role of government is to restrain evil (and bad judgment too). What has happened is that a philosophy has been embraced that says that "markets" are good. By markets people really mean unregulated human free will. It is this view that is actually the more naive view. Instead, knowing human frailty we regulate human activity.
A great example is the unregulated area of financial products like Credit Default Swaps. Banks were allowed to hold no reserves and they hedged credit default with insurance and had no actual reserves. In such a situation, even a 1% default rate can take down the whole house of cards.
Greenspan and the like said this cannot happen because human beings are economically rational. BUT human frailty has proven Greenspan and Friedman and all the rest completely wrong. Markets are not self-regulating and human beings are prone to greed and wishful thinking about enormous wealth than they are to personal responsibility and rationality.
I think a strong view of human moral depravity leads to a stronger role of government not a weaker role.
"I think a strong view of human moral depravity leads to a stronger role of government not a weaker role.
Except for the fact that goverments are run by those same depraved people..only more so...because powere corrupts and absolute power corrupts absolutely.
Our founding fathers knew this and that is why they opted for smaller government.
Thomas Jefferson said, "The governmebt which governs least, govers best,"
Jefferson never was a very good speller.
the only problem is that God has instituted government to restrain evil which happens to be my point. Not using government would be a good idea if there was some other option. Asking the markets to regulate themselves is asking God to do something that He has asked us to do.
Brad,
Point well taken. Good to have rules (Govt. as referees)
Bad to have Govt. in the role as player/coach.
That ought to be reserved for the private citizen in private enterprise.
Thanks Brad!
- Steve
PS- I've got a good (very short) video of Friedman explaining this to P. Donahue (on my site...a few posts back)
interesting points taken. Great job...
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