Clarity and Consequences

My college friend Joe Ganem posts on the BP oil spill. He doesn’t blog often, but his analysis is clear and insightful. His conclusion skewers the lawless state of affairs at the corporate pinnacle:

Unfortunately, the most likely outcome of this disaster is that nothing will change. There will be calls for tougher regulation, but, just like the financial overhaul working its way through Congress, change will be cosmetic. Opponents of more financial regulation use the same rhetoric as opponents of more oil industry regulation. They denounce increased regulation as an attack on “free markets.”

But for “free markets” to work the agents must have a personal stake in the outcomes. Real free markets are composed of the thousand of small business owners and their workers who have a personal financial stake in their successes and failures. It’s a sham to say that the executives of banks and oil companies are agents in a free market when they can only reap profits, while everyone else pays for their losses.

The real problem  in modern capitalism is that it’s like every cliché of the Old West: full of bullies, helpless sheriffs–the very portrait of lawlessness. For the guys with guns, there are no personal consequences for bad behavior–at least not in this life.

About these ads

About catholicsensibility

Todd and his family live in Ames, Iowa. He serves a Catholic parish of both Iowa State students and town residents.
This entry was posted in Politics. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s