Something inside me died today as I saw the news item on the approval of the $700 billion bailout package in the US Senate on TV.
Most of my adult life I have been a strong believer in the power of free markets with minimal regulation. When I was growing up, I lambasted India's socialist inclinations, and the bias towards self-reliance as opposed to doing what we were good at. I argued passionately with the socialists, and sold them the capitalist dreams - often successfully. Intellectually, the capitalist free-market always made sense - the power and magic of the invisible hand was intoxicating. I am not sure anymore. Looks like the market needs some help from the socialists - USA, the beacon of free markets, is taking a path that betrays the very foundations of its economic philosophy.
Someone give me some oxygen, I am suffocating!
2 comments:
Nitin,
I do not think we should trash the american 'independant market system' just with this occurance. The fault I think lies with the govt - in a market economy, the US govt has to ensure that conditions are kept in place where the american market and enterprise is able to blossom and flourish. This they have not done by failing to understand and reacting to changing international & national finance, political, social conditions - one can only say that while the rest of the world is becoming 'smaller', US stands aloof & insulated from the rest of the world clinging onto the old 'american way of life'. In time, they have to change - in fact they already are changing - one just has to hear Barak Obama talk.
Sunil Damle
Well said Sunil. I am a firm believer in the market economy and I know that the system will bounce back - I don't believe there is another way.
However the market economy has to function in the context of our society. Capitalism requires a very delicate balancing act through just enough regulation to make sure that the system functions smoothly. Once in a while this balance goes out of whack due to greed and arrogance and result is there for us to see.
On another note, I believe that in the next 25 years America will lose its leadership position in the economic world, unless they change their ways very quickly. However that is a separate topic of discussion...
Post a Comment