A combination of Good Intentions with Gross Incompetence and Irrational Greed has brought the American Economy to its knees. The incompetence and greed have been so bad that it has effected economies world wide.
It all started with the creation of an Artificial Person created by Law called the Cororation. This monster gave human beings called CEO's the freedom to use vast sums of other people's money and gamble with this money without any personal liability for irresponsible action or poor judgment.
In the beginning, with presumed moral responsibility, the corporations enabled the USA to amass greater wealth than any other nation has ever been able to achieve short of war and plunder, even though war was a factor in the equation for American prosperity.
The Free Business Enterprise System was an ingenious idea to legally manage the peaceful distribution of wealth according to each person's individual efforts. It was much like a sports event with presumed rules of play to ensure a fair game. The weak spot in the system was the "Business Cycle." When the supply exceeds the demand, a recession sets in. If the supply continues to exceed the demand, a depression results. In a wide diverse economy such as exists in the United States, businesses that continue to over supply can go bankrupt and fail, and other segments of the society can remain healthy to avoid mass depression. (a major crisis) Businesses with conservative management that voluntarily use restraint in over expansion can successfully weather the storms and expand when demand increases.
Unfortunately, Government has intervened to bail out failures and subsidize special interests in a botched attempt to manipulate the "business cycle." The Government further damaged the system by deregulating responsible rules
to curb excessive greed and avoid unfair exploitation. As a result many who were immuned from personal liabiltiy let their greed get out of hand and irresponsible exploitation developed to bankrupt the system.
Basically, it was the investment corporations that led the greed craze. The role of these corporations was to enable industry to develop and expand, gaining a portion of the industry's profit as their reward. As CEO's with limited liability and no regulations to stop them, investment corporations evolved into gambling establishments with great personal rewards for a winner and no responsibility for a loss. When irresponsble risks produced excessive losses and investment corporations ran out of funds, the Government took taxpayers money to pay for the losses. This, of course, was in complete violation of the Free Business Enterprize System, financially and morally, bankrupting the System.
The cause of the crisis is simple and the solution is simple as well, but the problem is not easy to solve, and it may be impossible.
Changes are needed. Control must be given back to the owners. (the stock holders) The free ride with limited personal liability has to go. Regulations have to be enacted to provide a fair game, but Government Intervention has to cease!
WHAT DO YOU THINK?
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