How to Solve Problems
I am not an economist but I do have some thoughts on the present crisis and ideas that could generally be applied to the situation.
The Problem Is Not a Shortage of Rope
People that made poor, sometimes negligent, sometimes fraudulent decisions got us here. How will giving them more money get us out? How can those selfsame people now contribute to a solution?
Past Inaction Is Not a Qualification
Giving more coercive power to people who were in place to foresee and act on problems early and totally failed to do so is not a wise strategy.
Broad Based Failure Is Endemic of Fundamental, Systemic or Prevailing Problems
In an example germane to my life, patching cracks in a wall that sits on sinking foundation solves nothing. Likewise, trying to patch up broadly floundering economic system and tack on ancillary regulation doesn’t address the underlying problems that created the immediate situation.
Unknown Problems Cannot Have Known Solutions
I’m not claiming to understand the scope of the problem myself, but if someone asked me how much money it would take to fix a problem, I would make sure I understood within a reasonable amount of certainty what needed to be done before I quoted a number.
Are You Negligent or a Liar?
Even last week, there were a lot of people in power, ostensibly intelligent, who were claiming that the current crisis was isolated and controllable. Now, however, many of the same people claim that without immediate, unquestioned granting of unprecedented power and money that the sky will fall. While much has happened since last week, the only two explanations are that previous statements were either intentionally false or made in ignorance. Neither are qualities I desire in those overseeing our economic system.
I doubt congress reads my blog, so all of this thinking is probably in vain. Big companies have lobbyists and rich CEOs have friends, but the taxpayer has nothing.
And people ask me why I’m a cynic.
26. September 2008 at 13:44
I’m so happy you wrote this, now I don’t have to and I can just link to your blog of eloquence on the matter and swear a lot on mine.
27. September 2008 at 07:42
That’s why I’m here.
27. September 2008 at 07:54
Your multi-blogs(?) are even more confusing than mine!
27. September 2008 at 11:43
@andy
I’m not sure what you’re talking about.
27. September 2008 at 14:11
Right on Josh, I cannot think of a time in my life where I was more angry and disgusted with the government. AS far as any of them reading your blog… at the least you should paste it into an email and send it to all of them!
Once again, the humble taxpayer works hard and gets stiffed…
29. September 2008 at 14:12
Just to mention it, this guy has a great head on his shoulders: http://www.johnmauldin.com/ I read his (free) “Thoughts From The Frontline” and “Outside The Box” newsletters every week, and I’m regularly impressed by his insight into the economic world.
He is generally a free-market guy but his most recent TFTF was an open letter to his congressman explaining the situation (somewhat technically) and making a cogent case for why a stabilization plan is needed to quell panic and avoid a possible depression. It’s worth a read, if you have time and don’t mind some of the technical stuff.