Wednesday, August 24, 2011

Is Faith in the Economy Equivalent to Selling the Judicial System?

I've been pondering the philosophical implications of fiscal decisions lately and it occurred to me that putting faith in the economic stability of the American financial institutions is basically the same as saying you don't expect to see justice done.

In a just world, the banks who perpetrated the events that led to the mortgage bubble would suffer the consequences of their actions and there would be serious penalties to them for the questionable ethics that led to the collapse. Of course, there would be pains aplenty for the nation, but in the end the concept of justice would be reinforced and bankers would be forced to think about the consequences of their actions before they created another giant vortex of bad decisions that sucks the wealth out of the middle class.

Bailing out the banks over and over again is a critical failure in our system of government. It is an absolute insult to the concepts of democratic government and capitalism that the concept of "to big to fail" even exists. The fact that the average American still seems comfortable trusting their money in the hands of the same corporations that violated them in the first place is a testament to the fact that we have given up on the judicial process.

If we really believed the government was going to do the right thing, our faith in the big banks would have evaporated. We have subconsciously abandoned the idea that those who behave responsibly will prosper and those who are incompetent or untrustworthy will suffer. We are a beaten people.

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