Wednesday, October 6, 2010

The Pledge III

In its Pledge to America, Republicans promise to deregulate business. That was tried just a few years ago and gave us such wondrous things as mortgage-backed securities and credit default swaps which led to the near collapse of American financial institutions. In response, George Bush initiated a bailout of the major corporations and Obama wisely followed his lead. Thus, the nation was saved from an economic collapse that would have made the great depression of the last century look like a Sunday school picnic.

From my perspective, government should not institute an inordinate amount of regulation on business. The free market system works best when it is free from overly vigorous restraint. However, it also works best when the market players restrain themselves from the temptation to engage in fraud and manipulation that is destructive of people who trust their surplus funds to them for investment purposes. In recent times American business has not been able to restrain itself. Rather our business leaders have sacrificed themselves on the altar of filthy lucre. Mammon is indeed the deity of choice for the accumulators of wealth in America. Thus, the need for some degree of regulation.

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