"Back in 1983, the hundredth anniversary of Keynes's birth, Forbes magazine declared that it was not Keynes who knew the way, but another economist who shared the same birth year as Keynes — Joseph Schumpeter. Instead of the government intervention that Keynesians demand to prop up the economy and failed businesses of all types, Schumpeter believed that capitalism is driven by entrepreneurs whose innovations replace old worn-out business models in a process he called 'creative destruction.'"
Capitalism is stressful. Here's a guy promoting 'creative destruction.' I'm sure the people at GM are thrilled by that description.
I'm not saying that capitalism isn't the best system for increasing everyone's standard of living and solving the associated problems ... I'm just saying it is stressful. GM should go out of business - as soon as possible - but that doesn't take away the stress of the situation for GM car owners, investors, bond holders, dealers, suppliers, and yes, union workers.
I'm not sure captialism needs to be as stressful as it is. I think it's as stressful as it is because of fractional reserve banking. Basically that means everyone is in debt all the time. Bankers think that's great because they are in the business of loaning money (especially money they don't even have!). But I don't think it is so good for everyone else. I think it stresses everyone out and we end up in a situation where the Austrian type economic folks end up sounding like assholes because they advocate things like 'creative destruction' and the joys of deflation.
Again - deflation can be a very good thing. Creative destruction - businesses that don't make sense going out of business - is good.
But who's going to win over the public view? The people arguing in favor of unemployment, in favor of businesses and banks failing, in favor of 'creative destruction'? Or the bailout people?
(Reduce your stress: read my novel Nano-Plasm and have some fun!)
[Update 2015 05 25 - Six years later and now I own a Chevy Volt! I never thought I would own an American car. But ... this thing was clearly a labor of love for a smart team of engineers. I like it!]
© 2005-2008 Stephen Clarke-Willson, Ph.D. - All Rights Reserved.