This is a great piece on something I've thought a lot about lately. How often do we as individuals react to pain or loss with blanket statements and logic which later doesn't serve us? How much money do we spend on Psychiatry and Psychological help to deal with these momentary judgments that we didn't have the time to make well?
Governments are made up of people like us. They want to help or look like they're helping. So they make laws so we won't have a certain experience again. These laws stack, one on the other, made in the heat of the moment. Our system isn't set up to repeal them but create new ones over the top of old bad ones. How often does this occur on a personal level as well. I notice that when I was younger, smaller and much disadvantaged to the adult world, I made many decisions that now later I know aren't accurate but it's hard to find where I planted their seeds in my Pysche.
Why do I say all that? To show how something made by us personally is not so different from something made by us collectively. So this concept of FDIC insurance might have been a good idea at the moment but is it a long term good idea? Let me take this to the personal again for aide in describing my thoughts. We teach our body to do new actions by doing new movements and then turning those movements into muscle memory where we don't have to consciously be aware of each movement. This allows us to stack more and more of these until we can drive a car without barely being aware that we're doing it.
What does this have to do with FDIC. Well when was the last time you worried about the bank you put your money into? Is this a good thing for you, or a bad thing? Here're a few of the advantages: I can get on with my life without the worry plaguing me; money is safer to accumulate so more people put their money there; it gives stability to our banking system; it allows for economic growth; I don't have to know anything about business and can trust the government to take care of it. Now I'll list a few of the downsides: we take from our tax dollars (money we've taken from other individuals to give to other individuals and groups) to back this system; there is less risk to banks for reckless lending and behavior; we have socialized the risk of the banking system; we have been individually "dumbed down" because we now don't have personal responsiblity for the safe keeping of our money; we create money that moves around faster and thus creates more money in the market (money velocity) which can help create malinvestment; supports us to personally go unconscious around finances and our personal money; gives to others the power to irresponsibly spend money taken from us (our tax dollars).
I offer this as something to think about. It's not necessarily as benign a service as it seems.
Re: New Laws Stacking Up
ReplyDeleteI remember Jesse Ventura while running for Governor suggested: “You know what? Let’s do something really revolutionary. Let’s make it where every third year the legislature can only come back and repeal only outdated laws rather than create any new ones.”
Couldn't do it of course as the State Constitution would have to be rewritten.
Great idea!Always interesting to hear his ideas on things. I don't always agree but he makes me stop and think.
ReplyDelete