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Old 09-22-2010, 08:47 PM   #55 (permalink)
Wes Mantooth
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Quote:
Originally Posted by filtherton View Post
Except that for this particular analogy, you have to keep the finger after you cut it off. Perhaps we're stretching it too far.

I agree with you that there is no one size fits all solution. However, the idea that we should let entire sectors of our economy fail based on a vague notion of economic Darwinism doesn't, to me, seem like the stuff of good economic planning.

Right now, the domestic auto industry seems to be making a bit of a comeback. If the "let 'em die" folks had there way, we'd instead have a sucking chest wound where the domestic auto industry used to be. Odd that these are some of the same folks who are complaining about Obama's performance with respect to unemployment. I would expect that in their world, periods of high unemployment would be a sign that the economy is working like it should- you know, crushing the unworthy, creative destruction, etc.
Sure, I mean I'm not an expert on this stuff by any means (I'm sure everyone can tell). I agree I think the auto industry was simply to big and I'm not sure that somebody could have just come along, set up shop and filled in the hole (I'm sure the same can be said for the banks as well). But isn't that the biggest problem of all? Allowing industries or companies to grow so large that their failure essentially holds the nations economy hostage? I would think a healthy market would have enough competition that someone else's failure should turn into another's gain...but I suppose that's why theories don't always apply to real life.

The biggest concern I have in all of this is weather or not popping up these failed sectors is just temporary solution and a larger crisis is looming down the road due to industries that are so diseased they simply can't be fixed. Is it possible that taking a hit now and allowing the industry to rebuild with a much sturdier foundation going to be better for all of us in the long run? Perhaps now that we've gotten them a little more stable and they won't all collapse at once it might not be the worst thing to let a little economic Darwinism to take place. I don't know, just throwing it out there.

Best of both theories! Awesome!
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