Watching the economic crisis has made plenty of Americans question the condition of our great country’s economic constitution. I am sure that many have good reason for this, as their investments, home equity, and other assets have dwindled away with the tumbling stock market. Some have even found it very difficult to maintain their standard of living in day-to-day provisions like feeding their family or themselves.
We have also seen both presidential candidates take stabs at the other, attacking their opposition’s plan as bad for the American economy. The Republican platform is to criticize the raising of taxes, ergo hurting business, ergo decreasing jobs, ergo hurting the economy. The Democratic platform is to criticize cutting taxes for big business who don’t deserve it, ergo contributing to big business and wall street corruption, ergo artificially raising prices, ergo hurting the economy (not to mention that it’s “not fair” to the middle class).
Perhaps one is right and not the other; perhaps both are right; perhaps neither are right. History will be a better judge than I. However, the current crisis, in the grand economic scheme, is nothing more than the market adhering to its own system of equilibrium. No one should have legitimately expected the stock market’s relative boom over the past 10 years to continue at its rate. After all, the Dow Jones Industrial Average outgrew the relative population 100 times over. Plenty could have been done to slow it down, and many have called for it. Most recently, former President Clinton in January of this year called for Americans to slow down the economy (that is, slow down borrowing, lending, and spending). He received widespread criticism from both parties for this comment, but perhaps he saw something coming and offered this as a preferable alternative to what we are facing now.
Nevertheless, the stock market has plummeted, and we must deal with it. It is now just as unreasonable to expect an overnight fix as it was to expect the former rate of economic increase to continue. However, just as Americans refused to believe that the bubble would burst, they refuse to accept anything but an immediate fix. Both parties have campaigned on a platform for quick fixes because they know this is what Americans want.
What America needs is a reassessment of priorities, and there is no better time to do that than now. The crunch we are all feeling will force us to make sacrifices that we didn’t have to make last year. This is a good thing! The materialism of America has been dealt a serious blow, but the opportunities have not. It is the delectation of Americans to turn crises into advancement. It may take longer than we want, and it will definitely take harder work than we want, but that IS what it will take.
Regardless of party affiliation, we as average American individuals should never EXPECT to be lifted out of financial turmoil by “big brother.” If the government can assist, great; but nothing can substitute, and nothing is more rewarding than hard work, sacrifice, and innovation. Additionally, when it comes to state assistance, one should always remember that if one person, business, demographic, or group is being helped by the government, an equal number will eventually be harmed. This is the principle of equilibrium.
