Failure Of “American Style Capitalism”

As the financial crisis morphs into a larger social crisis, the US Government is going to be forced to deal with a larger task.  The leaders of “The Free World” will need to control the emotions and the anger of their citizenry.

Since the days of the Reagan Revolution, political leaders have been able to convince the masses that the ideals of “laissez faire” economics lead to freedom and democracy.  The masses have been taught and educated by the most expensive universities and colleges in the world that hard work and consumerism will lead to happiness and freedom.

The current financial crisis could challenge those beliefs that have been firmly entrenched in American social thought since the 1980’s.  American society has become an overweight culture, indulging in food and gadgets that are not necessary to survive.  Ipods, Iphones, Blackberrys, text messaging, Gourmet Food - the list is endless.  Five thousand dollar World Series or Super-Bowl Tickets - $10 a cup beer,  $50 parking - Craziness.  Yet we continue.

Millions of Americans are now unemployed.  The numbers continue to rise - month after month.  As consumers retrench and spend less on unnecessary items, more businesses will fail and more consumers will lose their means and ability to purchase goods.  Housing prices will continue to decline and the “richest nation on earth” will begin to lose their means to stay the “richest nation on earth”.  This downward spiral in the economy will bring into question the underpinnings and ideals of American democracy.

I don’t question the ideals of “TRUE Democracy”.  I question the US Government that currently considers itself a Democracy.  The US Government has grown uncontrollably since the days of the Revolution in 1776.  Our nation was formed by a number of TRUE patriots.  These men truly believed in the ideals of Democracy and independence.  They risked their lives to break away from an opressive regime that was controlling them - in the hopes of providing a better life for their children and their families.  The Brittish regime was taxing them day after day and they didn’t really feel like they were getting enough in return.  Does the majority of the American population feel some of those same feelings today?  I do.  Things will change.  It will take time.
The Government will try to stop the decline.  Their solution will be to give Americans the means to purchase more goods, to consume.  That is why we are witnessing these massive bailout programs and spending bills being passed.   We are told by those in power that the more that we consume, the better it is for businesses and society.

When businesses are doing well, there is less reason for American workers to be uneasy about the social issues of the day.  Everyone is too busy working.   When Americans are fully employed, they are too busy to challenge the political infrastructure. The elected politicians and the US Government seeks full employment for its citizens because it’s one of the factors that aids in maintaining their status quo.  In other words, it keeps the same regime in power.

Capitalism and Democracy have gone hand in hand for generations.  The changes taking place today are dramatic and severe.  We now have a Government that has decided to take control of functions that were supposed to taken care of by “The Invisible Hand”.  Decisions like deciding whether or not to keep the automakers on life support.  The guaranteeing of commercial paper (private lending) by the Federal Government.  The unbridled expansion of the US Balance Sheet.   Essentially the Government has mortgaged our future even more than it had been mortgaged.  There seems to be no end to the uncontrolled spending by those in power.  Money is being spent by our government, through various Federal programs.  Future dollars to be earned by hardworking and honest American citizens are being doled out by the policians in a size and scope never befored witnessed in this country.  We are being told by those in power that this is best for us and our children and is necessary.  I question their thought process.

True capitalists would have let the automakers fail.  The banks would have gone out of business long ago.  It would have been a tumultuous and rapid fall under true capitalism.  Why has the Government gone to these extremes?

The TRUE reason that the USA stepped in and took the draconian steps to prevent a massive collapse in the banking system was to slow the possibility of chaos and social discontent.  It was to maintain social order.  It was to prevent rioting in the streets by those that have lost everything in the stock market, their houses, and their jobs.  It was to prevent the masses from getting in touch with their true emotions about the opression of the US Goverment.  It was done to maintain the status quo.  It was done to prevent the seeds of  a revolution from germinating.  Was this the right decision?  Perhaps we’re getting closer as a society to taking the steps we need to take.  Reshape our oppressive government.  The bailouts only serve to slow the march to the “new day” comrades.

The entrenched political regime wants to maintain their power.  The failure of “American Style Capitalism” (It has already failed in my opinion) could be perceived as a failure of “American Style Democracy” (also failed).  I feel that American Style Democracy has failed because the average citizen has lost their voice in Washington.  They are forced by Big Brother to pay taxes without representation.  We are led to believe that we have representation because every four years we get to drive to the local school and cast our vote for 1 of 2 choices.  Is this Democracy? American citizens are politically powerless.  The US Government, now more than ever before,  is controlled by business interests not just in this country, but around the world.   Globalization has resulted in Global Oppression by the political elite.

Those in power need to be need to hear us - Americans need a fresh start.  This country needs to embark on a new direction.  Our current regime is opressive and cannot stay in power any longer.  I consider myself a true patriot.  I’m willing to voice my concerns in the hope for a better tomorrow for my family and my children.  In today’s politically correct society, it’s Un-American to be critical of American Democracy.  I believe in the true ideals of Capitalism and Democracy.  I don’t believe in American “Brand” of Democracy and Capitalism.  We are told that the American Brand is the only way.  I disagree.  I am a true American.  I hope for a better solution.  I hope for a better tomorrow.

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Comment by Dr. Sebastian Uremadu

2008-12-21 10:16:35

The way out could easily be profered if economic seers like some of us will have an opportunity to visit America as I did in January 2008, to attend an AFA Meetings in New Orleans, and witnessed first hand some of the ills of American economic and financial system. USA I feel needs to be remodelled. An American hotel bus driver who took me to Washington Dulles Airport complained so much about so many things about American work environment. USA thrives under principles of large scale production and it looks to me that America has reached its maximum growth level in the new dispensation and it needs a new economic model design that will open new frontier of growth. I feel America should involve people like me, an Associate Professor of Finance and financial economic seer in some of these global study group or committee via World Bank and IMF to participate in looking into American economic and financial challenges and profer lasting solutions in the new world order. My local Igbo adage says, ‘it is when an event is before you that what to say will emerge’. Just recently Ireceived a call from American Embassy in Nigeria that they were coming to my University next day and that when they come they will ask me some things. I zealously looked forward towards that appointment as it would have afforded me opportunity to open up discussion with them on ways out of this global financial crisis, unfortunately I waited throughout the day to be called to meet with them but that call never came, even though I rightly informed University authorities that the Americans are to speak with me. I look forward for such opportunity in the future.

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Comment by Dr. Sebastian Uremadu

2008-12-21 10:23:37

It is a doable thing to create new jobs for working class group in America or in Nigeria if knowledgeable people like some of us are given an opportunity to show the way and apply it. I can do it if given the chance be it in my country ,Nigeria or in America. I can look and see the solution as an economic and financial seer just as Joseph did it in Egypt. Only let me be given a chance and it will happen.

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