Moral Bankruptcy
Why are we letting Wall Street off so easy?
By Joseph E. Stiglitz
Mother Jones
January/February 2010 Issue
Joseph Stiglitz' new book, Freefall: America, Free Markets, and the Sinking of the World Economy, is in stores as of Monday....
IT IS SAID THAT A NEAR-DEATH experience forces one to reevaluate priorities and values. The global economy has just escaped a near-death experience. The crisis exposed the flaws in the prevailing economic model, but it also exposed flaws in our society. Much has been written about the foolishness of the risks that the financial sector undertook, the devastation that its institutions have brought to the economy, and the fiscal deficits that have resulted. Too little has been written about the underlying moral deficit that has been exposed—a deficit that is larger, and harder to correct.
One of the lessons of this crisis is that there is a need for collective action, that there is a role for government. But there are others. We allowed markets to blindly shape our economy, but in doing so, they also shaped our society. We should take this opportunity to ask: Are we sure that the way that they have been molding us is what we want?
We have created a society in which materialism overwhelms moral commitment, in which the rapid growth that we have achieved is not sustainable environmentally or socially, in which we do not act together to address our common needs. Market fundamentalism has eroded any sense of community and has led to rampant exploitation of unwary and unprotected individuals. There has been an erosion of trust—and not just in our financial institutions. It is not too late to close these fissures.
(More here.)
By Joseph E. Stiglitz
Mother Jones
January/February 2010 Issue
Joseph Stiglitz' new book, Freefall: America, Free Markets, and the Sinking of the World Economy, is in stores as of Monday....
IT IS SAID THAT A NEAR-DEATH experience forces one to reevaluate priorities and values. The global economy has just escaped a near-death experience. The crisis exposed the flaws in the prevailing economic model, but it also exposed flaws in our society. Much has been written about the foolishness of the risks that the financial sector undertook, the devastation that its institutions have brought to the economy, and the fiscal deficits that have resulted. Too little has been written about the underlying moral deficit that has been exposed—a deficit that is larger, and harder to correct.
One of the lessons of this crisis is that there is a need for collective action, that there is a role for government. But there are others. We allowed markets to blindly shape our economy, but in doing so, they also shaped our society. We should take this opportunity to ask: Are we sure that the way that they have been molding us is what we want?
We have created a society in which materialism overwhelms moral commitment, in which the rapid growth that we have achieved is not sustainable environmentally or socially, in which we do not act together to address our common needs. Market fundamentalism has eroded any sense of community and has led to rampant exploitation of unwary and unprotected individuals. There has been an erosion of trust—and not just in our financial institutions. It is not too late to close these fissures.
(More here.)
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2 Comments:
Why should the little people or anyone for that matter have to anyone play by the rules if the Treasury Sec. only pays back taxes through the statute of limitations? Why were the rules adjusted for Freddie Mac and Fannie Mae when Congress was on Christmas break?
Thank you, Tom!!! I just love all these government panels and pro-government pundits who turn a blind eye to the groundwork laid by the government as the root-cause of all these problems. The banks and the financial collapse are the mere consequence of so much government meddling - it's all about re-election for the Frank's, Dodd's, et al. Greed was a certain part of the problem - and I'm talking about Government Greed. But, let that pass. Let's all let Frank and Dodd beat up on the banks to cover their own asses. Those of us Americans with a brain know the culpability goes straight to Congress.
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