Sunday, November 29, 2009

Is our economy doomed?

Joseph Alois Schumpeter (8 February 1883 – 8 January 1950)was an economist and political scientist born in Moravia, then Austria-Hungary, now Czech Republic. He popularized the term "creative destruction" in economics - thank you Wikipedia.

Dr. Richard E. Hattwick referred to Schumpter saying, "Business ethics is an important subject. It is important to individuals acting in their economic roles because living up to one's ethical ideals is an important dimension of one's self image. It is important in terms of the survival potential of an economic system because, as Schumpeter suggested many years ago, an economic system that is perceived as morally wrong, is doomed to ultimate demise."

It's interesting to note here that Schumpter was a student of Austrian economics. Clearly, one of the few and possibly the only person in all of congress who has a grasp of what is going on with the economy is Dr. Ron Paul - who was also a student of Austrian economics. It's amusing now to see the media who once shunned Paul as a lunatic to consult with him on matters of the economy more than any other politician.

Dr. Paul also has an incredible record of integrity in Congress with consistent principle, reasoning and policy for almost all of his voting activities. As Dr. Paul has said many times over, the government's meddling into the economy, providing bailouts and desperate regulations at an almost incalculable cost, is interfering with what could be a much swifter recovery of the economy. And although Paul has noted that the government's actions are inequitable and wrong in principle, to the best of my knowledge, he's not yet made the leap back to Schumpter's conclusion above.

Today many people see the inequity and moral upset of one person who over spent and did not take their finances responsibly being rewarded by the new system of bail outs and hand holding the government has adopted of late. While, hard working, smart thinking and forward planning people are forced to slug through the mud of the current day situations with no relief or assistance. The perception is that our economy has become a lottery and skill, hard work or responsibility have little to do with success or... morally wrong.

Let's hope Schumpter was incorrect or overlooked a turnabout. One thing is for sure, a turnabout is exactly what we need. The people who drive this economy, the producers, creators, entrepreneurs and hard working people are having their spirit broken by this upside down math. 2010 is the time to change this. Politicians who support this upside down math are the destroyers. Make sure they're out in 2010.

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