Friday, October 24, 2008
Alan Greenspan and capitalism
So Alan Greenspan was “shocked” by the failure of his ideology! How about that folks??? He was shocked that people all acting in their own interested resulted in an economic disaster. The great stalwart of modern capitalist ideology was surprised by this??!! Of course if he had paid attention to even the simplest games theorists like John Nash or Garret Hardin, then he would have known what was coming. The game theory called ‘the tragedy of the commons’ tells you all you need to know. Capitalism, if it is to work at all, must not let the self interest of individuals go unchecked but there must be mechanisms to protect us from the excesses that lead from people’s self interest. It is not very complicated and the fact that Alan Greenspan who was chairman of the Fed for all those years didn’t understand this shows that either he was irretrievably stupid or that capitalism is a hopelessly blind ideology. Well I think in this case it both factors came into play. Now, I am a socialist and an idealist and I can live with the idea of a mixed economy for now, perhaps that is all that the human psyche is prepared for at this moment in history. But it is finally time for people to wake up and understand that certain elements of society simply don’t function if left to the self-interest of individuals or corporations, period! Time to wake up from the dream Stephen Harper and see what so many of us have know for ages, capitalism is on its way out.