This fall, as we head toward the national election, we Americans will argue two main issues – the war in Iraq and the economy. Looming even larger than the war is the threat of economic recession and what effect it will have on our pocketbooks and our psyche. The debate will center on what role our government should play in these uncertain times. Should our government institute controls and regulations to prevent unscrupulous business practices from wiping out our retirements and savings? Should the government step in and prevent these large conglomerates from going under even though they made unsound investment choices?
Or should we allow those who made unwise choices to pay the penalty for their actions and go into receivership or bankruptcy? If I as an individual buy a house whose payment I cannot afford, isn’t the end result usually that I lose my home? Isn’t that a right and proper consequence of my stupidity?
On the other hand if we allow these big businesses to go under it will affect millions of people, most of whom had nothing to do with the decisions of the company. If you own stock in a company that one day sells for $170 a share and now it is selling for $2, you have lost real money. Your retirement is wiped out.
So, I ask again. What is the proper role of government in this arena? Do we want more government oversight or do we let these corporations deal with the consequences of their actions even if it means loss of jobs and money?
Let me hear from you.
