Where Did My Capitalism Go?

Well I’m sure that most have already heard about the new regulations over the financial system the Obama administration is proposing. Increased programs for consumer protection, more power delegated to the Federal Reserve when they’re faced with institutions deemed “too big to fail”, and increased federal oversight on certain types of products within the financial system are some of the hallmarks. Don’t mind me if I get a little philosophical here but, what is the purpose of government? Is it to protect people from themselves? To protect them from ignorance? Do we need the government to tell us what the risks are when buying stock, or how much we can truly afford when we’re considering a home mortgage?

At what point did people stop thinking for themselves, and start relying on the government for protection from their own mistakes? I can understand a government that provides services and functions to the taxpayer like interstate highways, and civic education, and even a standing military, but do we really need our government in the business of determining financial risk? I’m sure that this whole idea of government as its brother’s keeper got its start with FDR in the Great Depression (talk about seizing a great opportunity).

Think about social security and the federal deficit at the exact same time: Do you really think the US government is better at managing your money than you are? I, for one, do not, and now we see that more of the money promised to the government by the taxpayer is being spent on further public and private oversight. Still, every working American is forced to contribute a portion of their earned money to a program that protects them from an ill-prepared retirement when in its essence social security defeats the forward-thinking mind by rewarding the poor financial planning of the non-saver. The more power we vest in the government, the weaker we become.

I believe this weakness is what drove us to where our economy and understanding of governmental purpose is now. Did we expect the person selling us a house to say, “Maybe you can’t afford this…”? Did the buyer expect a federal agency to verify that each of the loans delved out to first-time buyers were appropriate for their level of income? Maybe some people were expecting that kind of protection. Either way the “security” that some seek may soon become a reality. What we’re seeing proposed is a patchwork of reactionary oversight aimed at strengthening the federal government’s role as the central network through which business transactions are processed. The role of government is shifting further away from its purest purpose as a servant of the people, and becoming more like a savior. I hope I’m not the only one that doesn’t want to be saved.