I'm no economist. I know little, if anything, about assets, liabilities, credit and that "invisible hand" Adam Smith described. I assume that, like me, most Americans don't have much more than a general knowledge of what makes the free market work. These people and I don't know enough to fix the economy.
I do know a few things germane to the situation, however. I know $700 billion is a lot of money. I know companies are failing at a rate that I've only seen rivaled in the dot-com bust. I know the math works out to about $3,700 for every man, woman and child in the U.S. if the bailout passes.
Most of all, I know that most Americans, like me, or at least the ones with the same grasp on the situation, had absolutely nothing to do with the economic problems we are dealing with today.
Tuesday, the Daily News editorial board told you not to worry, that everything would eventually work itself out. This is certainly true, but if the powers that be decide on the bailout plan, they might not work out the way you want. After all, what did you really have to do with the mess we're in? Can you be held responsible for all, or even a small part, of the economic crisis that's going on? Do you deserve the wrath of Uncle Sam-turned-pickpocket to the tune of four grand?
Unless a stampede of Wall Street CEOs suddenly appears on campus, I'm certain no one reading this can claim more than a small supporting role in this crisis. At most, you might have misused credit that never should have been extended to you by irresponsible lenders in the first place. In any case, there's no way to justify taking $3,700 from everyone in the U.S. to patch the economy until Smith's ghostly hand does all the work.
So what to do?
Like the editorial board said, don't panic. Don't take all your money out of the bank and put it in a shoebox. Do work just as hard as you have been to earn enough to put food on the table and a roof over your head. Do follow the news and keep up on what's unfolding. Once all that is done, it's time to put some safeguards in place.
Make sure the politicians who represent you vote for measures that hold the true offenders responsible, not you. Make it abundantly clear that you will not be paying for the mistakes of others. Most of all, plant the seeds of alternative forms of raising money and fixing the economy.
Offer up the idea that everyone, lenders and customers alike, should be enrolled in some sort of required finance course before a dime exchanges hands. Tell them that, being the overachieving Ball State student that you are, you've already signed up for just such a course. Suggest tax breaks for people who are willing to take the risk of investing in failing loans. Suggest a plan to offer discounted mortgages to government workers, whose taxes are inevitably paid on time, so that the housing market starts to rebound.
Tell them any of these things and more, but don't just sit back and watch it all unfold. Make sure they know that their votes should be focused on holding Wall Street and the people who run it accountable.
To fix the economy, it seems what's really needed is a very real, continent-sized hand powered by complex, expensive machinery to make things work until its transparent counterpart takes over. It's your responsibility to make sure you're not unnecessarily purchasing all the machinery to get the job done.
Write to Logan at lmbraman@bsu.edu
Read More
Three Air Jam teams take home the win
October 12, 2012Nineteen teams shimmied, shook and flipped for a sold out John R. Emens Auditorium on Thursday night during the 25th annual Air Jam.
Bill Clinton Speaks at North Central High School
October 12, 2012Former President's Speech Could Have Effect on State Senate Race
