We live in uncertain, turbulent times. Increasingly, one question–previously unheard of–has taken on a kind of clarion tenor: Over the past several years, is it possible that the United States has been laying the foundation for its own demise? A subprime mortgage crisis, corruption on Wall Street, an unprecedented credit crisis, trading in securitized derivatives, a trillion dollar bailout for failed corporations and banks–the litany of events strongly resemble a perverse kind of downward spiral for a country that only a year ago was seen in terms of an all-powerful unipolar empire, standing watch over a “new world order.”
Indeed, the developments of the past year are difficult for even experts to fully comprehend. In real terms, the scale of our problems is historically unprecedented–even when compared to the Great Depression of the ’20s and ’30s. By any measure, we’re in the midst of a hundred year flood, and we’re all standing on our rooftops as the waters steadily rise around us.
We’ve routinely relied upon the wisdom of our Federal, state and local government officials to manage the affairs of our state at each level. That reliance, it now seems clear, has been misplaced. Perhaps unwittingly so, but assuredly nonetheless.
In the inevitable quest to make sense of it all, we may go to the Wall Street Journal, Bloomberg News, The New York Times, The Washington Post, or we may listen to the political pundits on the Sunday morning news shows. In the end, the theories of what went wrong abound–corrupt and incompetent CEOs, corrupt hedge fund managers, no-doc loans for people who could not afford them, politicians who were either over exuberant, on the take themselves, or simply asleep at the switch….
Take your pick.
The solutions for our nation’s severe economic crisis are equally divergent…and elusive. On the left, you have the Keynesians who believe that “economic stimulus” is the answer to the economy’s downturn and that low interest rates and mass bailouts are needed to stem a global panic and cascading banking failures. On the right, are the monetarists who believe stability can only be achieved through free market principles (read: freedom to fail), a strong dollar and rebuilding faith in the United States as an investment partner (I confess that I fall in on the side of the monetarists).
Admittedly, all of this is a gross oversimplification of positions, but if you can accept the charicature for just a moment, please bear with me….
The point is, economic theory leads you only so far. It’s cited ad nauseum in our political discussions, and it’s been used to generate support for economic policies that are untenable at best. In the end, though, I believe we may very well be looking in the wrong places for our solutions.
Over the years, when caught under very dark storm clouds myself, I’ve sought out the advice of a very wise man I came to know. He’s from Algeria and always available to talk. Always ready to listen. Always has the expertise (if not technically, at least philisophically). And, without fail, he brings incisive, well though-out solutions to seemingly insurmountable problems.
I recently asked him what he thought the solutions were for our current economic debacle. Here’s what he had to say in his characteristic, thick Algerian accent:
Before we can even begin to talk about solutions, you must understand the problem. How it began. And who was responsible for causing it…perpetuating it. You have a big problem in the U.S. But it’s not only yours–what started there, is now affecting many other countries around the world. For years to come, you can print money by the billions or continually press “send” on electronic deposits to bail out your banks, your credit card companies and your automakers, but it won’t solve the problems. It may postpone them for a while, but ultimately it will likely exacerbate them. As Hippocraties said, “first, do no harm.” If it’s a lifeline you want, do your first aid before you start looking for ropes. So, your second step, is to determine who caused it and what regulatory loopholes may have allowed the behavior. Make those people publicly accountable–the confession of evil works is the first beginning of good works. Punishment is justice for the unjust. I confess my own amazement, though–rather than make people accountable, you re-hire them to manage your problems, and you give them multi-million dollar bonuses! Rewarding leaders for failure represents a special kind of insanity, I think. In the absence of justice, what is sovereignty but organized robbery? You see, charity is no substitute for justice withheld. Your third step: pay down your national debt. If you want to rebuild your country, rebuild the credibility that previously existed in your institutions, and in your currency. Do you wish to rise? Begin by descending. You plan a tower that will pierce the clouds? First, lay humility as the foundation. I’ve always believed that the higher your structure to be, the deeper its foundation should be. .Fourth, don’t allow your political processes to become hijacked through unilateralism. Because one side may have a majority, doesn’t mean that you should not listen to the other. Hear the other side. Listen to your citizens. Demand accountability from your representatives at all levels. Given the severity of your economic problems, you shouldn’t expect to see dramatic improvements overnight. Patience is the companion of wisdom. Your Baby Boomer Generation is coming of retirement age. What will you do to take care of them–to keep Social Security and Medicare solvent? You are fighting two wars–one in Iraq. The other in Afghanistan. You might just check to ensure they are the right wars to fight at the right time–just wars. The purpose of all wars is peace. Your salvation from these problems can only be achieved through discipline and hard work: will is to grace as the horse is to the rider. Finally, pray. Pray as though everything depended on God. But work as though everything depended on you. Miracles are not contrary to nature, but only contrary to what we know about nature.
So, you want my advice? Here’s the best I have to give to you, your politicians, your CEOs, your bankers: If we live good lives, the times are also good. As we are, such are the times.
My friend– the wise man? St. Augustine of Hippo.
Give him a call.
BTW, the more direct quotes from Augustine (above) are in bold–with some contemporary variations.
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