Our Spoiled-Brat Economy

f418a7472f5783aa8fcf04d0d72e443140b9e2325a6cf04371d142e41c4827e0

By Charles Hugh Smith

Source: Of Two Minds

By insuring spoiled brats/vested interests never face the consequences of their actions and choices, we guarantee failure of the entire system.

Spoiled brats do not take kindly to being called out as spoiled brats. Since economies are aggregates of individuals, we can anticipate howls of outraged denial at our economy being identified as spoiled rotten.

 

The two essential characteristics of spoiled brats are 1) a complete disregard for the burdens of those paying the bills and 2) a childishly self-absorbed sense of overweening entitlement. Spoiled brats have no sense of fiscal discipline. Indeed, it is their defining characteristic. They want what they want, and they want it now, regardless of the cost to others or the system as a whole.

In America’s Spoiled Brat Economy, no vested interest is ever allowed to fail. Lost billions gambling with borrowed money? Just throw a K Street temper tantrum and threaten to close all the ATMs when you go broke, and voila, Mommy and Daddy (the federal government and Federal Reserve) come rushing with trillions of dollars to make all the bad things like well-deserved bankruptcy go away.

That tens of millions of savers must be robbed of hundreds of billions of dollars in lost interest to rebuild your banks’ profits and balance sheets–the sacrifices of others are of no concern to spoiled brats.

What does not allowed to fail bring to mind? How about coddled children who are crippled by helicopter parents who do their homework for them and schools that give everybody passing grades and gold stars?

A system that doesn’t allow individuals and enterprises to fail is a system that is simply taking another path to failure. Students who are given gold stars and 9th place ribbons (Meet the Fockers) cannot possibly establish a real sense of accomplishment or learn how to make a realistic assessment of their deficiencies or strengths. They are crippled by all the “help” enablers press on them.

The same is true of spoiled-brat economies. Enterprises that are never allowed to fail (for example, too big to fail banks, bankrupt cities, counties and states, defense contractors who produce failed weapons systems, healthcare organizations that cheat the government and patients, etc. etc. etc.) become deadwood that saps the vitality of the economy, dragging down the few productive sectors.

The “help” lavished on vested interests include sweetheart contracts, direct subsidies, tax credits, lines of credit, zero interest rates and a vast range of other subsidies. The entire point of the vast lobbying machine that funnels federal and Federal Reserve largesse to vested interests is about staving off the very failure that keeps economies from imploding (creative destruction).

The Yellowstone Analogy and The Crisis of Neoliberal Capitalism (May 18, 2009)

Innovation, Risk and the Forest Fire Analogy (July 2, 2010)

By insuring spoiled brats/vested interests never face the consequences of their actions, choices and self-absorbed greed, we guarantee failure of the entire system. So by all means, keep passing out subsidies to too big to fail banks and 9th-place ribbons, and give the brats whatever they want as soon as they start wailing, regardless of the cost to the system itself.

 

Advertisements
This entry was posted in Corporate Crime, culture, Economics, Financial Crisis, History, Recession, Social Control, society, State Crime and tagged , , , , , , . Bookmark the permalink.

2 Responses to Our Spoiled-Brat Economy

  1. sojourner says:

    Reblogged this on An Outsider's Sojourn II and commented:

    A “spoiled-brat economy” for a nation of “exceptional” spoiled-brats!

  2. sojourner says:

    Excellent post!

    And yet, it is the very people, the disenfranchised many, who suffer at the hands of the spoiled brats. Those who have been reaped and pillaged most by the spoiled brats are the ones treated as though they are the spoiled brats, and simply because they have to turn to welfare, disability and food stamps in order to provide for themselves and families, to survive.

    This is why I become so enraged when the enablers refer to social security and welfare programs as “entitlements” for “irresponsible” and “lazy” people. We the individuals paid into social security, and yet when we go to collect, we are treated as if we are being given a handout.

    Have the banks/Wall Street paid into the system, including taxes? No, not at all!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s