Zero Value

All these problems that we are facing right now can be blamed on many things. In fact, everyone has his own version of the root of the problems. I tend to agree with what Oskari Juurikkala says in a commentary, though. According to him, free markets and rampant capitalism are not the real cause of the global economic crisis. Instead, he asserts:

There are at least three distinct but related reasons for the crisis: the culture of greed and consumerism, irresponsible monetary policy, and misregulated financial derivatives. Are they rooted in free-market principles? Let’s see.

A central function of law is to educate citizens in virtue. Not all vices should be prohibited, and as in the education of children, the right mixture of rules and sanctions depends on the moral qualities of the people. In Wall Street, the culture of greed and the presence of strong financial incentives to engage in dubious practices should be countered by stronger sanctions. The failure of existing codes to prohibit and punish blatant acts of injustice has been fostering a law of the jungle.

Various reforms are needed, but they do not consist in heavier taxes and more industry regulation. Big government will only make it more difficult for economies to adapt to the crisis situation. We must tackle the problem at its roots by defending basic principles of justice and honesty.

Though I would have to say that capitalism does have its role in what is going on, it is not inherently evil and should not be blamed solely. The commentary is right – our core values and principles have to change. Otherwise, the problem will never really be solved.

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