The Evolution of Policy

America is the free market's greatest advocate. More than any other country, our perspective on progress is shaped by the notion that the free market is the catalyst for innovation and leadership. We have had, for the past 30 years, hurled ourselves headlong towards the dream of a perfectly self-regulating, well-balanced exchange of ideas and capital, with a legion of policymakers driving us forward whenever we lagged.

The problem is that as all of this was being done, corporations that should have either folded or adapted to the demands of the market were propped up by those same policymakers, whose constituents would have been dramatically affected by the layoffs and shakeups that would have undoubtedly ensued.

My finger is specifically pointed at the automotive and energy corporations. Detroit automakers have made an art out of subsuming innovative corporations via buyouts and proxy takeovers, and then completely dismantling any semblance of innovation within their structure. Economies of scale can sometimes be efficient, but they can occasionally be wasteful. And yet, every time the automakers find themselves on the brink of collapse, lawmakers step in to save the day, ensuring that outdated technology and production methods continue to live on in an agonizing, feeble death spiral.

Likewise, the energy sector continues to draw in obscene amounts of profit, in spite of the recent downturn in oil prices. Dividends have not been substantially raised, and share buybacks have been modest. If they had pressure on them, the Chevron/Exxons/Shells/BPs of the world all have the intellectual capital, technology, and financial backing to develop feasible alternatives to the wasteful practices our economy depends on. That pressure has to begin at a grassroots level, unfortunately, where there is a significant amount of resistance to what can be perceived as anti-corporate green agendas. Having just watched to pointed documentaries on the failures of corporate America and the capitalist agenda, I can sympathize with the greenies. Nevertheless, the corporate structure is unparalleled with its ability to make actual accomplishments when those accomplishments are sufficiently incentivized. Our lawmakers just need to start behaving like public officials, for the good of the country. But I'm not holding my breath, and neither should you.

However, within recent weeks I believe that our government has taken steps in the right direction. The tepid actions of the Treasury and Fed, who are clearly making up each move as they go along, suggests disorganization. That, however, is the nature of evolution. Where scientists once believed that life evolved at a slow and steady rate, they now that acknowledge massive waves of biological change are largely responsible for creating the diversity of life we have around us now. The history of human society is not terribly different from this scenario. Revolutions occur in rapid bursts, and societies can be changed overnight. Likewise, the rapid evolution of the policies that our financial ministers have suggested adopting indicates that a revolution of another sort is currently taking place. The government has taken a startingly activist position over the past two weeks, and signs point to it becoming even moreso. This only bolsters my thesis that the best the government, given its current authority, can do to support the free market is to become a player in the free market.