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CHAPTER 6
Cui
Bono
It should be apparent that
most citizens did not really benefit from increases in money stock or from increases in
commercial real estate loans. The evidence shows that the citizen's debt load
deteriorated out of control. Government consolidated deficits, debts, and interest on
the public debt, for which the citizen has ultimate responsibility (corporations can
always relocate to a lower-tax jurisdiction), also deteriorated perniciously -- Canada
came within a fraction of a percent from disintegration. The safety net continues
to be threatened. And, if things continue as they are, Québec will separate. To
sum: it appears that the economic and social misfortunes belong to the People -- not to
"absurd and oppressive monopolies."1
Plato. More than 2347 years ago, Plato
warned this about the possession of money and goods: "Both, in excess, produce
enmity and feuds in private and public life, while a deficiency almost invariably leads to
slavery."2 By the above account, powerful
monopolies and para-governments fared well; but, as argued by Plato, the transfer of
wealth from the citizen invariably leads to an increase in the citizen's
"slavery." It is also clear that governments, and by implication the People,
have become more indentured to the Money Trust. What should the citizen do? Plato's
answer: act as master -- not as servant. In Plato's The Laws, the
ATHENIAN argued that "'true natural life' . . . is essentially nothing but a life of
conquest over others."3 What exactly can the Electorate do
to mitigate the vicissitudes of "nature" and "chance"? As the absolute master, the Electorate must choose the kind of
Legal Code that is most consistent with the People's economic priorities. Goodness is too important a matter to be left to financial experts.
Plato was vehemently
against, if not outright hostile, to usury: "There must be no lending at interest,
because it will be quite in order for the borrower to refuse absolutely to return both
interest and principal."4 For Plato, our "holiest"
and "most intimate possession" is not wealth, but our "soul."5 Plato recommended that we honor God
first, then our soul, then our body, then our wealth. Today, economic and social data seem
to indicate that our priorities have been reversed -- in the marketplace. How else can you
explain the economic origin of destruction -- bankruptcies, foreclosures, abortions,
misery for so many, even threats to break up the country -- in a land blessed with
fabulously rich natural treasures?
In his Allegory of the
Cave, Plato imagined slaves tied up in a cave. The slaves can only see "shadows
cast by the fire on to the cave wall."6 The slaves are not aware that the
shadows are those of puppets and artifacts. Their beliefs are shaped by the causality
they derive from the motions of the shadows they identify on the cave wall. They
"assign prestige and credit" on the basis of these beliefs. . .7
We can no longer escape our
responsibility. The incredible regularity of the business cycle and of its dark
side leave little room for Hayek's and Friedman's spontaneity. The marketplace is
clearly not spontaneous: it is directed by economic interests and it is
controlled through a system of biased net advantages. Like all human interests,
economic interests have good and evil dimensions. The
unité de plan of the business cycle can no longer be hidden from the People.
To do so would be "swinish stupidity."8 The business cycle is a struggle
for the good life -- a struggle between creative entrepreneurial life instincts
and destructive sadistic death instincts (rapacious greed and acquisitiveness) in
the marketplace. Its up and down sides are mere reflections of our virtues and vices.
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1
Adam Smith's expression; see Adam Smith, The Wealth of Nations (1776), edited by
Edwin Cannan, with a Preface by George J. Stigler, 1976, Vol. Two, Book IV, Chapter VIII,
at 165. 2
Plato, The Laws, translated with an Introduction by Trevor J. Saunders, 1970, at
192 (Wealth).
3 Ibid., at
415-417 (Nature and Chance Versus Design), especially 417.
4 Ibid., at
211-214 (The Possession of Money), especially 211.
5 Ibid., at
189-191 (The Importance of Honoring the Soul), 191-192 (Physical Fitness), and 192
(Wealth).
6 See Plato, Republic,
translated by Robin Waterfield, 1993, at 240-245 (The Allegory of the Cave), especially
241.
7 Ibid., at
243.
8 Plato's expression;
see Plato, The Laws, translated with an Introduction by Trevor J. Saunders, 1970,
at 313. |
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