We’re all aware by now that Wall Street firms and major banks and insurance companies have been stealing the country blind trading in abstractions built on nothing. People have finally realized the emperor has no clothes and the whole airy enterprise is collapsing like a loaf of Wonder Bread. But what I don’t think is obvious enough yet is how divorced the “economy” has become from the tangible marketplace. I read the Wall Street Journal everyday and see terms like GDP or consumer confidence bandied about as if they were actual facts, like someone’s blood sugar level. I mean what exactly is being “produced”? Can all production be quantified? Is continuous increasing production a sustainable enterprise? What are consumers confident about? You get the idea.
The tangible marketplace exists organically. People need food, clothes, and shelter. Their wants are pretty consistent, too: entertainment, artistic pleasure, socialization. They need education, child care, medical care, haircuts, plumbing repairs. They need transportation, whether via private cars, planes, trains, busses, or bicycles. The number of people in the world keeps increasing. Surely there must be valuable work for everyone to do! I’m not surprised to hear of unemployed mortgage brokers or advertising executives, but when I see teachers, nurses, and architects looking for work, something is askew with the system. When I see my three talented and capable adult children, along with many of their talented and capable friends, unemployed or woefully underemployed something’s wrong with the system. And then at the same time, classrooms overflow due to lack of teachers, patients go untreated due to lack of nurses…someone must making money here, but I bet they aren’t people providing actual goods and services. The companies traded about on the stock exchange have little to do with the actual provision of these services.
Frankly provision of actual services hasn’t been what’s valued in our society. Even the profession of medicine, every Jewish mother’s dream, has been devalued in relationship to health maintenance organization administrators and insurers who can’t so much as take a blood pressure. College professors, artists, plumbers, farmers, cooks, child care workers…everyone takes a back seat to people who trade in abstractions. Now that those abstractions are collapsing, it’s high time to connect economic exchange to tangible goods and services. If the economy is built on sturdier pillars, it won’t be nearly as vulnerable to recessions, depressions, or implosions.
How to go about this is a long and very complicated process but breaking economic units down to smaller, more localized businesse would help. It’s very hard to promote accountability in huge multinational corporations. We may not need to get rid of the stock exchange, but we could certainly regulate its actions much more closely and not insist that companies meet Street-defined “expectations”, sacrifice long value for short term gains, or for that matter, continue to grow, like cancerous cells. We could let medical professionals run medical care (see Wendy’s healthcare plan). We could promote small businesses (see Wendy’s bailout plan). As a society we could value people who create real things and care for real people. We could value beauty and craftsmanship over blind efficiency and planned obsolescence.
It might be wise if we make those choices now, in a controlled manner, before this entire puffed up enterprise completely collapses.