More Freedom Not Less

This seems like one of those times when one needs to reflect on core principles.  There's no playbook for how to handle the financial crisis we're in.  McCain's right that the fundamentals of the economy are strong (American innovation, productivity, knowledge, skills and resources), but I've never seen this much fear and panic in the financial markets. 

My first career was as a stock broker during the 80s and early 90s so I've been a "market-watcher" for thirty years and I would have never guessed Lehman Brothers would go bankrupt.  Lehman has survived the Civil War, the Great Depression, two World Wars but couldn't survive the recent credit crunch.  Even seasoned veterans are shaking their heads.

The first step in solving any problem is to face it squarely and honestly take stock of what went wrong.  So, what went wrong?  I believe the current problem has to do with what writer & Objectivist philosopher Ayn Rand called the "mixed economy":

"The basic social principle of Objectivist ethics is that no man has the right to seek values from others by means of physical force...The only social system that bars physical force from human relationships is laissez-faire capitalism. 

Men must deal with one another as traders, giving value for value, by free mutual consent to mutual benefit. 

Capitalism is a system based on the recognition of individual rights, including property rights, in which the only function of government is to protect individual rights, i.e. to protect men from those who initiate the use of physical force."  Thus Objectivism rejects any form of collectivism, such as fascism or socialism. 

It also rejects the.."mixed economy" notion that the government should regulate the economy and redistribute wealth." 

So, contrary to the populist calls for more regulation, more government involvement, is it possible there was too much?? 

Is it possible that Fannie and Freddie are textbook evidence of why a "mixed economy" is just as bad as collective forms of government?  Maybe pushing banks to loan to people that couldn't afford a home, or verify their income, was too much regulation.

Perhaps the way forward is more freedom not less. 

Let bankers decide who to loan to.  Let oil companies drill where the oil is.  Let schools set aside time for prayer or meditation.  Let doctors practice medicine without fear of a frivolous lawsuit.  Let minorities succeed or fail because of the content of their character not the color of their skin.  Let people have health insurance and retirement accounts independent of their jobs or the government.  Let a state put a child rapist to death if they want.  Let people defend their homes with a gun if they want.  Let parents choose the best school for their children.

More freedom, not less.