Sunday, April 26, 2009

GE's CEO says Crisis is Reseting Capitalism

Speaking at the GE annual meeting, CEO Jeff Immelt said the downturn has fundamentally reset the way companies do business and capitalism itself. What? Would one of these supposed icons of capitalism grow a pair and stand up to the demogogues?

Is our current economic crisis the result of capitalism?

Capitalism is an economic system in which wealth, and the means of producing wealth, are privately owned. What does the type of economic system operate under have to do with over-consumption? It doesn't unless those in favor of solving the current economic problems are really wanting to limit our freedoms of choice.

The current situation is very similar to the other recessions. We, as consumers, have over-consumed. We have financed, re-financed our homes in order to keep up with the Jones'. Did your neighbor hold a gun to your head and make you buy that boat, flat screen, send your kids to be best private schools, etc? No. It all comes down to self-control, personal integrity, personal responsibility and delaying gratification of wants.

What is different about this recession is the depth of the recession. In reality, says, the depth of this recession demonstrates that we artificially grew too big during the last expansion.

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