Sunday, December 06, 2009

Role Reversal

Who knew that the day would come when Democrats were the party of big government and big business? Despite all the branding to the opposite, Republicans have become the party of the little guy - the individual investors, the tea partiers, and the small business owners.

In fact, I would almost rather the Republicans be the party of big business, because having Democrats as the party of big government AND big business is a dangerous invitation for corruption.

In an individual business, it is important to separate responsibilities related to money. For example, one person enters checks into the register, one person signs checks, and two separate people make deposits at the bank. Thus you need the dishonesty of several people with competing interests to get robbed by your employees.

If business and government are controlled by one party, there is a big risk for collusion and corruption. I would be concerned with Republicans taking over half the economy just as I am for Democrats taking over half the economy (when you consider bailouts and healthcare and cap-and-trade).

All the current financial difficulties are a result of individual actors making dishonest or foolish choices. The famous old phrase is that society requires obedience to the unenforceable. If there is a lack of honesty, it does not matter the laws on the books, the regulations, or the enforcement in place. Nothing can keep a corrupt culture from financial ruin.