Tuesday, September 16, 2008

The economy and the government

Winston Churchill once said, "It has been said that democracy is the worst form of government except all the others that have been tried." However, not all forms of democracy are the same, there are single party systems and multiparty systems, there are federal systems and parliamentary systems. In some ways capitalism would seem to follow the same pattern as Winston Churchill's statement as well.
Our own government is a two party democracy, and it as proved more enduring than many other democracies. This does not mean it is the best type of democracy. For example, a parliamentary democracy allows for the removal of a chief executive where our own only allows for removal when that executive has committed "High Crimes and Misdemeanors. In a parliamentary democracy, there would be a process to remove under-performing or unpopular presidents. The executive branch has become too strong it needs to be made more accountable to the legislature and the people. Another potential danger is the possible weakness of the supreme court, there are many who denounce "Judaical Activism," including some judges. They seem to have forgotten that the Judiciary are one of the three coequal branches of government, and that its duties are to interpret the constitution. One final issue rests with the legislature. It is very rare for an incumbent of either party, anywhere in the nation to lose an election, something which seems to be in stark contrast to congress's terrible approval rating. The fact that the boundaries are drawn by the party in control of each state leads to protection of incumbencies, districts with bizarre boundaries. Perhaps a neutral unaffiliated group would be better suited to this task.
Our American system of capitalism is one of many that falls in between pure capitalism and socialism. The problems of pure capitalism are many, as the competition some theorists rely on some times fails to materialize. A key example of this took place in America in the late 18th century, when beginning with the rail roads, and spreading across American industries, huge monopolies and trust formed. It took a step away from pure capitalism, to government intervention under presidents Roosevelt, Taft and Wilson to fix the trusts many problems. Furthermore, the greatest economic crisis in American, if not world history, The Great Depression was solved not by the free market, but by the massive government interventions of the new deal. However, the other side of the coin, communism, has its own more numerous problems. The Soviet Union had huge economic problems throughout its history, chiefly due to the problems underlying it entire economic system, especially the lack of motivation for individuals. Our current system, may have swung too far towards pure capitalism. Our current president, and the last two chairs of the Federal reserve, have been of the laissez-faire school, This decrease in regulation has arguably worsened or even led to the current economic crisis.
While our government and economic system may be better than many alternatives, they are not the best out there. Alterations, in some areas more than others, are necessary to improve the functioning of our government and economy.