Op-Ed Columnist - An Economy of Faith and Trust - NYTimes.com
As clever as Brooks is, he fails to mention at least two basic realities that affect how people react to choices.
One is the profound influence of our world of instant communications in which information and money move at nearly the speed of light. In this world, reflective, rational decision making is dramatically altered. Market and economic theories were predicated on slower, more contemplative mental processes. That is not today's reality.
The other key factor is greed. This human trait has always been present, of course, but it has been set loose in markets and financial systems by a not-so-slow erosion of society's morals. "Do your own thing."
His basic point, though, that the mechanistic views of politicians and political ideologies built on outmoded theory are unlikely to help much in the economic recovery. This begs the question: Do we have enough faith to borrow and spend again or are we in a long period of conserve and save? Or the more basic question may be can we realistically grow ourselves out of this recession?
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