There is growing realization among everyday people that global economic problems are a lot bigger than we think. A plurality of Greeks saw it, but their number was insufficient to form a cohesive government.
Americans have also seen the light, but we too are divided on what to do about it. The issues, and that which is at stake, are simply and understandably beyond our comprehension. We expect our government to solve the problems, but those we elect are no less at a loss for answers. For that they rely on the most highly regarded authorities in the field.
Today the FOMC will once again do its best to provide guidance, and it will be based on paradigms that have proven successful for nearly a century. Those paradigms, however, have been singularly ineffective in dealing with the problems we face today.
These problems cry out for entrepreneurial solution. “Success sows the seeds of its own destruction,” the adage goes. The answers lie not in what has been done before but in that which remains untried.
Prior success causes people “to assume that they are successful because they have it right; they understand the market and they know what they are doing,” say Drs. Jim and JoAnn Carland, leading authorities on entrepreneurship. “Such an attitude can cause people to sit back and enjoy their success; to become mentally lazy; to assume that the future will be a reflection of the past.”
When past truths fail us, we must find new truths. George Bernard Shaw said, “all great truths begin as blasphemies,” but we should not let that stand in our way. People are inherently uncomfortable with change and fearful of the unknown. New ideas that conflict with accepted norms frequently die because of it. However, antithetical great truths, which are by definition superior, have power and endurance; gradually they become accepted as tenets themselves.
Most likely the Fed will opt for some form of stimulus, the current favorite among analysts being an extension of Operation Twist. But these are not times for the timid. More of the same can do us no good. We would be far better served to seek a new vision. Unless we accept our failures and learn from them, there can be no progress.