Behind the Power Curve

"Behind the power curve" is a term that originated with pilots. It represents a situation in which it it may be impossible to apply sufficient power to recover. In other words, a bad situation. Our nation may be behind the power curve with respect to the economy.

The other day I heard a piece on BBC radio (via the Ohio State University-run public radio outlet) regarding the developing financial crises in Europe. Greece, Ireland, Portugal and Spain have each had their bit of fame and it's now the turn of Italy. The commentator/reporter was quite insightful. Each of these countries has borrowed at levels that exceed their ability (in the near term) to repay. Italy is generating particular concern because it is one of the three anchors of the Euro-zone.

What struck me was a statement that Euro-zone politicians are lagging so far behind the unfolding events that they are in danger of becoming part of the problem. They have already become irrelevant but can still do harm. A particular reference to Nero fiddling while Rome burned made me think of what's happening here in the U.S.

There is a feeling today in U.S. political circles that "my" party has the answer if only we could get a majority large enough to have our way. This is perhaps the most dangerous attitude it's possible to have in government. It undermines the very objectives of government.

The purpose of government is to provide a safe and secure place for its citizens to live and work, think and learn.

The only way to achieve this purpose is to collaborate because the greatest good for the greatest number can't be defined by one person, one party or one poll. Further, asking my party colleagues or supporters what should be done produces nothing but agreement. Community is essential for us except that it can also be destructive. When you and I always agree, one of us is unnecessary. We associate only with those who agree. Then we vent our collective anger at everyone else. Often the only outcome is anger but sometimes it's more. The member of the community who takes action by terrorism is a good example.

When does a community become a mob and then a lynch mob or a terrorist organization? The answer is when it ceases to be motivated by the greatest good for the greatest number. A complicating factor is the tendency to rationalize. Rationalizing means creating reasons for doing what we want to do.

The U.S. economy is in crisis. The source of the crisis is the accumulation of debt (both public and private) in excess of our capacity to repay. For private parties the piper shows up with hand outstretched pretty quickly. If we can't pay the piper, foreclosure and/or bankruptcy results. The larger the entity, the longer it takes for the piper to show up and the more drastic the result of non-payment (also known as insolvency)--and the more people who must suffer.

No one knows how Nero rationalized his fiddling by firelight but we see every day in the news how "our representatives" in government rationalize their fiddling. The fire is lit but there may still be time to call the fire department (if they haven't all been laid off).