Sunday, December 14, 2008

Economic Natural Selection

Natural Selection is a name most often associated with laws of nature regarding animal species. It's simple: nature selects species for survival or extinction. The most common example of this can be seen during the mating seasons of wild animals. Males clash and fight, or perhaps scheme, for the privilege of mating with the females. The result is that only the strongest pass on their DNA. This helps to assure the survival of the species. (This would be considered barbaric in humans, the only species in which substandard examples are permitted to procreate. I'm sure the explanation for liberalism lies somewhere in there.)
Natural selection is also an important element in Free Market economics. Businesses and individuals that don't successfully supply a demand will not last. Businesses and industries that learn to adapt to changing times will survive. Those that can't, or won't, adapt become extinct. This is a basis for what has been the strongest, best, most industrious economy in world history.
It is a fundamental that is now being disrupted. American citizens, willing or not, have leaped into the role of propping up otherwise failing enterprises. (Led by those that maybe shouldn't have been allowed to breed. See above.)
Supporting mediocrity can only lead to more mediocrity. Allowing the government to become a fail safe will certainly inspire carelessness and will have long lasting unintended consequences.
In the immediate wake of the bail out of financial institutions, we now find ourselves propping up the Big 3 auto manufacturers and leaving their more successful competitors to fend for themselves. Still others, including the state of California, are lining up with their own hands out. Who is next? Where do we go from here? How long until voters decide to elect leaders based on their willingness to hand out the cash? Will these sorts of bailouts become the next generation of entitlements?
Our children and grandchildren deserve better.

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