Torch, Spring/Summer 2009

4 TORCH | Spring–Summer 2009 Waking Up to an Economic Crisis A finance professor provides his perspective on how America’s changing priorities and shifting values led to today’s economic upheaval. F rom an economic perspective, the year 2008 unfolded like a bad dream. At numerous points, it seemed like circumstances could not get any worse. Then another news article would come out, and conditions deteriorated still further. As in a dream, we seemed unable to do anything to improve the situation. Bailouts and interest rate cuts didn’t help. Giants of finance and industry staggered and fell. In a bad dream, there often comes a point when we realize we are dreaming and make ourselves wake up. Unfortunately, rousing from today’s economic debacle will be very slow in coming. Americans want fast solutions to every problem. However, since our current economic situation developed over a period of years, even decades, it will not be quickly or easily resolved. A few multi- billion dollar bailouts and a massive redistribution of America’s wealth will not fix the problem. Causes of the Crisis Fortunately, America was founded on Christian principles. John Adams stated, “Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.” As a nation, we have lost our mooring. You need only pick up the paper or watch the news to know that we have, in many ways, become an amoral and irreligious people. Adams warned that our Constitution is “wholly inadequate” to govern such a people. Prior to the 20th century, Americans were, for the most part, very unlike what we see today. Citizens believed in working hard and didn’t feel as though by Dr. Bill Ragle SETHWENIG/ AP