GREENSPAN'S "MISTAKE"
The Rev. Dana Prom Smith, S.T.D., Ph.D. (10/25/08)
While listening to Alan Greenspan "admit a mistake," "an error," and "flaws in his thinking," I wondered how he could be so wrong when so much was at stake. There are three reasons. He could've been venal, fattening his pockets and those of his Wall Street cohorts, getting rich off of everyone else's misery.
He could've been stupid for assuming that an activity motivated by greed and fear could be left free to regulate itself, letting the foxes guard the hen house. A stretch in California's notorious Pelican Bay Prison could help him understand the need for regulation in a society of greed and fear. Regulation is the answer.
The third possibility is that he's naïve, like he doesn't get it. If economics is the "dismal science," that Thomas Carlyle said it was, being "dreary, desolate, and abject," Alan Greenspan is the prize specimen. Apparently, he thinks that people driven by greed and fear are trustworthy. Only a fool could think that.
Greenspan's "whole intellectual edifice collapsed" because he was wrong about human beings. He would do well to listen to Reinhold Niebuhr, the late, great American theologian who authored the famous "Serenity Prayer." Niebuhr wrote that the only Christian doctrine capable of empirical verification is original sin, by which he meant that although human beings are created inherently good, they will inevitably go wrong. Reading the morning newspaper, as Niebuhr said, proves the point.
The worst possible reading is that Greenspan, being a Republican, knew all these things and is, therefore, venal.