A letter to Mr. Ron Paul

Dear Mr. Paul

First, please pardon my bad English. Over here in Switzerland, the linguistic paralysis by all the language traditions still prevented us from focusing on the new general language of conduct.
I just wanted to congratulate you to your consistent and logical stance on the bailout policies that have been and probably still are up to debate.
I must say that I'm actually very skeptical towards Anglo-Saxon neoliberalism as I see too many flaws in it which will occur along the same opportunistic and unreasonable motives of each individuum as in socialism in the Sowjetunion.
To be honest, I think both systems would work if people simply would trust and stick to its principles. And you seem to stick to the neoliberal ones that it could work for real. But the bailout plan unconsciously underwent those principles and doesn't only confirm misdeveloped market rules and practices, but eventually harms to all the people of America and around the world in the course.
To prevent or at least slow down this from happening, I would like to contribute to your body of arguments with my little allegory on Uncle Sam and his sons.
I'd feel pleased and honoured if you could take the time to read this little comment:

The parents' dilemma with adult but immature children
The current indications of an upcoming (Europe and Asia) or already existent (US) financial crisis have made media going into luring, politicians debating fiercely and the people’s feelings running high.
"The financial crisis is an economic crisis. Bankruptcy will end up in economic stagnation or depression. To prevent the people’s welfare, one thus must support the banks." - That’s the common logic in Washington these days as well as probably in other countries’ politics – and it’s completely wrong. Let me refer to Ron Paul’s opinion which clearly states that the market has to be up to that task. “Bad apples” have to be sorted out by market forces. What Mr. Paul should point out more in his argumentation is the clear reference to the very principles of neoliberalism, the prevalent if not only economic theory in the USA: The state has ceded most of his competences to market systems.
It’s like father state has handed over business to his many sons and asked them to keep it sorted in good faith. But looks like the children of Uncle Sam have turned into irresponsible, short-term determined, egocentric snobs as they were raised in an antiauthoric way. American business has proven its inability for sustainability – as probably the whole (liberal) business world in general. However, Uncle Sam has retired and simply can’t step in with the parental care for his children. He simply lacks the authority and the resources. Where does the already heavily indebted American state get those funds from? By making even more debts. And who will have to pay it off? The tax-payers. But with what funds? From the tax cuts in former years? Where are those? They’re definitely not in the mother countries anymore but have been moved them off to tax havens. The privileged and unbound children have shipped them off to the Bahamas, Switzerland and Singapore as they moved out from their parental house with all liberties and opportunities of a deregulated economic system.
Thus, the very irony of this whole rescue mission by American politicians is that any intrusion by the state will harm to the market forces and increase the gap between profiteers and sufferers even more. The market called for rebalance, but Uncle Sam steps in to save all his sons.
Now of course, that’s very ethical from a father figure. But neoliberalism despises and thwarted exactly that concept of ethics. What’s ethics anyway? It’s not only about moral or other normative concepts. In fact, it’s a rational-scientific approach to reveal the causal relations behind difficult and pretty attitude- and valued-determined views on basic systems. Simply put: Everything goes and everything can be right or wrong. It only depends on what you and others believe in. If you can agree to a system and its catalogue of principles and everyone sticks to it, things stay smooth. Now neoliberalism and its belief in market powers is such a belief. But the recent financial crisis has severely harmed its credibility.
What’s to be done? If Uncle Sam wants to save all his sons and pick them up from the gutters, he has to call them back into the parental house, make them get good jobs and pay off the help. Practically, the American state shan’t give any financial support without huge concessions – on business practices, manager compensation, audit system, etc. – in short, by regulating again. You can’t and don’t have to, shouldn’t even cede your own powers and try to help afterwards without getting anything in turn. What’s happening now in America is giving those irresponsible managers the jester’s license and that will definitely cave out the market system even more.
As one thing is for sure: If Uncle Sam doesn’t pay back the new debts, the irresponsible sons will inherit them. But they will have already rescued themselves to their tropical and mountainous havens and make Sam’s daughters and grandchildren pay the debts.

I hope you enjoyed this my little comment on your argument and remain

Sincerely,
Karakasa