The real tragedy of the poor is the poverty of their aspirations.
– Adam Smith
Though the father of political economics, we forget that Adam Smith was also a moralist who often pointed out some of the more venal aspects of our society, cautioning us on the corruption of economic exploitation. Has our economy, our society, become insignificant from the mismanagement of our resources and lack of production, leaving us with little aspiration? There seems to be a malaise in our society, stemming from the manipulation into the modern consumerist society, which undermines our ability to look forward and be creative in our solutions.
Historically, this was the strength of the English-speaking world, which, because of its economic disadvantages and hurdles, became innovative, leading itself to the industrial revolution. This had its downside, leading to colonization, with the needs of obtaining resources and developing stable markets, and the modern class-system, but it is also what propelled it forward in that period of history. Are there lessons that we might learn from this?
The markets and ideals of this timeframe were truly laissez-faire, with small, entrepreneurial ventures leading to innovation and growth, either built around new ideas or efficiencies for production. The heart and soul of this economy was small and medium businesses. Sadly, and Smith did caution against this, collusion and conspiracy of business interests were also evident, which led to the corruption of this ideal through the “Robber Barons.” They manipulated the system, and its most perverse time was the creation of monopolies, which destroyed the entrepreneurialism that made our economy and society strong and robust.
Has this happened again, with the complicity of our governments, through the manipulation of regulations and trade deals? Though the engine of our economy is still found within small and medium enterprises, large corporations, most of which are not Canadian, have control over the economic playing field. They now have an inordinate amount of influence over our governments, setting the standards that hamstring our economic growth and development.
What is truly sad is that the consumer, led to believe that they are being good citizens through their consumption, has become unwittingly complicit in this economic disaster in the making. Inferior goods and services have become the norm, many coming from foreign markets, as we have become conditioned to accept “good enough.” Mediocrity, quantity and lower prices have surpassed the ideal of quality, as we no longer know what that entails. Choice, the hallmark of liberalism, is now but an illusion.
Can we reverse the trend? Can consumers change their habits, demanding better, or have we been led too far down the garden path to turn back now? The current downturn in the economy offers us an opportunity to make a change. Exports and imports are down in this last economic quarter, which offers some chance that consumers are looking closer to home for their purchases. And the more local our dollars stay, the more we can invest in ourselves, building a healthy economy, with aspiration.
John Kennair is an international consultant and doctor of laws who lives in St. Albert.
