This week, the Senate Banking Economic Policy Subcommittee convened. Morgan Harper (nepotism alert) gave a clear and succinct overview of the issues facing small banks with their consolidation negatively impacting the community.
I have seen these kinds of inquisitions before, in which the government, under the auspices of virtually unbridled freedom as the prowess of capitalism, acts dumbfounded by the behavior of dominant marketplace participants when no gameplay has been pre-established. Putting twenty-two players on a field without telling them the theory of the game of soccer in advance would yield the same. Mayhem guaranteed.
The issue with banks carving out monopolies and making it impossible for small banks to compete to serve rural areas is the same as the SIM card lock allowed by the government in the mid-90s, fundamentally preventing the freedom to make GSM mobile telephony available in most rural areas.
Our marketplace constructs fail because they do not adhere to marketplace principles and do not subjugate to a theory of humanity that serves all. Feast on the following slide demonstrating nothing really works.
My comment to Morgan Harper on the Bank Mergers and the Economic Impacts of Consolidation SD-538 inquiry follows.
The problem is that laissez-faire governance, not tied to a theory that develops strict marketplace systems lead precisely to the unfreedom you point out in every sector imaginable, not just in banking. All of our systems are broken because they do not adhere to a theory, in the words of Einstein, that determines what can be discovered. More regulation sans theory will push the abuse further downstream and can be testified about again 5 years from now. Conflict avoided by not establishing a human theory to which all marketplaces must subscribe is conflict multiplied.
Our “systems” fail for the same three reasons. One, because they are not systems, as a system would logically be defined. Two, because they fail to adhere to marketplace principles. Three, because they are not subjugated to a theory that determines what can and should be discovered. We live by the expiration of today’s problems from yesterday’s solutions.
Our government can spend many lifetimes trying to fix today’s problems from yesterday’s solutions. But the compounding problems of a country without a theory derived from nature’s first-principles, without marketplace systems embedding said theory, and without rules to enable a meritocracy for all will never end.
To prevent America from drowning in the vile maxim of unchecked freedom, our government must lift itself from the swamp of infractions and focus on establishing the theory of human gameplay that aligns with humanitarian objectives.
More rulings without a theory will soon see even more compounding, opaque, and complex infractions. Frankly, this and other hearings demonstrate government has neglected its fiduciary obligation to establish a theory that determines what can be discovered, with the renewal of humanity paying the price.