The Dread of Thirst

One of my favorite quotes of all time. "The dread of thirst when your well is full is the thirst that is unquenchable." from "The Prophet" by Kahlil Gibran.

This is a great analogy for our current economic crisis. Fear of loss dominates the market right now, and caused the bank-runs and near collapse of AIG that we have witnessed. And that fear will consume the trust that keeps the market afloat until it is addressed. The ironic thing is, people with stocks are generally well-off. They have the material comforts they need, but it is still not enough, they still thirst for more. This thirst causes them to, as a group, act in ways that will cause pain , alienation, and mistrust which inherently dirupt human social interactions, including the market.

It is not only the unquenchable thirst that capitalism creates, but the inequity which it distributes wealth that has caused this economic trouble. As the average person finds it harder and harder to purchase their necessities, there will be less spending and fewer people spending. And that will hurt the economy. Let me put it another way, concentrating wealth in the hands of fewer people will decrease economic prosperity.

The foundation of the global economy rest on the necessities. Food, clothing, shelter, and each other. The more people who can have all of these, the higher the GDP. When more people do not have these fundamentals, fear begins to infect society. The thirst for more starts triggering the fear of less, and in our society, this seems to cause people to act selfishly. It is the selfish impulse to limit one's losses that has caused these banks to fail. I believe, that if enough people decided to have confidence in an organization, it would not fall apart. Belief in a social system is what keeps in afloat, whatever the system. It is a self-fulfilling prophecy. If people believe something stable, then it continues to survive even if it is inherently unstable. And so if dread of want, loss and, yes, thirst begin to prevail the social system becomes unstable because people have lost faith in it.

Bucky said something like this the other day, "For all the fancy math that economists do, it is amazing how much emotions and belief factor into how the economy is doing."

For our own sakes, I want us to stop dreading thirst.