Wikipedia: Moral Hazard
In economics, moral hazard occurs when an individual has an incentive to increase their exposure to risk because they do not bear the full costs of
that risk. For example, when a person is insured, they may take on higher risk knowing that their insurance will pay the associated costs. A moral
hazard may occur where the actions of the risk-taking party change to the detriment of the cost-bearing party after a financial transaction has taken
place.
This is literally what is happening right now on a global scale, but nowhere more fervently than in the United States. Not that this is entirely new
by any means -- the trend has been accelerating for decades (e.g., corporate welfare, bureaucratic parasitism and pork barrel politics) -- but rather
that the transformation is now effectively complete.
With trillions of dollars being "printed" without practical limit or the barest pretext of legitimacy, bailout money being wantonly shoveled into
the pockets of whoever can snatch it up the fastest (i.e., those with the best lawyers, the best lobbyists and the deepest pockets), the Federal
Reserve buying junk bonds almost certain to default, the U.S. Treasury absorbing major business losses while small businesses vanish en masse,
Depression-era unemployment rates sweeping the nation while workers are paid (inadequately) not to work and subject to arrest for leaving their homes,
there is no sector of society untouched.
Though the American response is the most extensive so far, it serves as a model for similar measures already underway around the world.
There has never been a time in the entirety of recorded history where moral hazard has so thoroughly permeated every aspect of any society on the
planet, let alone most or all of them. Even the most repressive, totalitarian command economies or despotic feudal regimes have been subject to
greater degrees of accountability than the U.S. government is today.
Because of America's unique economic, political and military status, any risks America takes are risks the rest of the world must involuntarily take
along with it. Thanks to the ubiquity of its reserve currency, dollar diplomacy and globally commoditized debt, if America fails, the entire world
will be left holding the bag, and it is a very, very heavy bag.
So on behalf not only of itself, but the world as a whole, America is vigorously blazing a trail into unknown territory. Being unknown territory, we
can't be entirely sure where we are heading, but all signs point to "hell in a handbasket".
Fortunately we can all rest easy, secure in the knowledge that whatever mistakes we may make, whatever disasters may result, someone else will have to
pay for them.
Let this be the courage for which America is remembered.