In moments of distress and panic, it is tempting to succumb to ideologies that promise a single, simple solution to the mess that is the human condition. Communism was blinkered like that, but so, in its purest form, is free-market capitalism. While drilling in 5,000 feet of water, the capitalists at BP’s Deepwater Horizon rig made a considered decision to forgo some troublesome safety measures, to save time and about $10 million in costs. Why not risk a small fine when millions of gallons of oil were waiting? It must have seemed like the smart play at the time. With BP now facing losses of up to $60 billion and possible bankruptcy for losing that bet, the market will now self-correct: No oil company will repeat this kind of carelessness while drilling offshore.
Sad to say, BP will not be the only one to pay the price of this learning experience, now that tens of millions of barrels of thick crude are still gushing into the Gulf. This is the problem with Adam Smith’s “invisible hand’’: To work its corrective magic, it depends on occasional disastrous mistakes, depressions, death, and widespread suffering. Does that mean we should turn to government regulation for The Answer? Regulation, too, often falls short of the ideal. Consider the case of Bernie Madoff, who ran his monstrous Ponzi scheme for two decades, right under the noses of the SEC. Even after a whistle-blower came to the agency with proof that Madoff’s “investment fund’’ was a scam, the regulators did nothing; they were too dimwitted, and too busy looking at the porn on their computers. That leaves us, I'm afraid, back where we started: groping our way forward, with no surefire solutions to human fallability.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
'Voters know Biden and Trump all too well'Instant Opinion Opinion, comment and editorials of the day
-
Is the Gaza war tearing US university campuses apart?Today's Big Question Protests at Columbia University, other institutions, pit free speech against student safety
-
DOJ settles with Nassar victims for $138MSpeed Read The settlement includes 139 sexual abuse victims of the former USA Gymnastics doctor
-
Editor's letterfeature
-
Editor's letter: Are college athletes employees?
feature The National Labor Relations Board's decision deeming scholarship players “employees” of Northwestern University has many worrying that college sports itself will soon be history.
-
Editor's letter
feature
-
Editor's letter: When a bot takes your job
feature Now that computers can write news stories, drive cars, and play chess, we’re all in trouble.
-
Editor's letter: Electronic cocoons
feature Smartphones have their upside, but city streets are now full of people walking with their heads down.
-
Editor's letter: The real cause of income inequality
feature When management and stockholders pocket all the profits, the middle class falls further behind.
-
Editor's letter: The real reason you’re so forgetful
feature When you consider how much junk we’ve stored in our brains, it’s no surprise we can’t remember our PINs.
-
Editor's letter: Ostentatious politicians
feature The McDonnells’ indictment for corruption speaks volumes about the company elected officials now keep.