The current economic crisis is tragic for many people. That doesn’t mean that we can’t be thankful for a few of the more positive effects.
Long Term Utility for the Individual
Severe economic crises tend to make people much less materialistic and wasteful. This effect is most visible in people who grew up during the depression (a demographic which sadly is in short supply these days). They tend to be thrifty and concerned with storing up essentials for the future. Of course, that effect is going to be mitigated this time around by pundits, politicians, and vendors who are imploring people to buy more. I do acknowledge that consumerism will help minimize the damage of the economic crisis - however, I think a less materialistic outlook in the western nations will do much for the edification of individuals, and will perhaps make the economy a little more crash-proof.
“This isn’t life, it’s just stuff. And it’s become more important to you than living. Well, honey, that’s just nuts.” - Lester Burnham
Just a Little Bit of Healthy Skepticism
Much of the current crisis was caused by peoples’ excessive faith in the companies they do business with. Participants in a regulated free-market often forget that all business is largely adversarial. A company negotiating with you potentially wants to make money at your expense (and well they should - it’s their job!). So, if banks believe that forcing you to foreclose on your house will net them a few extra dollars, they will try to force you to foreclose. If a local electronics store thinks that they can get you to buy a cable with a 600% markup merely because you’re already in the store, they will sell it with a 600% markup. Regardless of government regulation, healthy skepticism in the market will always be a positive thing for individuals. The government simply can’t anticipate all the ways that people will try to screw you out of your money, but a properly trained individual can often recognize it. I suspect (and hope) that many individuals who were stung by this crisis will learn to become a little suspicious of their economic adversaries.
A Man Whose Ivory Supplies are Running Low
The most fascinating aspect of the crisis for me is seeing the hypocrisy of many self proclaimed “Laissez-Faire” capitalists. This particular aspect is fun for almost everybody - economically liberal folk get a convenient punching bag (as well as a handful of genuine converts), and economically conservative folk are able to identify who among their ranks are just opportunistic fakers. Here are the two traditional kinds of economically conservative people.
A Real Laissez-Faire Capitalist suggests that a variety of forces can throw the economy out of balance. He would insist that without the intervention or regulation of government, the “invisible hand” (as described by Adam Smith) will bring the the economy back into balance - a state where the market is most mutually beneficial. Such a capitalist doesn’t expect the hand to move quickly, so economic crises must be stoically weathered - prudent capitalists will often prepare for such contingencies.
On the other hand, we have An Ordinary Greedy Individual. He merely wants to make as much money as he can all the time - these people are often arrogant and short sighted. In times of economic prosperity, they are almost indiscernible from a Real Laissez-Faire Capitalist, merely because they believe they can make the most money when Uncle Sam leaves them alone. In an economic crisis however, they will beg and plead for government bailouts, insist on state regulation, and generally make asses out of themselves - which is why this aspect of the crisis is so absolutely fun.
On a related note, I have grown mistrustful of people who benefit too much from the ideologies they espouse. Why should a cause championed by the beneficiaries of that cause hold any sway with the public? Would anybody care if a whole bunch of death-row inmates formed a “Coalition of Americans Against the Death Penalty”? But, if such a coalition was formed by the families of their murder victims, it would be far more convincing.