Wednesday, October 22, 2008

World Politics vs. Gut Feeling

Is the current financial crisis a security threat?
I feel like I am forced by our class discussions to argue yes to this question. Security is an issue which can be linked, often tenuously so, but linked nonetheless to any and every aspect (even plumbing) of a nation. When one element or aspect of a nation is insecure, the entire can be considered threatened. I am taking this realist view because I feel that in matters of security, realism is the ideology that prevails.
The current financial crisis has caused great instability in our economy. From the stock markets crashing to the failure of most our major financial institutions and of course let’s not forget the subprime mortgage crisis ,“the current financial crisis” is happening on a scale that perhaps only our grandparents could comprehend. The public panic has only recently begun to subside. The rest of the world is reeling as well from this financial crisis and its consequences. The global economic system has been twisted to its knees, weakened and left in a fragile state for now. We can only wait and see whether the bailout plan will live up to its promises. While we wait we can reassess the damage that this crisis has inflicted, particularly in regards to our security.
Stability and a secure position in the international order are essential to pursuing realist security goals. The security threat in this crisis is not of course that we are being territorially threatened, but rather that our hegemonic status/identity has been weakened. The United States, the bastion of free trade and capitalism has just allowed its government a most heavy-handed market intervention. We are now up to our eyeballs in more debt than ever and the creditors who are staking us are foreign countries. For our security and national integrity this is an uncomfortable and dangerous position to be in. “On a lighter note”, many other countries are currently struggling with their own version of the financial crisis.
The above is my obligatory World Politics based answer. In brief though I would like to state that I actually feel that the financial crisis in not a security threat. I do believe the national government might view this crisis as threatening, but threatening to the current government’s security and not to our nation as a whole. Yes this crisis has caused instability in our nation, but it has not caused insecurity. We as a nation are not going to be brought down by financial insecurity (I realize this point is arguable). From an economics standpoint this is not another Great Depression, the statistics don’t match up and the differences in the financial worlds of each crisis are too different. My gut reaction to this question was no and I want to be honest about that, whether my logic, well-reasoned or not holds up I leave for you guys.

No comments: