Revenge!
We humans are capable of a very strange thing: revenge. We seek to inflict harm on others at a great cost to ourselves.
Revenge is a very peculiar behavior. Selfishness makes sense. So does altruism. But why would we choose to harm ourselves just to hurt another? Justice? Hatred? Heat-of-the-moment passion? Can there be a rational explanation?
Anthropologists think so. Revenge — or at least the threat of revenge — keeps members of society in check. Sure, both parties involved in the act of revenge will suffer, but society overall will be better for it. Evolution, the argument goes, therefore favors societies that display some tendencies for revenge.
Sticking it to Wall Street
Congress’s torpedo of the financial rescue plan was just that. Revenge. We hardworking Americans taxpayers were angry. We want those fancy suit-wearing finance types to suffer. We want them to feel the pain, even at great cost to ourselves.
Over the past week, this angry sentiment permeated through the country and landed squarely in the offices of Congress. Members of the house of representatives responded to this anger and, on Monday, killed the financial rescue plan. Alas, sweet revenge.
It worked, perhaps too well. Wall Street certainly feels the pain. The financial industry is contracting fast, and New York City alone will likely lose 60,000 financial jobs.
The cost to ourselves has been great too. The stock market reacted quickly to that news and the Dow Jones Industrial Average dropped by 778 points in the largest single-day point drop. This stock market loss is felt by millions of Americans everywhere, in their 401(k)s, pension plans, and life savings. The rescue package was slated for $700 billion; a commentator on NPR stated that $1.2 trillion worth of market equity evaporated on Monday alone. Our revenge cost a 50% premium over the Bernanke-Paulson plan. To be fair, the market has regained some of Monday’s losses, although mostly due to chatter about reviving the bailout plan.
A Second Chance
The Senate convenes tonight in an attempt to revive this $700 billion rescue bill. After seeing Monday’s stock market drop, the common consensus is that Congress will pass this bill. Nevertheless, there’s still a strong Internet effort to fight this bail-out plan.
These financial risk takers deserve to suffer. But to sentence our financial industry to death is folly. The players in the revenge plot is the people of the United States and our financial industry. Justice, anger, and heat-of-the-moment passion all come into play. I just hope that we gotten these feelings out of our system.
Unlike the anthropologist’s argument, there’s no rational explanation for revenge here. After hurting the financial industry and harming ourselves, American society is going to be no better for it.
Posted on October 1st, 2008 by Ryan
Filed under: economic theory, societal concerns | 5 Comments »




