January 23, 2012

Is Risk Aversion a Sign of Decline?

...because we aren't risk averse when it comes to other things like, say, buying balloon mortgages without a downpayment. Anyway, an interesting jotting from the latest National Review:
Our defensiveness, our eagerness to protect the firms and the jobs we have now, is an inevitable reflection of our relative stability and affluence. Societies that believe that their best days are behind them are naturally risk-averse. This dread of change, most vividly illustrated in the fear and loathing of private equity, is the disease of stable societies barreling towards decline. But if America is going to have a bright economic future, we must fight against complacency and nostalgia, and eagerly embrace job destruction as job creation’s necessary twin.

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