July 29, 2010

THE IMPORTANCE OF APEX PREDATORS: What would happen if sharks disappeared?

UPDATE: Reader Rosie Moore writes:

I couldn’t help thinking, while watching the clip, of an analogy with the “economic ecosystem”. Many of the statements made about overfishing of sharks can be applied to the Fed’s punitive actions on the “predators” of the economy. Call the “makers” (entrepreneurs, venture capitalists, etc.) the “predators” and call the “takers” (those on gov’t entitlement programs) the “prey”. This Fed passes measures that discourage the “makers” from doing what they do well (for which, yes, they are sometimes paid obscenely) – invent new technology or drugs, create wealth (in the form of shareholder value), add jobs, supply competitors with incentive to be stronger, etc. – in the form of “sunsetting tax cuts”, handcuffs of new health care legislation, higher costs of securities and regulatory compliance, etc. So the “predators” are getting overfished – and we won’t know the final effect on the total “economic ecosystem” for a while, but you can bet it will strengthen the meek, the bunnies and deer, and be bad for the overall functioning of our free market system.

And to close the loop with the link – it will cost us plenty of clams!

I’m pretty sure the predator/prey relationship goes the other way . . . .