I think we are seeing a typical clash of the titans. I look at societies, religions, and multinational companies, ie biological co-operative societies, as advanced life forms. When you apply darwinism to them they become a lot easier to understand. These super organisms are fighting over resources, and quite a few humans are getting hurt. When the Iron Curtain fell, a couple of things occurred some rather ironic. The first thing is the balance was lost, without the USSR as an imminant threat The US gloated in its glory. Its progeny, corporate america had "proved its righteousness", so the reins were dropped. Since a companies only objective is to give a return to share holders, using money the new blood, the relaxed legal frame work allowed a human motivation "greed" to run rampant, eventually dropping the giant of capitalism like a sack of potatoes.
The high salaries paid to corporate managers is a reflection of the cogs we each represent in these corporate machines. The nation has laws but they are bound by geographic boundaries, a corporate is not so bound. Corporatisation of health and medical is dangerous.
Afterall is it not the prime responsibility of the Government to guarantee a level of health, education, security and shelter for all its citizens, if not why have a government, instead why not subcontract out the government administration to cheaper private contractors (eg a chinese company).
Why because the shareholders of a nation are it citizens, who must be involved in its running, this is why we do not do the corporate thing in government, thats why we vote and have a democracy (Motivated by corporate lobbyists).
If we follow the purely capitalist supply vs demand model, then no bailouts should have occured. Banks would fall like a stack of cards, Massive unemployment, millions would loose their homes, the economy would have been dragged to a standstill, and you would be suseptible to foriegn investment/ownership/take over during the fire sale. However, once the dust settled the assets redistributed and the risk re-established, the re-evolved neocapitalist system would have emerged stronger, having adjusted to reduce the probability of reoccurence, infused with cheap redistribution of assets, possibly reducing the human input through introduction of intelligent non human corporate decision makers. This would have been the best out come for the Corporate organisms as the stronger is forced to devoured the incompetent but the nation is worse off. But this is what did not occur.
The National organism fought back to meet its duty of care to its citizens. By doing the bailout the the human impact has been reduced significantly. It shows the difference between a nations duty of care and a corporate duty of care, and here they were in conflict. I think it is now fairly obvious that we have two political extremes, socialism and capitalism with each equally flawed, and that the best system is in that gray area between. The pendulum had swung way too far to the right and is now in the process of a correction to the left. From an outsiders point of view a nation such as rich as the US not having a workable medical safety net seems so incredibly stupid and negligent of a Government.
Fortunately for us the US is no longer the only industrial block on the planet, continuing markets of China, India, Japan, South Korea, Taiwan have cushioned the effect here. I'm not saying Australia is perfect but this nation seems to be weathering the financial storm far better than the US or Europe. Perhaps we have some systems in place that have protected us, that others could learn from. A lot of that is due to the fact we are a low population resource rich country and have benefited as a supplier to the giant wheels of industry in China, India and Asia. However our health system has a safety net for the poor, but we also have health insurance for those who can afford it. We have a minimum wage and public holidays, compulsory employer contribution superannuation and we get on pretty well with most people.
Hopefully in the US post recession period, which I think will come sooner than later, we will have learnt from the mistakes of the past and return to a more stable outcome closer to the political center.
Most systems are flawed, its a matter of picking the least flawed.
Cheers