I was a kid when “The Ronald” was first elected president, but I remember being very disappointed to have lost Carter, that kind, wise man, in favor of some pimped up rodeo clown. “Voodoo economics” was how the first George Bush characterized Reagan’s “Trickle-Down” economic theory during the primaries. I remember being distressed at the federal discussions of deregulation, thinking that the nation needed someone at the tiller.
Bubble, bust, and bailout. Except for brief periods of economic expansion, that’s been the economic history of the US. Robert Kuttner says that he’s found many parallels between the recent ’subprime’ disaster and the ‘29-’30 crash and depression. [The link is to an illuminating speech he gave on the subject to the House Financial Services Committee.] He’s also found a solution to the “bubble & bust” cycle that’s not “bailout” and it’s not bankruptcy.
Like the monster rising from its grave, even a passive conversational appearance makes grown men shudder and women shriek in terror — it’s… federal regulation. Seriously, “regulation” is a bad word in politics, as out of fashion as “liberal”. However, Kuttner makes a case that regulation can actually prevent the bubble-bust cycle. He found that many of the prime causes of the “subprime” fiasco were based on financial hooliganism that would not have been allowed before the (Depression-era) laws enforcing regulation were allowed to expire in ‘99.
This ought to inspire in me another rant about how everybody needs to be more participatory in state and national government, but you already know what I’m going to say, so just imagine that it’s a terribly rousing speech. Thankyouverymuch.
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