Financial Times columnist Martin Wolf inquires, do Americans understand their financial and economic system? Anger at Wall Street's - - and regulators' - - lapses is justified, but at the end of the day to oppose the rescue package is at once self-defeating, contradictory, self-punitive, and borders on nihilism, Wolf states. Take your pick regarding which is the most damaging.
Congressional representatives, particularly conservative Republicans, but also others, opposed the flawed rescue plan as a bailout for the rich, and as a statement against 'socialism.' Socialism? Yes, the plan is flawed, Wolf states, but the ruin that will result from rejecting the plan will destroy the legitimacy not of socialism, but of the market economy. Exactly what are the packages' opponents fighting?
The Congressmen/women also say that they are 'taking a stand for Main Street and against Wall Street.' A contradiction, Wolf writes. Wolf: Wall Street and Main Street are streets that meet. That is what streets do.
Then there is the future. What is the opponents' alternative? The loudest voice here appears to be 'let the market sort things out by itself,' under the assumption that the damage, costs, and negative consequences really won't be that bad. Wolf: This is not prudent, if the early 20th century's experiences are a guide.
Wolf's recommendation: Act. The U.S Congress should pass the rescue package. Economies are coping with the bursting of the housing and credit bubbles, and fear. The bubbles must be addressed. Equally important, confidence must be restored, for a market economy to function.
Economic Analysis: Sometimes the best analysis of the U.S. economic system originates outside the U.S. Wolf is on the mark: the rescue package must be passed. Some Congressional opponents argue that their constituents won't be hurt by the damage that would result from letting the market sort things out by itself: no research yours truly has reviewed indicates that would be the case.
Reader Comments (Page 1 of 1)
10-02-2008 @ 3:13PM
JCH said...
It's about time for cooler, less angry heads to prevail.
If you F'd up and told your representative in the House of Representatives to vote no, call him up and tell him anger switched your brain off and you've sobered up.
10-02-2008 @ 6:12PM
clikdawg said...
"The legitimacy of the market economy"? What legitimacy? What's left of that economy has been built on sand and is collapsing of its own wrong-headedness -- that's what Main Street understands perfectly, sir; that's what the furor is all about; that's why it is wisely choosing to invest no more of its tax dollars in schemes to stave off (for the benefit of those who brought it about and at the expense of everyone else) the "evil day" when reality trumps fantasy.
We know when we're being bilked, sir, and you can quote all the "authorities" you please and employ all the double-talk at your command without altering that conviction one iota.
Sheesh! Y'all just can't believe we won't stand by supportively while you give America one more long last ass-fucking, can you?
Hit the road, Jack, and don't you come back no more, no more, no more, no more ...
10-04-2008 @ 10:04PM
s softwarenerd said...
I'm tired of the media's Wall Street vs. Main Street chant. Politicians from both left and right are loving the resurgence of class-warfare rhetoric: "it's Wall Street vs. Main Street and the Knights of government will ride to the voter's rescue".
I did a whimsical illustration of this.