I’m not too savvy on economics, but I wonder to what extent this current crisis might lead to a referendum on the past decades of deregulation, trickle-down economics, and the rise of finance capitalism?
From a policy perspective, how would a shift in the US play out on the nature of globalization? It seems like this could be a catalyst for change, depending on who wins the US election and the degree of freedom they have to act. In progressive hands, the Federal takeover of such large financial institutions and the mandate to enact reforms and take bold steps seems like an apt time to reverse many of the dominant policies that favor the interests of the richest few.
What exactly is the historical relationship between the current crisis, and the overall chronology of US economic policy since the shifts in the 1970s? Specifically, I’m wondering how directly it is tied to the end of Fordism, the generally conservative political climate since then, and the dominance of neoliberalism as the guiding economic and political ideology.
I’m currently reading former labor secretary Robert Reich’s Supercapitalism to try to get a better grasp on that history…
UPDATE: By way of Matt Yglesias, an article by Fareed Zakaria that hints atleast in part at what I was thinking.
This crisis has—dramatically, vengefully—forced the United States to confront the bad habits it has developed over the past few decades. If we can kick those habits, today’s pain will translate into gains in the long run.
And over at John Robb’s blog, doom and gloom about ‘hollow states.’ I agree with a lot of what he says, but I think his take is much more pessimistic. What of the alternative to a hollowing out, worst case scenario?