Why A Recession Could Be a Good Thing
Monday, January 28th, 2008Amanda Marcott has a great little post at Pandagon regarding the looming economic downturn. She makes a solid point that I had yet to consider:
I hear that our economy is on a downturn and the government is going to give us money to make it right. What I say is that the economy has been on a downturn, and it wasn’t until the very wealthy saw their extreme wealth threatened that we saw any action on it.
The irony is this: The fix for our problems is actually pretty simple. Capitalism per se is not the problem. In its place, it’s a good thing. But we need the basics to be made into public property—access to nutritious food, housing, health care, day care—and we need to get our capitalist system out of short-term thinking. We need to make it unreasonable and unprofitable to gamble on third world debt and the way it can be used to manipulate foreign currency. We need to make capitalism capitalistic again, i.e. return the risk to it, instead of offering huge government bailouts to save its failures. And we need high marginal tax rates to encourage capitalists to make long term investments instead of the short term investments that rule our culture.
While I disagree that Capitalism isn’t the problem (as someone in the comments at Pandagon pointed out, forcing working class and lower middle class people into subsistence living with no social safety net is a feature of Capitalism, not a bug) I do agree that the Economic Downturn* has been underway for a while and it’s only now that we’re hearing about it because it’s suddenly affecting the wealthy, who thought that their wildly inflated housing prices would somehow insulate them form the cruel realities of Alan Greenspan’s Invisible Hand job.



