notes dec 5
December 6, 2008 § Leave a comment
SSC Map for financial notes
December 5, 2008, 2:41 PM
A Readers’ Drawing Board of Governors
The Obama administration is going to be rebuilding and reconstructing five major sectors of the American t. It has no choice–there is no other option. It has to remake:
- Housing finance
- High finance
- And the big one—health care
On what principles and through what procedures is this extraordinary exercise in structural economic reform policy going to be accomplished? I get how to do the macroeconomics of Obama administration economic policy. I don’t get how to do the structural side…
Pasted from <http://delong.typepad.com/>
think the simple answer is we can’t do all of them. We will probably not do triage, ie. just pick a couple and do them well, we will likely do half-assed jobs on each one of them. Then suffer the consequences down the road. Of course if the country listened to Cristofay, and drastically cut defense/security/intelligence we might have enough resources to do three-quarter-assed jobs instead of half. But, I don’t think the people are ready to give up dreams of global military domination just yet.
Why is it so difficult to create a "Wall of Shame" with video clips of all those (rich) pundits who entirely misrepresented the state of our economy (I clearly remember W pushing home ownership… Kudlow must have hours and hours of pro-mortgage commentary).
BTW, how is it that so many Republicans come to be advocates for the extremely rich (top 1%)? How were these public servants and journalists convinced to advocate ridiculous tax cuts for the extremely rich? There’s a great tawdry tale here waiting for a skilled scribe to send it to the stratosphere.
It seems to me that the problem with all of these problems is the idea that we can solve them in short order. The very presumption that what’s wrong with America – the accumulation of long term dysfunctions that brought us to crisis, can be undone and set right is incompatible with the very concept of ‘sustainability’.
The big one you are missing is education. Massive public financing to improve skills and access to education. The big mistake over the last ten years was to have people spend billions of dollars in loans rather than in college degrees. One reason that people go into high paying careers is that you are forced to be a doctor or lawyer after going to college. You go bankrupt if you go to college and then become a fireman, a social worker, or for that matter an astrophysicist.
high finance: The model for this is public utilities. Regulate them to keep capital flowing in the same way that telephone companies and electric companies are regulated to keep power flowing. Another thing is transparency, reduce the culture of secrecy and encourage banks to be more open about what they are doing and how they are doing it.
The basic principle is to think about "Joe the plumber" (i.e. the real ones not the McCain faux plumber). Go through the day in the life of various people and think about ways that the government can make their life better. The basic principle is one of "enpowerment". What do you need so that you can do what you want to do?
Health and education is a good start, since without health and education, you can’t do very much at all.
the truth of the matter is, you hominids can’t know what will work. OK, you know how to run a state health-care service, and a state bank. The rest is all changing very rapidly. It’s time to start Al Gore’s Manhattan Project for alternative energy. The new urban designs, architecture, transit systems, and, of course, energy systems will all come out of that work. Meantime, prop up what you can, but don’t get too attached to it; a lot of it is not going to last.
Well, what did you expect from a raven?