Written about Ireland, but more generally true.
It is remarkable how little attention is devoted to interrogating the political economy model that has led us into the present crisis; indeed, it is rare indeed to even find acknowledgement that such exists. For example, in reading the range of recent books by journalists and commentators on the present crisis, what is striking is the personalist nature of the analysis advanced. By this I mean that the many ills analysed – the poor quality of governance, the too close relationship between politicians and so-called `developers’, the failures of regulation, the growth of a banking culture that threw caution to the winds in its lending practices – are ultimately attributed to the failures of individuals. There is a deeply ad hominem quality to it all.
http://www.progressive-economy.ie/2010/01/interrogating-irish-model.html
I found this on ET http://www.eurotrib.com/story/2010/1/28/11468/2683
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(Euronews) – The World Economic Forum has begun, bringing the battle over bank regulation in the wake of the economic crisis to the Swiss ski resort of Davos. Global business leaders are warning Western governments that a crackdown on the financial industry could damage a fragile recovery.
Opening the annual meeting with a keynote speech, French President Nicolas Sarkozy begged to differ.
“This crisis is not just a global crisis.
It is not a crisis in globalisation.
This crisis is a crisis of globalisation.”
“Globalisation first took the form of globalisation of savings. It gave rise to a world in which
everything was given to financial capital and almost nothing to labour, in which the entrepreneur gave
way to the speculator, in which those who lived on unearned income left the workers far behind, in
which the use of leverage, to an unreasonably disproportionate extent, created a form of capitalism in
which taking risks with other people’s money was the norm, allowing quick and easy profits but all
too often without creating either prosperity or jobs.”
“There are excessive profits that will no longer be accepted because they are without common measure
to the capacity to create wealth and jobs.”
“If we don’t change banking rules, if we don’t change accounting rules….
it is not only a technical matter, it is not only a matter for experts…..
where do we want capitalism to go?”
Sarkozy’s plea for reform is being made to the 2,500 senior economic figures and policy makers gathered for the conference. Amid the mountain peaks, the spectre of heavy-handed government intervention is the biggest cloud on many business leaders’ horizon.
Sarkozy remark: “Unacceptable, financial institutions with large bonuses that don’t create jobs.”
Just this week BBC interview with Howard Dean: ‘Wall Street hasn’t created any jobs…’
Therefore, the Obama message will be on job creation and financial reform. Capitalism must be regulated or the excesses will doom us all.
"But I will not let myself be reduced to silence."