I made recent mention of how big a percentage of the overall economy the financial sector has become and how it's considered quite dangerous.
This is not the uninformed rant of a pajama clad blogger, although it's true I still have my pajamas on.
There's actual data on it and the latest iteration is TPM's recommendation of economist Simon Johnson's article in The Atlantic.
Read it and weep, or don't read it and just take their word for it, which is what I plan to do because I really hate being reduced to tears.
Money quote:
Quite apart from the public policy implications, but rather in the realm of political economy, these graphs provide a revealing look at what the 2005 push to privatize Social Security was all about and what the implications of its success could have been.
Intro to
Johnson's article:
The crash has laid bare many unpleasant truths about the United States. One of the most alarming, says a former chief economist of the International Monetary Fund, is that the finance industry has effectively captured our government—a state of affairs that more typically describes emerging markets, and is at the center of many emerging-market crises. If the IMF’s staff could speak freely about the U.S., it would tell us what it tells all countries in this situation: recovery will fail unless we break the financial oligarchy that is blocking essential reform. And if we are to prevent a true depression, we’re running out of time.
No; don't just take Johnson's word for it. Read the article. We took too many peoples' "word for it" and the result is what we have today. Comeon Contrarienne, dig out Kolko's book that you read 40 years ago and you will find he said the same thing that Johnson is saying today (with more economic twists, but the same political lessons). This stuff is not rocket science or as difficult to comprehend as prison reform.
ReplyDeleteYou can do it.
Can't you just synopsize this for me? Kolko, always the Kolko. (Spits.)
ReplyDeleteCorrection:
ReplyDeleteFeh! (Spits).