> From: Thomas Kruse <[EMAIL PROTECTED]>
> Max's drawing a line post is very timely, very to the point: we really must
> hash out what a progressive position on bailouts should be. I agree that
> these are the sorts of crises we will see more of. As evidenced by the NYT
> article attached below, the mainstream press also seems to see this as a
> serious, recurring issue. I hope other pen-lers will follow up on this.
> Some questions for Max (and others) follow.
>
> >The US labor movement is going to be told, not
> >without reason, that a collapse of Asian
> >economies will destroy US jobs, through I presume
> >reduced imports of our goods and low-ball export
> >pricing to US consumers.
>
> Are there any quantitative analyses out there on this?
Yes, some people at EPI are kicking some numbers
around. I'll post anything worth posting.
> >The question of greatest interest to me is
> >whether there is some practical way to accomplish
> >the sort of restructuring alluded to without
> >going up the blind political alley of simply
> >advocating state takeover of whatever and
> >restitution to whomever.
>
> Could you spell this out a bit?
Sure. It's not helpful in my view to respond to
this by simply calling for socialism. I think we
need ideas for arrangements that don't foresee
indefinite state control of enterprises that
clearly belong in the private sector (e.g.,
consumer electronics, apparel). At the same
time, this is an opportunity to re-socialize
firms and industries for which a public rationale
can be offered, such as utilities,
communications, some finance and insurance, etc.
One relevant discussion is how to sort out
business activities for such purposes.
>
> And a note: it seems to me that a central part of a progressive "no bailout"
> policy would be pointing to the record of how such bailouts "structurally
> adjust" millions outside the US into ever greater instability, vulnerabilty
> and lower wages. In fact, I would suggest that working out a progressive
> bailout policy would have to be a multinational activity.
Right. The proponents of bail-out have to show
that bailing out solves the problem and that
failure to bail out makes the problem much worse.
Neither is obvious to me.
MBS
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