"In 1898, long before any builder had even thought of building a ship of 45,000 
tons, a novel entitled Futility told the story of how a passenger liner of 
almost the same dimensions as the Titanic .... The name of the vessel was 
Titan." Robertson, M. 1898. Futility (London).

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Jim Devine
Sent: Sunday, June 15, 2008 11:59 AM
To: Progressive Economics
Subject: [Pen-l] Goolsbee vs. Chicago [was: Naomi Klein: Beware of 
Obama'sChicago School of Economics boys


Yes, it's good to separate the true Chicago school from Goolsbee _et
al_. To alter a cliché a little, the latter are arguing about the
number of lifeboats needed for the Titanic (capitalism) and their
exact placement on various decks, while the true Chicago types are
arguing that capitalism does not need lifeboats (government-provided
insurance). All that's needed is a clear rule about where and when to
sail: thou shalt not violate the icebergs' property rights. The
government's role is only to make sure that this rule is followed.

None of these economists question the Titanic itself, of course: the
fact that most people are in steerage while a small minority sips
champagne up above may be relevant (because it promotes disorder), but
the general idea of a hierarchy of domination is not. Of course, it is
totally unlikely that Obama will listen to any economist (or anyone)
who questions capitalism. We will always be disappointed by his
appointments. On the other hand, John McCain is more likely to appoint
someone whose actions will hurt capitalism. But it won't be because
they explicitly oppose the system but because it serves short-term
interests of particular capitalist groups (as under Bush).

Despite the Titanic/capitalism analogy, I am not saying that
capitalism is going to sink the way the Titanic did, Doug. (I don't
think it will.) When they were arguing about how many lifeboats to put
on it, no-one knew that the Titanic was going to sink.
-- 
Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
way and let people talk.) -- Karl, paraphrasing Dante.
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