Mark Thoma cites Simon Johnson. Johnson is pessimistic about the rightward trend and its economic consequences globally.
I think that as this trend develops there will be increasing pressure internationally to decouple from the United States, which is be increasingly seen as a wild card. If this is correct, there will be less and less reliance on the Unites States and therefore less and less of an impact of the US on the global economy. For example, I think that most of the world is recognizing that the American consumer cannot be counted on as the consumer of last resort anymore.
There is also being to be more interest in market socialism as an alternative to market capitalism as China assumes leadership of the global economy as the largest market. Interestingly, Adolf Lowe anticipated this in his approach to economic as engineering — figure out what kind of a society the people prefer and design policy and institutions to achieve it rather than leave organization to the market without direction.
The pace of change is picking up fast and only the nimble and agile will be able to keep pace or even get ahead of the curve.
Economist's View
The Decline in Legitimacy of the Federal Government
Mark Thoma | Professor of Economics, University of Oregon
1 comment:
Well, as long as the right of the rich to steal from the poor via government-backed banks remains intact, I'm sure the Devil will be pleased.
What else explains the preference for stealing over just sharing when it comes to money creation since money can be issued as shares in Equity, not just as Liabilities, much less mostly virtual ones such as the banks create?
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