Wednesday, August 26, 2009

Needed: An Economy of the People and For the People

We Have Lacked an Economy For the People
“The design of economic policy has delegated environmental,
health, and inequality indicators to secondary roles in favor
of the monetarist goal that ties central bank conduct to the drive
for price stability. A preferred alternative is to design policy that
focuses on global public goods, nonrenewable resources, human
resource use, and the sharing of knowledge goods

Dimitri B. Papadimitriou, President Economists for Peace and
Security and the Initiative for Rethinking the Economy
August 2009

The Crisis for the "People's Economy" Continues Despite Talks of Green Shoots for Finance :
“One speaker summarized the general position as a
'Minskyan supercycle' —a crisis of underconsumption and
overproduction occasioned on one side by a vast overhang of
private debts, which households would like to get rid of but
largely cannot; and on the other by the unwillingness of governments
to allow major corporations and (especially) banks to disappear—
a step that would be necessary to adjust supply, and
therefore profitability, to demand. Not incidental to this is an
undoing of globalization, caused by the collapse of trade finance,
revealing the fragility of the previous world economic structures
and the weakness of existing economic institutions—global,
regional, and national.”
James K. Galbraith

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