We thus stand at a crossroads for American capitalism. One path would channel popular rage into political support for some genuinely pro- market reforms, even if they do not serve the interests of large financial firms. By appealing to the best of the populist tradition, we can intro- duce limits to the power of the financial industry—or any business, for that matter — and restore those fundamental principles that give an ethical dimension to capitalism: freedom, meritocracy, a direct link between reward and effort, and a sense of responsibility that ensures that those who reap the gains also bear the losses. This would mean abandoning the notion that any firm is too big to fail, and putting rules in place that keep large financial firms from manipulating government connections to the detriment of markets. It would mean adopting a pro-market, rather than pro-business, approach to the economy.
The alternative path is to soothe the popular rage with measures like limits on executive bonuses while shoring up the position of the largest financial players, making them dependent on government and making the larger economy dependent on them. Such measures play to the crowd in the moment, but threaten the financial system and the public standing of American capitalism in the long run. They also reinforce the very practices that caused the crisis. This is the path to big-business capitalism: a path that blurs the distinction between pro-market and pro-business policies, and so imperils the unique faith the American people have long displayed in the legitimacy of democratic capitalism. Unfortunately, it looks for now like the Obama administration has chosen this latter path.
via Dynamist Blog: Don’t Let U.S. Capitalism Go the Italian Route. (All emphasis mine.)
We would be in an even bigger mess if it were not for what little regulation exists today in the US and Europe, so a relationship does need to exist, but I would draw the line at any state or government actually interfering with the markets themselves.
What would help I reckon, is better regulation in Asia now that India and China have [finally] seen the light and benefits of a capitalist world and in China’s case, opened their doors, and in India’s case, started to invest and develop their infrastructure.
Next case in point would be the African continent, but we have got to clean up China and India first, otherwise their mess will be our mess, and I don’t relish the idea of those two shi**ing all over me.
Obama’s on the case now, so I think he’ll do a not bad job of things.