Saturday, December 24, 2011

The Book of Jobs: “A Banking System is Supposed to Serve Society, Not the Other Way Around”



Forget monetary policy. Re-examining the cause of the Great Depression—the revolution in agriculture that threw millions out of work—the author argues that the U.S. is now facing and must manage a similar shift in the “real” economy, from industry to service, or risk a tragic replay of 80 years ago.

by Joseph E. Stiglitz

Vanity Fair
December 23, 2011

"It has now been almost five years since the bursting of the housing bubble, and four years since the onset of the recession. There are 6.6 million fewer jobs in the United States than there were four years ago. Some 23 million Americans who would like to work full-time cannot get a job. Almost half of those who are unemployed have been unemployed long-term. Wages are falling—the real income of a typical American household is now below the level it was in 1997.

We knew the crisis was serious back in 2008. And we thought we knew who the “bad guys” were—the nation’s big banks, which through cynical lending and reckless gambling had brought the U.S. to the brink of ruin. The Bush and Obama administrations justified a bailout on the grounds that only if the banks were handed money without limit—and without conditions—could the economy recover. We did this not because we loved the banks but because (we were told) we couldn’t do without the lending that they made possible. Many, especially in the financial sector, argued that strong, resolute, and generous action to save not just the banks but the bankers, their shareholders, and their creditors would return the economy to where it had been before the crisis. In the meantime, a short-term stimulus, moderate in size, would suffice to tide the economy over until the banks could be restored to health.

The banks got their bailout. Some of the money went to bonuses. Little of it went to lending. And the economy didn’t really recover....."

2 comments:

Unknown said...

oakley, valentino shoes, ray ban, insanity workout, instyler, hollister, soccer shoes, nike air max, bottega veneta, converse, nike roshe, beats by dre, ralph lauren, nike trainers, louboutin, new balance, converse outlet, hollister, longchamp, north face outlet, soccer jerseys, birkin bag, nike air max, lululemon, asics running shoes, lancel, ghd, mcm handbags, chi flat iron, abercrombie and fitch, hollister, mont blanc, herve leger, nfl jerseys, iphone cases, reebok shoes, vans, nike huarache, baseball bats, mac cosmetics, wedding dresses, gucci, ferragamo shoes, p90x workout, vans shoes, north face outlet, timberland boots, celine handbags, babyliss, jimmy choo shoes

Unknown said...

replica watches, jordan shoes, longchamp outlet, air jordan pas cher, cheap oakley sunglasses, christian louboutin outlet, longchamp pas cher, longchamp outlet, sac longchamp, tiffany and co, ray ban sunglasses, louis vuitton, nike free, tiffany jewelry, nike air max, polo ralph lauren outlet, ray ban sunglasses, ugg boots, ray ban sunglasses, chanel handbags, louis vuitton, oakley sunglasses, louboutin outlet, louboutin, louboutin pas cher, prada handbags, prada outlet, kate spade outlet, longchamp, louis vuitton, uggs on sale, michael kors, nike outlet, louboutin shoes, nike air max, gucci outlet, nike roshe run, air max, nike free, oakley sunglasses, ugg boots, ralph lauren pas cher, replica watches, louis vuitton outlet, louis vuitton outlet, polo ralph lauren outlet, burberry, tory burch outlet