Last Fall, free market worshipers were dealt a devastating blow. Even Alan Greenspan admitted the free market model had failed us.
What should replace this failed model? Whatever Works, says Businessweek.
Call it industrial policy, or use the euphemism of “public-private partnership.” But as America emerges from the rubble of the credit bubble and soberly confronts the task of building a strong, sustainable economy, the new credo will likely be “whatever works.”
But “whatever works” is how we got into this mess. It’s the second-to-last step in a dysfunctional dance that goes something like this:
- Corporate America, the Right, and establishment Democrats say, Government bad, Markets good! Unleash the risk-taking power of Markets and we’ll all be rich.
- But they don’t really want to get rid of government safety nets. So these players create the worst of both worlds — corporations can do what they like, but everybody understands that Big Daddy will bail out companies when they get into trouble.
- Eventually the system spirals out of control and crashes. Out goes government bashing, in comes “whatever works” — we do what’s necessary to clean up the mess, and taxpayers foot the bill.
- After a brief respite, we forget what happened. And the dance begins again.
If we’re tired of this dance, what’s the alternative? Is there a better way of thinking about the economy?
I don’t have an answer. But given the economic crisis we’re facing, I think it’s time to start stumbling towards one.
It feels a little weird to take time out in the middle of an economic meltdown to blog about how the economy does & should work. I feel like I should be obsessing over the latest details of the bank bailout or the next Obama bill like the rest of the wonky blogosphere is. But unless I’m freakin’ brilliant and can magically win five more seats for the Democrats, my ranting about, say, derivative regulations will have zero impact. Since I’m not one of those poor folks who’s in the hot seat right now, now’s the time to be thinking big & thinking long-term.
Over the next year I’m going to use this blog to work out my Version 0.5 of a model of how to nudge/influence/shape the economy and the actors in it to create growth, opportunity, and justice. I’ll try to ground it as much as possible in real world consequences: how does this model help us build a better world? How does it help in making tough decisions?
A few things about this project:
- The “stumbling towards” in the blog’s tagline? I really mean it. For at least the first year, I’m going to try to treat this blog as an online intellectual diary — as a place where I can romp in the intellectual mud. It’s going to take me a while to get comfortable with blogging as a diary; it’s so not how I’m used to writing.
- Although I have a healthy-sized ego, I’m not crazy enough to think I’ve got the answer. This blog is simply a place for me to wrestle with the issues and engage with other folks.
- I’ve got messed up hands — carpal tunnel, RSI, whatever you want to call it, my hands aren’t built for Net speed. Let’s just say I’m an involuntary member of the slow blogging movement. And if you post a comment or email me, I may not be able to get back to you quickly. If I don’t, don’t take it personally. I’m probably just having a bad hands week.
