Friday, October 10, 2008

How to Think about the Crisis

My piece on How to Think About the Crisis was just published in Radical Notes


Sandwichman said...


In your piece you ask, "will jobs also disappear?" You don't really answer the question, saying only that the bailout will continue practices that have "caused significant hardship to labor" and that "a collapse will also harm workers and other ordinary people..."

This is both inconclusive and pessimistic. The answer is either a bailout or a collapse WILL cause significant job loss -- a bailout because it won't address the underlying structural problems and a collapse because it will disrupt economic activity.

But those are not the only options. The other options are policies to uncouple the "real economy" from the financial swamp.

Michael Perelman said...

A crash will cause a rapid loss of jobs. The bailout will facilitate a slower, but long-term process of job destruction.