Wednesday, May 14, 2008

Our Great Economic U-Turn -

Surprising words from the WSJ. A pro-labor plea is not what I usually expect to read in their pages (or on the website.)

Growing income inequality, rising inflation, the credit crisis, an unregulated financial system that seems to have run amok all play into what seems to me to be a sea-change in society's general take on government and regulation.

It feels to me that we're going through a generational change, similar to the one that occurred in the 1980s. Society will be demanding more from government and while huge, bloated bureaucracies will (hopefully) remain out of style (although we still seem to have them IMHO), society in general will demand govt. to be more pro-active in addressing problems. I don't view this as "anti-market" per se, but a realization that the market cannot solve all problems and that markets by their very nature (profit-maximizing) need to be contained in some ways so they can operate for the benefit of society.

The change is happening, regardless of who wins the presidential race in Nov. The only difference Nov. will make is the degree of change.

Our Great Economic U-Turn -

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