E.J. Dionne, Jr.: When Socialism Saves Capitalism

[babylonsister]

http://www.truthdig.com/report/item/when_socialism_saves_capitalism_20110922/

When Socialism Saves Capitalism

Posted on Sep 21, 2011

By E.J. Dionne, Jr.


Have you noticed that one of the Obama administration’s most successful programs is also its most “socialist” initiative?

OK, the bailout of General Motors and Chrysler was not socialist in the classic sense: the government was not looking to hold onto the companies over the long run. Their turnaround was accomplished in significant part by tough, capitalist management steps.

But, yes, this was socialism—or, perhaps, “state capitalism”—because the government temporarily took substantial ownership in the companies when no one in the private sector was willing to put up enough capital to prevent them from going under. Today, the companies are thriving.

snip//

We did not have to accept the collapse of our domestic auto companies, and we do not have to accept that the Federal Reserve is powerless to give the economy the boost it needs. There is no reason to believe that the federal government is incapable of investing more in schools, roads and other public goods to build for the future and get more money into the hands of consumers now. We do not have to rely on giving rich people tax cuts and then confine ourselves to offering fervent prayers that they might invest some of the money in creating jobs.

We can seek to control our fate, or we can turn the Invisible Hand into a God who commands us to be helpless.

[MBS]

1. I really liked this oped, too

. . especially the parts you put in bold face.

[Supersedeas]

2. This should be topic number one on Political Talk shows, instead of opinion polls and analysis of

cloting and body language of the latest political celebrity du jour.