. . . the best course is to ensure that we avoid future subsidies to the undeserving rich. That means more regulation and smarter regulation, not less—and a direct repudiation of arguments advanced by politicians of both parties in the not-so-distant past.
Today’s ideological divide is between Republicans who encourage anti-government fervor and market worship, and Democrats who insist that government can and must balance corporate power by acting when markets fail. No honest observer can still believe—as many once did—that the unbound self-interest of financiers will correct excesses and direct capital to the benefit of the broader economy automatically. No less a libertarian ideologue than Alan Greenspan, the economic “maestro” who drew his inspiration from the writings of Ayn Rand, admitted almost a decade ago that such blind faith was naive and dangerous.
So it is important to cut through the fog of militant ignorance represented by the tea party movement. If the public actually wants to stop bailing out rich brats who make stupid and destructive bets in the Wall Street casino, government must be empowered to oversee derivative trading. And if the public wants a national economy that provides decent jobs and useful goods—rather than super-profits for financial firms—then government should encourage production and construction while sharply regulating speculation. . . READ MORE
As always, painful lessons in America apply with little change in Canada. For example, independent power producers wanted to gamble on the profitability of new power sources but they didn’t want to gamble with their own money. Instead, they purchased a sure bet from the BC Liberals, transferring financial risks to BC Hydro through long-term take or pay contracts. Profits guaranteed by the public no matter what happens; sweet for those few who get the deal.
We have our own institutions of militant ignorance. More sophisticated than teabaggers, and better funded, they are libertarian ideologues protecting interests of the undeserving rich.