Tuesday, November 24th, 2009

Tuesday, November 24th, 2009 - POL Tuesday, November 24,...

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POL Tuesday, November 24, 2009 American Financial Crisis - cause: regulatory and market failure - cause of the cause: regulatory capture - cause of the cause of the cause: American institutional order - suggests that reform will be difFcult - stimulus spending: in excess of what the governments are taking in - in order to spend on projects to increase employment - in a recession the only sector of the economy that spends is government (g in GDP calculation function) - you cannot have a capitalist society without a state - In US the regulatory regime is light, at one end of the spectrum - free to do what they want with their capital. Capital moves very freely from one business to another, labour moves quickly from one job to another. - cure for all of this, is a renewed/ new regulatory environment in which goods will be highly restricted and regulated - but why don ʼ t they do it? - the american institutional order makes this hard to do - the USA, because of its
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Tuesday, November 24th, 2009 - POL Tuesday, November 24,...

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