by Jerome a Paris
Thu Sep 25th, 2008 at 04:14:43 PM EST
Crisis Stirs Critics of Free Markets Around the World, Calls to Reconsider U.S.-Style Policies
In Europe, the U.S., along with the U.K., represents a deregulated "Anglo-Saxon" version of capitalism -- in contrast to Germany's system involving unions and corporations in government and vice versa, and the strong role taken by the French state in shaping corporate decisions. America's track record of fast-rising productivity and growth has for years pressured Europe to change its ways.
Most economists in Europe still say the region needs more free-market changes to improve long-term growth. And there are limits to how much retrenchment is likely to occur. "The fact is that no policy maker in Europe has a clear vision of what re-regulation would mean," says Nicolas Véron, finance-policy scholar at Brussels think tank Bruegel.
Nicolas, you need to read European Tribune more... Sure, we're not "policy-makers", but I think we have pretty clear ideas on what needs to be done:
- increase marginal tax rates significantly;
- re-regulate labor markets, in particular with increases in minimum wages, and with actual enforcement of existing rules;
- make banking boring by limiting leverage and eliminating banks that are "too big to fail";
- launch a massive public investment plan in public transport infrastructure and renewable energies.
What else? Add your ideas. Let's make it clear that the ideas ARE out there.