The Last Ten Years

I think I see the events of the last ten years a little differently than Cullen Roche does:

My general theory on this era has been simple – we had a big consumer credit crash which left corporations as the strong hands in the economy leading this recovery to look a lot more like the corporate boom of the 90’s than anything we’ve seen in the last 50 years. Yes, I know – the past rhymes and doesn’t repeat, but there are a lot of similarities between now and the late 90’s.

I’d tell the story this way. The federal government’s response to the financial crisis of 2007 was almost entirely to prop up big companies. Big banks. Big automobile companies. There have been no antitrust actions or prosecutions of the CEOs of major businesses. All have received enormous subsidies, both positive and negative subsidies.

What in the world would one expect? Subsidizing big companies has given them the whip hand. We should be surprised at that?

3 comments… add one
  • Guarneri

    “Subsidizing big companies has given them the whip hand. We should be surprised at that?”

    And symbiotically, of course, that’s where the campaign cash comes from.

  • gray shambler

    I remember wondering when we would see the first Billion dollar contract for a ballplayer, then came salary caps.
    Nations can’t rein in corps, or even tax them substantially, they’ll just move offshore. Are they immune? Unstoppable? destined to actually rule the planet? I think so, see how Bayer sailed through WW II. on the losing side!

  • gray shambler

    My point, if not clear, is that there is no entity to impose “salary caps” on corporate growth or profits.

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