Thursday, December 02, 2010

What's happening in Europe in terms of finance should not be used to justify cutting programs in the United States.

The two problems have separate origins. What happened in Europe was triggered by the economic downturn of the United States, but it had nothing to do with easy credit, predatory lending, or the inflation of the housing market. It had nothing to do with unregulated finance. The fact that people in the U.S. are using Europe as a reason why we should have less, and not more, regulation and social programs is turning reality on its head, since we've never been in the situation Europe is in right now. We essentially have no welfare state. We don't even have effective regulation of even the basic excessive features of capitalism. To say that what we have, or that a very tepid health care reform, could put us in the same situation that Europe is in with regards to state budgets is just absurd. Why not change what banks and other institutions do before trying to talk about what we need to do less of?

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