At almost $1 trillion, and counting, the Wall Street bailout will cost taxpayers as much as the Iraq war. Barack Obama squandered the chance to lead with an alternative plan to the Wall Street bailout. Instead both Obama and McCain pushed for a plan that’s not only deeply unpopular but potentially as costly as a new Iraq war.
The financial crisis and the real economy
Leo Panitch: The death of the US trade union and Great Society have left the real economy vulnerable
The financial crisis at the local level
In the third segment of Senior Editor Paul Jay’s discussion with Leo Panitch, Leo explains how the credit crunch will affect state and municipal governments. Leo points out that the Great Depression had its roots in the bankruptcy of state and municipal governments, offering that in such a situation the national government must intervene to keep the states and municipalities solvent. Leo advocates for a hybrid of increased taxation and deficit spending to finance this, adding finally that a real solution requires more than a change in policy, but a change in deep structures.