"What kind of capitalism shall we craft? Larry Summers, President Obama's senior economic adviser, cautioned in an interview in Monday's Financial Times against heeding "those who,just as in the 1930s, tried to learn the lesson that market capitalism didn't work and needed to be replaced with an entirely different model."
Market failures may be strengthened by positive externalities for public interests.
The expansion of the public sector in USA is warranted under the present circumstances i.e. financial crisis but the private sector's initiative and contribution must also be noted for economic growth. The case of China's model (i.e. Human Capitalism with ethics and morality of the most populous nation) may be a case for reference. Jobs must be provided to those who are able and willing to work in the USA and in China for common needs of both nations. Government may be the employer of last resort.
Harold Meyerson's conclusion:" Wall Street's capitalism is dying in disgrace. It is time for a better model." That is what Obama administration is trying to change i.e. to compare notes with other nations aprops of G-20 for April 2nd meeting of leaders in London.
Francis Shieh a.k.a. a lifelong learner of economic systems since I was a graduate student at USF in 1947 to date. March 12, 2009 at 2.38 p.m.
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