Saturday, January 24, 2009

"Lemon Socialism"

Former Clinton Secretary of Labor Bob Reich:

Put it all together and at this rate, the government -- that is, taxpayers -- will own much of the housing, auto, and financial sectors of the economy, those sectors that are failing fastest...

What's left? Most of high-tech, entertainment, hospitality, retail, and commodities. So far, at least, we taxpayers are not propping them up. And when the economy turns up -- perhaps as soon as next year, most likely later -- these sectors have a good chance of rebounding.

But the others -- the ones the government is coming to own or manage -- are less likely to rebound as quickly, if ever....

It's called Lemon Socialism. Taxpayers support the lemons. Capitalism is reserved for the winners.

Since Reich is considered to be left-of-center, I find his expressions of horror throughout this crisis to be quite telling.

2 comments:

Keith Walters said...

Nice!

Keith Walters said...

Check this out:

http://business.timesonline.co.uk/tol/business/economics/article5581225.ece