Huffington: Capitalism isn’t evil, but this isn’t capitalism

In her review of Michael Moore new movie, "Capitalism: A Love Story," Arianna Huffington had this to say about the current state of economic affairs:

In the film, Michael describes capitalism as evil. I disagree. I don't think capitalism is evil. I think what we have right now is not capitalism.

In capitalism as envisioned by its leading lights, including Adam Smith and Alfred Marshall, you need a moral foundation in order for free markets to work. And when a company fails, it fails. It doesn't get bailed out using trillions of dollars of taxpayer money. What we have right now is Corporatism. It's welfare for the rich. It's the government picking winners and losers. It's Wall Street having their taxpayer-funded cake and eating it too. It's socialized losses and privatized gains.

Continue ReadingHuffington: Capitalism isn’t evil, but this isn’t capitalism

Friedman: It’s time for a gas tax, but we don’t have the guts.

According to Thomas Friedman's recent op-ed in the NYT, given that oil prices are way down compared to last year, it's time for a gas tax, but we don't have the guts. We don't have the guts to make hard decisions like France and Denmark, which have both dramatically reduced their dependency on petroleum. Further, a gas tax would also generate much-needed revenue.

Such a tax would make our economy healthier by reducing the deficit, by stimulating the renewable energy industry, by strengthening the dollar through shrinking oil imports and by helping to shift the burden of health care away from business to government so our companies can compete better globally. Such a tax would make our population healthier by expanding health care and reducing emissions. Such a tax would make our national-security healthier by shrinking our dependence on oil from countries that have drawn a bull’s-eye on our backs and by increasing our leverage over petro-dictators, like those in Iran, Russia and Venezuela, through shrinking their oil incomes.

Continue ReadingFriedman: It’s time for a gas tax, but we don’t have the guts.

Krugman: Banks are back to business as usual

In the NYT, Paul Krugman notes that the banks are increasingly engaging in the same risky short-term profiteering that let to the economic meltdown:

In the grim period that followed Lehman’s failure, it seemed inconceivable that bankers would, just a few months later, be going right back to the practices that brought the world’s financial system to the edge of collapse. At the very least, one might have thought, they would show some restraint for fear of creating a public backlash. But now that we’ve stepped back a few paces from the brink — thanks, let’s not forget, to immense, taxpayer-financed rescue packages — the financial sector is rapidly returning to business as usual. Krugman further notes that Obama hasn't yet shown the courage to directly confront the bankers, a move that, according to Krugman, could be politically popular.

Continue ReadingKrugman: Banks are back to business as usual

To get serious about sustainability, move back to the city.

According to Witold Rybczynski (writing in The Atlantic), it's time to get serious about living sustainably. Currently, we do that by going out to buy the latest and greatest gadgets for saving energy. There's a much better foundation for accomplishing this goal of living sustainably:

The problem in the sustainability campaign is that a basic truth has been lost, or at least concealed. Rather than trying to change behavior to actually reduce carbon emissions, politicians and entrepreneurs have sold greening to the public as a kind of accessorizing. Keep doing what you’re doing, goes the message. Just add a solar panel, a wind turbine, a hybrid engine, whatever. But a solar-heated house in the burbs is still a house in the burbs, and if you have to drive to it, even in a Prius, it’s hardly green.
Instead of putting little Band-Aids on the big problem, Rybczynski argues that we ought to move back to the city. We would save much more energy by prohibiting spread-out low-rise buildings than by pasting solar panels on them. "A reasonably well-built and well insulated multifamily building is inherently more sustainable than a detached house." He advocates three or four story "walk-ups," which don't require elevators. These can create sufficient density "about 50 people per acre, to support public transit, walk ability and other urban amenities." Another important approach is to focus on the way we construct our commercial buildings. When we combine residences with commercial and institutional structures, buildings consume 48% of our energy, more than any other sector.

Continue ReadingTo get serious about sustainability, move back to the city.