

SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
To donate by check, phone, or other method, see our More Ways to Give page.


Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
Thomas Edsall devoted his blogpost yesterday to a paper by Daron Acemoglu claiming that the United States can't follow a path like Sweden and have "cuddly capitalism." By this Acemoglu is referring to a welfare state that protects most people from the risks in a mar

However what Edsall, following Acemoglu, overlooks in his discussion is that the United States already has cuddly capitalism. The difference between the United States and Sweden is who gets cuddled. While Sweden's welfare state is designed to provide protections to ordinary people, in the United States it is those on the top who can count on the state's help.
For example, if you are an incompetent bank executive at Goldman Sachs or Citigroup whose reckless lending threatens to sink your bank, you can count on the Treasury Department and the Federal Reserve Board to provide trillions of dollars in below market loans to support your bank through the rough times. If you are a drug or medical supply company you can count on the government to grant you patent monopolies so that no one can compete with you in the market for long periods of time. Highly paid professionals like doctors and lawyers can count on a trade policy that is designed to depress the wages of most people who provide you services, while protecting you from the effects of foreign competition.
There are a long list of ways in which the U.S. government gets very cuddly with those at the top as noted in my classic The End of Loser Liberalism: Making Markets Progressive. Of course those at the top would prefer that the only government interventions that are put up for debate are the ones that help more ordinary people, they would rather keep the interventions that benefit the wealthy out of the discussion. Unfortunately both Acemoglu and Edsall follow this path.
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |

However what Edsall, following Acemoglu, overlooks in his discussion is that the United States already has cuddly capitalism. The difference between the United States and Sweden is who gets cuddled. While Sweden's welfare state is designed to provide protections to ordinary people, in the United States it is those on the top who can count on the state's help.
For example, if you are an incompetent bank executive at Goldman Sachs or Citigroup whose reckless lending threatens to sink your bank, you can count on the Treasury Department and the Federal Reserve Board to provide trillions of dollars in below market loans to support your bank through the rough times. If you are a drug or medical supply company you can count on the government to grant you patent monopolies so that no one can compete with you in the market for long periods of time. Highly paid professionals like doctors and lawyers can count on a trade policy that is designed to depress the wages of most people who provide you services, while protecting you from the effects of foreign competition.
There are a long list of ways in which the U.S. government gets very cuddly with those at the top as noted in my classic The End of Loser Liberalism: Making Markets Progressive. Of course those at the top would prefer that the only government interventions that are put up for debate are the ones that help more ordinary people, they would rather keep the interventions that benefit the wealthy out of the discussion. Unfortunately both Acemoglu and Edsall follow this path.

However what Edsall, following Acemoglu, overlooks in his discussion is that the United States already has cuddly capitalism. The difference between the United States and Sweden is who gets cuddled. While Sweden's welfare state is designed to provide protections to ordinary people, in the United States it is those on the top who can count on the state's help.
For example, if you are an incompetent bank executive at Goldman Sachs or Citigroup whose reckless lending threatens to sink your bank, you can count on the Treasury Department and the Federal Reserve Board to provide trillions of dollars in below market loans to support your bank through the rough times. If you are a drug or medical supply company you can count on the government to grant you patent monopolies so that no one can compete with you in the market for long periods of time. Highly paid professionals like doctors and lawyers can count on a trade policy that is designed to depress the wages of most people who provide you services, while protecting you from the effects of foreign competition.
There are a long list of ways in which the U.S. government gets very cuddly with those at the top as noted in my classic The End of Loser Liberalism: Making Markets Progressive. Of course those at the top would prefer that the only government interventions that are put up for debate are the ones that help more ordinary people, they would rather keep the interventions that benefit the wealthy out of the discussion. Unfortunately both Acemoglu and Edsall follow this path.