For Immediate Release

Contact: 

Taruna Godric, 461-916-5202 ext. 414

Email: smcommunications@therealnews.com

The Real News Network

The Roots and Remedies of The Financial Crisis

Leo Panitch: It's time to make banking a public utility

WASHINGTON - In
his discussion with Senior Editor Paul Jay, Leo Panitch summarizes the
context and history leading to the current financial crisis.  Historically, the crisis has its roots in the 1960s during the US war in Viet Nam and a domestic period of social upheaval.  Responding
from pressure to fund the Viet Nam war and also to fund a domestic 'War
on Poverty', the US government drastically reduced its public
expenditure and left the provision of public housing to the private
domain.  Panitch argues the current US debt 'isn't poor
people's fault' but is a 'product of not being willing to have public
expenditure'.

Panitch suggests two necessary changes for the US government during this economic transition.  First, it must put in place a more equitable redistributive taxation system.  Second, it needs a reallocation of state expenditure.

The
reallocation of state expenditure may be compromised by the potential
future need for increased American military expenditure.  For
example, Panitch states that the realization of 'threats' from
Pakistan, Russia and Iran could result in the continued need for
military spending. 

The current economic crisis requires a historical understanding.  As Panitch states, 'a capitalist system will self-create contradictions'.

Watch the full story on The Real News Network: The Roots and Remedies of The Financial Crisis

 

###

This is the world we live in. This is the world we cover.

Because of people like you, another world is possible. There are many battles to be won, but we will battle them together—all of us. Common Dreams is not your normal news site. We don't survive on clicks. We don't want advertising dollars. We want the world to be a better place. But we can't do it alone. It doesn't work that way. We need you. If you can help today—because every gift of every size matters—please do. Without Your Support We Simply Don't Exist.

Share This Article

More in: