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Nationalization: It's Not Scary, It's All Around You
Feb 25, 2009
Amidst the punditocracy's handwringing about the supposedly unprecedented possibility of nationalization in America, Paul Krugman
this week reminded his New York Times readers that nationalization is
"as American as apple pie." He noted that the Federal Deposit Insurance
Corporation has been nationalizing about two banks per week, and that
the best way to save our financial system is to temporarily nationalize
it. But before we get scared about the prospect of nationalization (ie.
public/government ownership of major parts of the economy), let's
remember: nationalization already pervades far more than the banking
industry - it's all around us.
For instance, about 45 million Americans rely on public power utilities for their electricity. Those utilities are nationalized - that is, they are owned and operated by government (in this case, municipal governments).
Have you ever taken a subway, a commuter train like New Jersey
Transit, a public bus or Amtrak? Have you ever sent a letter through
the U.S. Postal Service? Then you've benefited from nationalized
services - in those cases, mass transit and mail.
Then there's the health care system, with Medicare creating a
quasi-nationalization model, and the Veterans Administration providing
a fully nationalized system. And what do you know? Medicare is wildly
popular, and the VA system is renowned for its quality.
These are just a few examples of nationalization in our midst. And
as Harvard's Richard Parker notes in Newsweek, our country has a solid
record of responsible nationalization during major crises. In his essay
entitled, "Not a Dirty Word," he reports:
In World War I, the nations' railroads were successfully
nationalized to sustain the war effort. In the 1930s, the
Reconstruction Finance Corp. bought millions of shares in over 6,000
banks in order to rescue them. During World War II, government took
control of the economy's entire pricing system for consumer goods-a
more complex job than taking over several big banks-and did quite well
at it, most economists agree. In the 1980s, the Resolution Trust Corp.
seized hundreds of failed savings and loans in order to save the
system. After 9/11, the government effectively nationalized the
private-security firms at airports, and replaced them with the federal
TSA.
So the next time you hear Rush Limbaugh or some teevee pundit
blathering on about the economic crisis and claiming nationalization is
dangerous and un-American, remember: nationalization is everywhere in
America, and has been for a long time - and it has worked quite well
when done responsibly.
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David Sirota
David Sirota is an award-winning journalist and bestselling author living in Denver, Colorado. He was nominated for an Academy Award for his work helping create the story for the film DON'T LOOK UP, which became one of the most widely viewed movies in Netflix's history. He is the founder and editor of The Daily Poster, an editor at large at Jacobin Magazine and a columnist at The Guardian. He served as Bernie Sanders' presidential campaign speechwriter in 2020. Sirota is the author of "Back to Our Future" and "Hostile Takeover: How Big Money & Corruption Conquered Our Government--And How We Take It Back". His website: www.davidsirota.com.
Amidst the punditocracy's handwringing about the supposedly unprecedented possibility of nationalization in America, Paul Krugman
this week reminded his New York Times readers that nationalization is
"as American as apple pie." He noted that the Federal Deposit Insurance
Corporation has been nationalizing about two banks per week, and that
the best way to save our financial system is to temporarily nationalize
it. But before we get scared about the prospect of nationalization (ie.
public/government ownership of major parts of the economy), let's
remember: nationalization already pervades far more than the banking
industry - it's all around us.
For instance, about 45 million Americans rely on public power utilities for their electricity. Those utilities are nationalized - that is, they are owned and operated by government (in this case, municipal governments).
Have you ever taken a subway, a commuter train like New Jersey
Transit, a public bus or Amtrak? Have you ever sent a letter through
the U.S. Postal Service? Then you've benefited from nationalized
services - in those cases, mass transit and mail.
Then there's the health care system, with Medicare creating a
quasi-nationalization model, and the Veterans Administration providing
a fully nationalized system. And what do you know? Medicare is wildly
popular, and the VA system is renowned for its quality.
These are just a few examples of nationalization in our midst. And
as Harvard's Richard Parker notes in Newsweek, our country has a solid
record of responsible nationalization during major crises. In his essay
entitled, "Not a Dirty Word," he reports:
In World War I, the nations' railroads were successfully
nationalized to sustain the war effort. In the 1930s, the
Reconstruction Finance Corp. bought millions of shares in over 6,000
banks in order to rescue them. During World War II, government took
control of the economy's entire pricing system for consumer goods-a
more complex job than taking over several big banks-and did quite well
at it, most economists agree. In the 1980s, the Resolution Trust Corp.
seized hundreds of failed savings and loans in order to save the
system. After 9/11, the government effectively nationalized the
private-security firms at airports, and replaced them with the federal
TSA.
So the next time you hear Rush Limbaugh or some teevee pundit
blathering on about the economic crisis and claiming nationalization is
dangerous and un-American, remember: nationalization is everywhere in
America, and has been for a long time - and it has worked quite well
when done responsibly.
David Sirota
David Sirota is an award-winning journalist and bestselling author living in Denver, Colorado. He was nominated for an Academy Award for his work helping create the story for the film DON'T LOOK UP, which became one of the most widely viewed movies in Netflix's history. He is the founder and editor of The Daily Poster, an editor at large at Jacobin Magazine and a columnist at The Guardian. He served as Bernie Sanders' presidential campaign speechwriter in 2020. Sirota is the author of "Back to Our Future" and "Hostile Takeover: How Big Money & Corruption Conquered Our Government--And How We Take It Back". His website: www.davidsirota.com.
Amidst the punditocracy's handwringing about the supposedly unprecedented possibility of nationalization in America, Paul Krugman
this week reminded his New York Times readers that nationalization is
"as American as apple pie." He noted that the Federal Deposit Insurance
Corporation has been nationalizing about two banks per week, and that
the best way to save our financial system is to temporarily nationalize
it. But before we get scared about the prospect of nationalization (ie.
public/government ownership of major parts of the economy), let's
remember: nationalization already pervades far more than the banking
industry - it's all around us.
For instance, about 45 million Americans rely on public power utilities for their electricity. Those utilities are nationalized - that is, they are owned and operated by government (in this case, municipal governments).
Have you ever taken a subway, a commuter train like New Jersey
Transit, a public bus or Amtrak? Have you ever sent a letter through
the U.S. Postal Service? Then you've benefited from nationalized
services - in those cases, mass transit and mail.
Then there's the health care system, with Medicare creating a
quasi-nationalization model, and the Veterans Administration providing
a fully nationalized system. And what do you know? Medicare is wildly
popular, and the VA system is renowned for its quality.
These are just a few examples of nationalization in our midst. And
as Harvard's Richard Parker notes in Newsweek, our country has a solid
record of responsible nationalization during major crises. In his essay
entitled, "Not a Dirty Word," he reports:
In World War I, the nations' railroads were successfully
nationalized to sustain the war effort. In the 1930s, the
Reconstruction Finance Corp. bought millions of shares in over 6,000
banks in order to rescue them. During World War II, government took
control of the economy's entire pricing system for consumer goods-a
more complex job than taking over several big banks-and did quite well
at it, most economists agree. In the 1980s, the Resolution Trust Corp.
seized hundreds of failed savings and loans in order to save the
system. After 9/11, the government effectively nationalized the
private-security firms at airports, and replaced them with the federal
TSA.
So the next time you hear Rush Limbaugh or some teevee pundit
blathering on about the economic crisis and claiming nationalization is
dangerous and un-American, remember: nationalization is everywhere in
America, and has been for a long time - and it has worked quite well
when done responsibly.
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