By handing the responsibility of bailouts to the Fed and other central banks, lawmakers can pretend they’re not involved.
Wolf here: occasionally I highlight comments that add a different angle or flavor or an illustration or more depth to an article published on Wolf Street. This comment is by NY Geezer, in response to my article, The Structural Jobs Fiasco No One Knows How to Deal with (including a superb video, “Humans need not apply”).
The article discussed how automation, bots, or algos – however we call them – are taking over activities of even highly educated professionals, such as lawyers, doctors, stock traders, or coders. Which raises the thorny question: What are they going to do, these “bright, perfectly capable humans” who are no longer needed and have become “unemployable” due to no fault of their own? What is society going to do?
It elicited a lot of excellent comments. Here is one of them:
By NY Geezer:
Many here express the view that the world’s capitalist democracies are not capable of satisfactorily resolving the related problems of long term unemployment, underemployment, and the unrelenting destruction of the middle class. I concur.
The western democracies have had many years to provide a satisfactory resolution and have failed. Instead, by tending to the ever increasing needs of the crony capitalists they have exacerbated the destruction of the world’s middle classes.
I can see no reason to think that will change.
Voluntary disenfranchisement will not achieve anything. The right to vote is not relevant here. Our political representatives will not offer a satisfactory resolution if we threaten to withhold our votes now.
They were not swayed because 90% of their constituents opposed the bailout proposed by Hank Paulson in 2008. There have been no further bank bailout votes in Congress even though subsequent bailouts have been continuous, much larger and have benefitted foreign interests too.
By handing the responsibility of bailouts to the Federal Reserve and other central banks, lawmakers can pretend that they are not involved. It is by design that voters are kept out of the loop, otherwise they might think they have rights. By NY Geezer, commenting on… The Structural Jobs Fiasco No One Knows How to Deal with (including a superb video, “Humans need not apply”).