This week, two of us are sharing our thoughts about this extremely complex financial crisis. On Monday, I opened the week by asking: How are these events affecting you and your household? On Tuesday, Dr. Jerry Davis from the Ross School of Business offered his “take” on the crisis and raised more questions.
Today, I’m asking for your advice as readers: Is this a good time for a big overhaul? And, is Washington preparing the right kind of overhaul?
At this point, Wall
Street has gone supernova and experts in the Bush Administration are
reassuring us that it is “just” a financial crisis.
is it? Do you agree? There may be more rotten in the state of Denmark than just
the financial sector. As this week’s guest writer, Jerry Davis, argues,
the economy today is so different from the economy of Roosevelt’s
Depression-era reforms that we need to update more institutions than
our financial institutions.
reforms, such Social Security and the National Labor Relations Board,
“addressed some of the insecurities that came from an economy largely
organized around a few dozen major manufacturers.”
As Jerry observes,
those big manufacturers are now extinct or endangered species.
Today, we are a service economy more than anything else. More
Americans work in retail (think Wal-Mart) than in manufacturing.
And those are not secure, well-paying jobs. Americans
face more than a financial crisis. Americans suffer from new economic
insecurities and the institutions meant to buffer us were designed for
a world that no longer exists.
So, PLEASE, click on the Comment link above and tell us what you think: Is
it time for The Big Overhaul?
How are you feeling today about the proposed
$700 billion bailout?
Does the idea make you more secure or less?
Click on the “Comment” link above, or if you prefer to drop us a quick Email,
you can do that as well. We’re also still inviting readers to sign up
for a couple of in-depth surveys Dr. Baker plans to conduct a little
later this fall. To take part in that effort, add your Email address to
the box in the upper left area of our Web site.