General Discussion
In reply to the discussion: Joseph Stiglitz : The end of neoliberalism and the rebirth of history [View all]Xolodno
(6,412 posts)"Even today, advocates of these theories refuse to accept that their belief in self-regulating markets and their dismissal of externalities as either nonexistent or unimportant led to the deregulation that was pivotal in fueling the crisis. The theory continues to survive, with Ptolemaic attempts to make it fit the facts, which attests to the reality that bad ideas, once established, often have a slow death."
Let this economist pose this question....what incentive is there for an industry to regulate itself? A CEO's pay is determined by profits and growth of the company. Which is often in the short term, there is no mechanism for long term growth. Next, shareholders aren't going to toss a CEO because they think he or she is taking the company the wrong way. They are NOT privy to internal decisions and assume in good faith that the CEO is doing the "best".
And even if they did have concerns, yeah, good luck with that. Due to the corporate raiders of the 80's, poison pills, etc. make it all most impossible to toss them out. They have to rely on the board...and if the board is in cahoots...well....
Globalism has created a system of near free movement of capital....but not labor. Immigration laws and anti collective bargaining laws have severely hampered that. Yes a union town goes down after a company relocates to another country...but that union can't organize the labor in the other country as per conditions the company negotiated with said country.
But hey, those who cling to this say this is the better system despite it collapsing every 10 to 15 years.