ON THE KNIVES IN BUSH’S BACK: REPUBLICAN
ON BUSH’S CHEST: EMERGENCY PLAN – NO
CAPTION: REACTION OF SUPPORTERS
Perhaps more than at any other time in recent years the current financial crisis brings to the fore a question at the root of the great American – and transatlantic – political divide: What is the proper role of government?
According to William Waack, chief international columnist for O Globo of Brazil, the current crisis should prompt the State-Market pendulum to swing decidedly in the direction of the State. But he cautions Social Democrats from being holier than thou:
Waack puts the problem at hand this way:
“What are the long-term social and political consequences of this cataclysm? (Yes, we are confronting a catastrophe). … European commentators (French and German in particular) are signaling the end of the Anglo-Saxon “way” of looking at financial markets. … There’s a debate between the two sides of the Atlantic which is much more cultural than ideological, about the proper role of government – and not just in crisis situations.”
But cautioning social democrats against getting a swelled head, Waack writes:
“Curiously, Europeans are again raising the banner of fundamental economic values like work and savings, versus the “Anglo-Saxon style” of taking out loans and taking risks on capital markets. It’s interesting to note that in societies elsewhere on the planet (Japan for example) “work” and “savings” are values that are greatly cultivated. But even this – and not very long ago – failed to allow the Japanese to escape from a very difficult economic situation.”
“But one can say that in terms of the ‘cultural’ aspects of the debate between State and Market, the pendulum should move strongly in the direction of the former. All of this should considerably raise our level of insecurity when confronting a world in which everything not long ago seemed explained, connected, adjusted and, in the end, controllable.”
By William Waack
Translated By Brandi Miller
September 29, 2008
Brazil – O Globo – Original Article (Portuguese)
Today’s column is about the global financial crisis. First, however, a message for readers: this section of O Globo isn’t published on a daily basis. One feature of the current crisis is the rapid succession of events. Therefore, I’m going to try and concentrate on things that can be read in the next two hours without being old before readers are finished with it.
What are the long-term social and political consequences of this cataclysm? (Yes, we are confronting a catastrophe). I think we will one day consider 2008 as a turning point, just like 1929 ended up being confirmed as a date that foreshadowed monumental change – even if the strongest impact of the crisis only reached the major European economies in 1934-1935.
European commentators (French and German in particular) are signaling the end of the Anglo-Saxon “way” of looking at financial markets. The most common argument is that the main European economies, which are much more regulated than those of the United States and Britain, will suffer less because of this crisis.
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