This post was edited by 4_boby at 2011-11-23 20:05|
Michael Hudson is great economist. Global Research interview with Hudson (link)
Hudson is asked to propose remedies for the future:
Let’s say that it’s January 2013, and the radical progressive candidate X, Dennis Kucinich or Bernie Sanders, is miraculously elected president, and Michael Hudson is the chief economic advisor. What would you do, given the opportunity with a favorable congress, to transform the American economy in ways that would produce policies you think would at least start to help break the grip that the financial sector has had in devastating the economy in terms of its performance for average households?
He proposes to:
1. Get rid of Wall Street lobbyists in the administration (Geithner/Paulson like people). This cleansing should be carried out also in the Supreme Court (now corporations can legally buy elections).
2. Prosecute all financial criminals.
3. Actively fight with financial monopolies.
4. Nationalize the banking system. The state - not private banks – should have the privilege to create money. Private banks can be engaged in borrowing/lending, but money should be created only by the state (100% reserve banking instead of fractional reserve banking today).
5. Reinstate the Glass-Steagall Act (firewall between commercial and investment banking).
6. Restore progressive tax system. Capital gains and offshore profits should be subject to progressive personal tax, marginal rate should be close to 90%.
7. Remove tax deductibility of interest for investors in general. The US economy faces over-indebtedness. Borrowing should not be encouraged or sponsored by the state.
8. Debts should be written-down.