Thursday, January 29, 2009

U.S. capitalism takes beating at world summit and rightly so; European model extolled for its virtues

The American model of capitalism has taken a rightful beating at this week's World Economic Forum for its unbridled greed that benefits the few at the expense of the many.

And The Wall Street Journal has a fascinating piece about all the criticism. And the reporting is most timely, particularly here in Tennessee where the governor wants to cut higher education funding by 20 percent.

Will our stupid politicians never learn what makes a better society for all?

It reports this excerpt:

DAVOS, Switzerland -- A day after Chinese and Russian leaders blamed a free-wheeling U.S. financial system as the source of the global economic crisis, Europeans here are taking comfort in what they see as their kinder, gentler version of capitalism.

José Manuel Barroso, opening European markets remotely on Thursday from Davos, said the U.S. is looking to the European model of capitalism.

"In Europe, we have a social-market economy," said European Commission President José Manuel Barroso in an interview. "We have universal health care, a more generous system of social security, a general principle of almost free university education. And we want to keep that."

For years, Europe's more-regulated model of capitalism has been maligned by many economists as a study in second-rate market economics. Now, as world leaders seek a way out of the crisis -- and aim to avoid repeating it -- U.S.-style capitalism is under siege and the European model is getting another look.

No comments: