Stocks and GDP

Doug Henwood dhenwood at panix.com
Fri Jan 29 09:42:10 PST 1999


Charles Brown wrote:


>On historical precedent for bailouts, how about the Marshall Plan ? I'd
>add the S &L Crisis and payments to the military industrial complex for
>obsolete forts all across the territory of the U.S. to Doug's list below.

I was talking about failing entities that are "rescued," typically under stringent conditionality, that in the old days would have been allowed to go under (Chysler, about 1,000 S&Ls) or to default outright (New York City in 1975, Mexico in 1982).


>I don't see where the numbers show that private enterprise is more
>efficient than public enterprise.

Even World Bank economists are forced to admit that the data on privatization is at best "mixed." But lots of post-WW II nationalizations were of failing enterprises. Britain nationalized steel and coal, but left the City of London private.

Doug



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