Publications
Publications
- March 18, 2009
- New Republic
Regulate, Baby, Regulate
Abstract
The U.S. today faces its biggest economic crisis since the Great Depression. That is why Barack Obama and his team have been looking to Franklin Delano Roosevelt for help. The stimulus measure passed by Congress in February that includes money for building infrastructure, strengthening unemployment insurance, and helping state governments is reminiscent of FDR's New Deal. Here, McCraw details that putting money into people's pockets and into institutions is politically easy and economically sensible. But, he stresses that if the government doesn't reinvigorate regulation as well, the credit system will remain sick, banks won't fully recover, and investors and borrowers will keep on believing that they've been hoodwinked and fleeced. Moreover, he points out that only a thorough repair of the agencies that handle securities and banking regulation can prevent new crises down the road.
Keywords
Financial Crisis; Management Teams; Infrastructure; Insurance; Negotiation Deal; Government and Politics; Governing Rules, Regulations, and Reforms; Credit; Banks and Banking; Debt Securities; United States
Citation
McCraw, T. K. "Regulate, Baby, Regulate." New Republic 240, no. 4 (March 18, 2009).