Preventing the Fall of Rome

[marmar]

from YES! Magazine:



Preventing the Fall of Rome
Gar Alperovitz: Why transformative change to the economic system is needed and how it might be accomplished.

by Gar Alperovitz
posted Mar 14, 2012


Although public ownership is surprisingly widespread, it can also be vulnerable to challenge. The fiscal crisis, and conservative resistance to raising taxes, has led some mayors and governors to sell off public assets. In Indiana, Governor Mitch Daniels sold the Indiana Toll Road to Spanish and Australian investors. In Chicago, then-Mayor Richard Daley privatized parking meters and toll collection on the Chicago Skyway and even proposed selling off recycling collection, equipment maintenance, and the annual “Taste of Chicago” festival.

How far continuing financial and political pressures may lead other officials to attempt to secure revenues by selling off public assets is an open question. Public resistance to such strategies, although less widely publicized, has been surprisingly strong in many areas. Toll road sales have been held up in Pennsylvania and New Jersey, and newly elected Chicago Mayor Rahm Emanuel recently voiced his opposition to an attempt to privatize Midway Airport as previously attempted by Daley. An effort to transfer city-owned parking garages to private ownership in Los Angeles also failed when residents and business leaders realized parking rates would spike if the deal went through.

One thing is certain: traditional liberalism, dependent on expensive federal policies and strong labor unions, is moribund. The government no longer has much capacity to use progressive taxation to achieve the goal of equity or to regulate corporations effectively. Congressional deadlocks on such matters are the rule, not the exception. At the same time, ongoing economic stagnation or mild upturns followed by further decay, and “real” unemployment rates in the 15 percent to 16 percent range appear more likely than a return to booming economic times.



Ironically, this grim new order may open the way for the kinds of “evolutionary reconstructive” institutional change described here. Since the Great Depression, liberal activists and policy makers have implicitly assumed they were providing one or another form of “countervailing power” against large corporations. But institutional reconstruction aims either to weaken or displace corporate power. Strategies like anti-trust or efforts to “break up” big banks aim to weaken. Public banking, municipal utilities, and single-payer health plans attempt to displace privately owned companies. At the same time, community-based enterprises offer public officials alternatives to paying large tax-incentive bribes to big corporations. ...................(more)

The complete piece is at: http://www.yesmagazine.org/new-economy/preventing-the-fall-of-rome

[xchrom]

1. I might disagree re taxation - you have to build a case

For taxes and both be on the offense for it & defend it.

Awkward use of 'liberal' where sometimes I think progressive is the better choice.