Paul Krugman: Gordon the Unlucky
What would have happened if hanging chads and the Supreme Court hadn’t denied Al Gore the White House in 2000? Many things would clearly have been different over the next eight years.
But one thing would probably have been the same: There would have been a huge housing bubble and a financial crisis when the bubble burst. And if Democrats had been in power when the bad news arrived, they would have taken the blame, even though things would surely have been as bad or worse under Republican rule. You now understand the essentials of the current political situation in Britain.
For much of the past 30 years, politics and policy here and in America have moved in tandem. We had Reagan; they had Thatcher. We had the Garn-St. Germain Act of 1982, which dismantled New Deal-era banking regulation; they had the Big Bang of 1986, which deregulated London’s financial industry. Both nations had an explosion of household debt and saw their financial systems become increasingly unsound.
But one thing would probably have been the same: There would have been a huge housing bubble and a financial crisis when the bubble burst. And if Democrats had been in power when the bad news arrived, they would have taken the blame, even though things would surely have been as bad or worse under Republican rule. You now understand the essentials of the current political situation in Britain.
For much of the past 30 years, politics and policy here and in America have moved in tandem. We had Reagan; they had Thatcher. We had the Garn-St. Germain Act of 1982, which dismantled New Deal-era banking regulation; they had the Big Bang of 1986, which deregulated London’s financial industry. Both nations had an explosion of household debt and saw their financial systems become increasingly unsound.
posted by temporal at 6/09/2009
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