[russell]

According to the review, DeLong and Cohen have written a historical analysis of what has worked as economic engines in America's economic history. Their observation is that it is big concrete advancements like Hamilton's banking system, the railroads, and Roosevelt's trust busting. They say things went awry in the 70s and 80s when the economy turned from manufacturing to healthcare and rentier industries like finance, and the adoption of the Free Market ideology. The way back on course is for the government to back big ideas once more.

I'm not sure. The Japanese tried very hard (remember 5th generation computing?) and failed. However, the idea of the historical analysis is intriguing enough that I have ordered a copy. If I can read fast enough, I will try to report back before the topic has migrated into oblivion.

We certainly need some concrete and philosophical changes. The rentier class cannot continue to siphon of all productivity increases to stash into their private asset accounts, without bringing the world to its knees.

[Osiris30]

Is the point of the article really asking government to make bets on industry (like your Japanese example)? Or is that government needs to back employment-absorbing industries like manufacturing (like China today, and Japan / Korea / Taiwan in post-WW2 period)?

[internaut]

> I will try to report back before the topic has migrated into oblivion.

I'll be interested in hearing it.