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Two competing economic forums: Different issues, disagreement on solutions

By SusanUnPC on January 31, 2009 at 7:20 AM in Current Affairs, Economic Stimulus, Economy, Workers, World News

[Editors' Note: Stay tuned for LD's "Central Station" at 9 a.m. sharp when Larry Doyle is on hand to take all of your questions about your finances, the U.S. economy, the stimulus package, your insurance, your home loan, and any financial crises you may be facing. Hopefully, this story and NewHampster's below will warm you up for the Q&A with our economic expert Larry Doyle. If you're new to this, you write a question to Larry in the comments area, and Larry responds to you just as quickly as he can. You can continue to ask him questions, and read others' questions.]

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Via one of my favorite new Web sites, for the new PBS world news show, WorldFocus, which is now airing on many PBS stations instead of BBC World News. The WorldFocus site features bloggers’ reports and videos from around the world through its “Blogwatch” so that — besides the usual top experts on the news program — we also get to hear from “real people” just like you and me on what’s happening in their countries with the recession.

HERE’s one thing that strikes me every time I visit this site, or view videos of people fighting the recession in other countries! What WE DO IN THIS COUNTRY will have an enormous effect on the lives of people in all of these other countries! Instead of dithering about condoms, our Congress needs a tight, fit, robust stimulus package that will inject a rush of adrenalin into our economic system, because of the ripple effect around the world. We are no longer just U.S. citizens. We are also citizens of the world.

Based almost entirely on bloggers’ stories and videos, this report, “Competing global forums tackle the economy,” focuses on the two world forums going on, each with different agendas:

As several nations gather in Davos, Switzerland, for the 2009 World Economic Forum, others are meeting in Brazil for the World Social Forum.

Both forums will focus on the global economy, though the Davos conference centers around policy and the Brazil meeting looks at social need.

At the World Social Forum, Ecuadorian president Rafael Correa blamed the Davos attendees for the financial crisis, saying, “They are the ones responsible for the crisis. They are not the ones to give us lessons.” Other leaders called for an overhaul of global capitalism.

(I’m not indenting the rest of “Competing global forums tackle the economy,” for ease of reading.”)

THE VIDEOS BELOW ARE QUITE INTERESTING:

The “Musings” blog writes the World Social Forum in Brazil, and argues that people who strictly oppose market-based policies are being “disingenuous.”

“The Mormon Worker” blog also reports on the forum from Brazil, discussing talks on deforestation.

Blogger “Jim Stormes” describes the opening festivities, including an energetic and diverse march.

Watch a video from YouTube user OskarPCastro featuring presentations and gatherings at the World Social Forum:

Ian Bremmer writes in Harvard’s “Davos Diary” about the gloomy mood at Davos, while Jeff Jarvis at “BuzzMachine” writes, “The snow here is much thicker than the discussion.”

Blogger “Ángel Cabrera” writes that the conference in Davos could be an effective way to examine the financial crisis from multiple lenses.

The “Scobleizer” blog writes that the Davos conference could bring about change, but that discussions have not focused enough on small businesses.

Watch a video from the Davos conference’s YouTube page featuring world citizens’ responses to a question about the world’s economic future in 2009.

oowawa

Well, since this thread is about economic issues:

President Obama called “shameful” a Thursday report from the New York comptroller that showed Wall Street firms awarded $18.4 billion in bonuses in 2008, one of the worst years ever on the Street.

So this would indicate that the administration is going to take aggressive action to limit this kind of executive profligacy in hard times, right? wrong! This out this morning:

WASHINGTON (Reuters) – The Obama administration is not likely to impose tougher restrictions on executive pay on most firms receiving aid under the government’s $700 billion financial rescue program, the Washington Post reported on Saturday.

Citing a source familiar with the administration’s deliberations, the Post said officials are concerned that harsh limits could discourage some firms from asking for aid.

Isn’t it good when firms don’t ask for aid? If they don’t show up dying and gasping for air on the doorstep, why rescue them with taxpayer dollars? Am I missing something?
wodiej

no shit….
Welcome Back Carteh

He’s also considering a TARP II, creating a “bad” bank to absorb all the losses from the other banks. That’s another trillion.
lark

Good point.
tek

I think we should be careful about lauding dictators who are creating many of the problems in third-world countries. Correa is a very bad man.
mountainaires

Unions Condemn Davos Delegates in Blistering Attack at Davos

The gloom surrounding this year’s World Economic Forum descended into confrontation yesterday as international labour leaders launched a withering attack on the 1,400 business executives and 41 heads of government at Davos over what the labour leaders alleged was their failure to respond effectively to a deepening crisis of their own creation.

Guy Ryder, the general secretary of the International Trade Union Confederation (ITUC), said that the current financial turmoil had triggered a social timebomb that would lead to deepening civil unrest and soaring crime.

[...]

Mr Ryder, speaking as strikes involving hundreds of thousands of workers erupted across France and Germany, told The Times: “We are on the road to serious social instability, which could be extremely dangerous in some countries to democracy itself.”

[...]

“The certainties that have defined Davos for the past ten years have collapsed,” he said. “We are witnessing the collapse of an entire system of ideas.”

http://business.timesonline.co.uk/tol/business/economics/article5614520.ece

I think Dave Lindorff is right on the mark here:

The Ugly Truth: The American Economy is Not Coming Back

Over the last 20 years, America has degenerated into a nation of consumers, with 72 percent of Gross Domestic Product (sic) now being accounted for by consumer spending—most of it going for things that are produced overseas and shipped here.

That is not an economic model that is sustainable, and it is a model that has just suffered what is certainly a mortal blow.

[...]

The honest truth is that the US is technically bankrupt and in a state of chronic decline, and yet the nation persists in spending a trillion dollars a year on war and preparations for war, as though America were in mortal danger from foreign enemies.

http://www.counterpunch.org/lindorff01302009.html
Elizabeth

If offered a choice between executive compensation and death, banks, just like their customers, will swollow the unfavorable terms of a loan. It really is that basic.

This feels more like the debt of gratitude Obama owes Wall Street for their fantastically generous campaign donations.
LD

Mountainaires…very interesting link. The implications of this economic meltdown are potentially very daunting.
http://dissentingjustice.blogspot.com Darren Hutchinson

I agree with the hypocrisy argument. In fact, many Dems were complicit in the very policies that liberals now claim caused the economic meltdown — but only Republicans get the blame. I think the we have to be consistent. But I generally believe that this mess was not caused by one party or by government. It had many sources. Hold Them Accountable Part II: If Conservatives Caused the Economic Crisis, They Had a Lot of Help from Democrats!
ChooChooMagoo

mountainaires –

Enjoyed the Lindorff article very much. Thanks for sharing.
Annie Oakley

The destruction of our economy has been masked for decades by the growth of structured finance. Essentially, Capital packed up our economy, factory by factory, and sent it overseas. True wealth – the invested capital to create more wealth – has been in decline along with the standard of living for regular citizens for decades, while the magnitude of the decline has been hidden through debt and bubbles. Throughout this era of structured finance, the distribution of wealth has become more lopsided. It is not enough to now restart Wall St. with another capital transfusion. Another bubble on Wall St. may make the banking class happy, but it does nothing for the peasants.

It is a false argument to make this an issue between capitalism and socialism and claim that the complaints of the broader population amount to a call for Socialism. What many of us are advocating for is a better capitalism and a more democratic representation. Our current system is a poor representation of both.
Annie Oakley

I noticed he didn’t mention any shame over that. His donor list read like a who’s who of the troubles. He also set the price tag on the presidency so high as to insure the next election is just as much a special interest auction.
Sassy

Susan, thanks for your work!
I agree that our actions impact the globe, but I am starting to doubt that we even have the ability to move our country in the right direction.
Your video showing protesting workers, from yesterday I believe, and your questioning why we don’t see this here yet…most of us went to our jobs, did what we were told, and kept our mouths shut.
The unions have representation, but their memberships are in decline, and few of them are going to draw fire from their officers.
The only solution is good jobs that people can feel secure enough about to make short-term and long-term commitments to their finances.
http://www.planettalk.net/two-competing-economic-forums-different-issues-disagreement-on/ Two competing economic forums: Different issues, disagreement on … : PlanetTalk.net – Learn the truth , no more lies

[...] Read the original post: Two competing economic forums: Different issues, disagreement on … [...]
Welcome Back Carteh

I would rather pay a trillion dollars to fight a crucial war and ensure the safety of our country and its soldiers than to pay for the mistakes of corrupt Congressmen and the bankers they are lobbied by. In fact, that is a sacrifice I expect my tax dollars to go toward, certainly not honey bees or condoms.
http://usb3gvn.com/ USB 3G

Oh nice, thanks for share!