We have the rare opportunity to change our economic paradigm, from one designed in the 18th century and tinkered with, to a new 21st century model. Our entire method of raising, allocating, and spending has to become more democratic. We have suffered from severely overcapitalizing our economy as a whole since industrialization. We need to reevaluate what and which function are public and which are private.
Example: the car industry, as a model going forward. Presupposing an affirmative need for this industry in our country, the Federal government should do these things
1. Create a unit at the Commerce Dept. that can buy publicly traded securities. 2. Buy Chrysler, Ford, and GM, lock stock and barrel. 3. Separate the assets and liabilities. 4. The former corporate liabilities to be parceled out to agency sub units for debt liquidation, pension guaranty. and federal employee health insurance. 5. Determine approximately how much of a car industry America needs and retain a total number of plants and employees to do it. The federal gov’t retains ownership of the plants which are then leased by the companies. 6. The restructured, lean companies are each offered to the public through an IPO, whose proceeds are then used to fund the agencies ongoing activities.
This can be done with airlines, other critical industries, and renders moot anti-trust issues, as the new owners, the feds, can contractually obligate companies to some behaviors. Additionally long term planning instead of quarter by quarter stock manipulation becomes a vehicle of real value production.