Goverment regulation of the City.

In his column for  today’s edition of The Observer, Will Hutton argues that the current financial crisis presents the government of the day a heaven-sent opportunity to take control of the financial system and subject it to regulations safeguard public interest.

He believes that ‘the theory has been that markets are so efficient that regulation and state intervention must be as minimal as possible’ , which was never especially good, has now, as never before, been shown to be false.

 

The only reason for not acting till now is that ‘that government and business alike have been in thrall to hegemonic deregulated financial markets and their sole interest – to maximise immediate short term profits.’

 

The ideology and practice of the City can be challenged and reformed, and policies that enhance genuine and fair wealth generation be championed. The floundering government has a heaven-sent opportunity: if Brown and Darling have the imagination and chutzpah to seize it. If they don’t, they should stand aside for those who will. This case needs to be made in office, not in opposition.

 

It is a challenge, as he sees it,  that Labour is almost uniquely positioned to meet.

 

Today’s City is as over-powerful as trade unions were in the Seventies. Nick Clegg’s Lib Dems could lead, but have got lost. Cameron’s Conservatives are the City’s ally. Only pusillanimity and dither stand between Labour and seizing an extraordinary political chance.

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One Response to “Goverment regulation of the City.”

  1. Government regulation of the City 2 « Kevin Cryan online Says:

    […] regulation of the City 2 In my entry to this diary on last Sunday, I recorded that The Observer’s Will Hutton had some very specific recommendations […]

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