Are the Banks Running America?Play
The reason, he says, is that a financial elite has quietly taken over this country and its assumptions — sewn up power, he charges, as surely as in any banana republic — and barred the way to real change.
These are hot words from a top scholar and economist.
This hour, On Point: Simon Johnson on where we stand now in the economic crisis, and why.
You can join the conversation. Does Johnson’s analysis sound over-the-top to you? Just right? Are we taking the right steps to reset the American economy? Does the U.S. really deserve the label “banana republic”?Guest:
Joining us from Washington is Simon Johnson, professor at MIT's Sloan School of Management. Former chief economist at the International Monetary Fund, he's now a senior fellow at the Peterson Institute for International Economics. His new article in The Atlantic, "The Quiet Coup," argues that "the finance industry has effectively captured our government — a state of affairs that more typically describes emerging markets." He co-founded the widely read blog The Baseline Scenario, where you can read his latest commentary.
This program aired on March 31, 2009.