John Cassidy, who writes on economics for the New Yorker, is in our view one of the most interesting anhd creative commentators on economic analysis and trends writing in the mainstream today. His perspective might be best characterized as institutionalist-realist, in the tradition of thinkers like Thorstein Veblen, John Kenneth Galbraith, and Hyman Minsky.… Cassidy's latest critical contribution is an online New Yorker news item published on December 12, 2014, carrying the rather prosaic title, “The Winner of the Spending Bill Vote: Jamie Dimon.”… [In this piece] Cassidy…explain[s] how the spending bill passed by the House of Representatives included a rider that rolled back regulations that had been imposed after the Great Financial Crisis on some of the riskier activities of banks. Such speculative activities were to be transferred to the unregulated bank subsidiaries not covered by the federally guaranteed bank insurance system. This has now been reversed and banks are again allowed to engage directly in such high-risk speculative activities, with the losses being picked up by the general public.… There is no doubt that Cassidy is correct, and that the analyses of “left-left” thinkers like Sweezy, one of Monthly Review’s founding editors, and Chomsky, an MR author, have been generally on the mark in pointing out that such outcomes are to be expected in the state management of the economy.
This article can also be found at the Monthly Review website, where most recent articles are published in full.