Comment, analysis and other offerings from Monday’s FT,
General Motors holds a mirror up to America
Former US labour secretary Robert Reich writes: Middle-class jobs that do not need a college degree are disappearing in the US. Job security is all but gone. And the nation is more unequal. GM in its heyday was the model of economic security and widening prosperity. Its decline has mirrored the disappearance of both.
Time to safeguard Europe’s single market
Wolfgang Munchau writes: What is the single biggest danger to the long-term cohesion of the European Union? The failure of the Lisbon treaty? Another foreign policy disaster? Or a low voter turnout at this week’s election to the European parliament? I think not. The biggest danger would be the erosion of the single European market. And it may be happening.
We must be open about our banking problems
UK shadow chancellor George Osborne writes: Europe’s priority should be a co-ordinated response to the danger posed by so-called “zombie” banks. In a recent trip to Washington I found widespread concern that the European banking system was not facing up to its problems. And the message from central banks and international bodies is clear – the fragile banking system is likely to reduce growth across Europe for years.
Editorial comment: To aid or not to aid, that is the question
If Africa’s underdevelopment has been compounded mainly by official aid, as the Zambian economist Dambisa Moyo argues in her book Dead Aid, then addressing it might be as straightforward as she suggests. Aid could be turned off, African governments would work harder to foster growth and private capital might prove more effective in curbing poverty. If aid were the principal vehicle to achieve prosperity the solution would be equally simple. It could be expanded.
Lex on ratings downgrades
Credit rating agencies have been among the whipping boys of the financial crisis. But, until recently, they had not been criticised as investments. David Einhorn, the hedge fund manager who questioned Lehman’s solvency, revealed last week he held a large Moody’s short position.