This 2nd part of the interview between a noted liberal economist and a left Canadian political scientist continues a review and comparison of the crash of the 1930s with the present situation and provides their respective positions on what is needed for constructive change. Galbraith, as one would expect of a liberal, explains away the failures of government action mostly in terms of personnel to effectively reform the system.
Panitch, on the other hand, argues that a more fundamental change is needed.
I think we need to draw the conclusion from this that we should be looking at this inherent crisis-ridden tendency of capitalism as an opportunity to educate people to the need to democratize our economies. And that has to begin with democratizing, turning into democratic public utilities those institutions that control the fundamental decisions about where investment is to go. .... But I think one even wins smaller reforms by putting that larger issue of the lack of democracy in the economy being at the core of the problem. If we put that on the agenda, I think even the smaller reforms are more easily won.But then he backtracks by hoping for another Roosevelt who who would "use the phrases...to the end of developing some more radical perspective". Roosevelt mouthed radical sounding phrases because there existed in the 1930s a strong working class movement that was informed by radical ideas that inspired the successful Russian Revolution.
Under authoritarian, bureaucratic control, the Soviet planners were able to make very rapid advances in industrializing their economy--and there existed no unemployment. In the 1930s the Russian example inspired labor activists and frightened US capitalists. Panitch engages in fanciful thinking by suggesting that a Roosevelt could now be elected in capitalist controlled elections (by referring to an "inauguration address) in order to mouth such rhetorical radical phrases.
And I would hope the lessons we would draw would--that were there to be the kind of mobilization from below, were there to be the kind of political leader who in his inauguration address would be self-confident enough to use the phrases that I quoted Roosevelt used--and I could have quoted many more--that I would hope that this time it would be to the end of developing some more radical perspective than thinking that we're going to get a capitalist state to adequately sit on a capitalist financial system.