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Frank takes a similar view, arguing that CEOs “benefit substantially if the risks they take pay off” but “pay no penalty” if their risks lead to losses or even catastrophe — another sign that capitalism, in its current form, isn’t living by its own rules.

Frank also calls for new thinking on the impact of free trade. He argues it can no longer be denied that globalization “is a contributor to the stagnation of wages and it has produced large pools of highly mobile capital.” Mobile capital and the threat of moving a plant abroad give employers a huge advantage in negotiations with employees. “If you’re dealing with someone and you can pick up and leave and he can’t, you have the advantage.”

“Free trade has increased wealth, but it’s been monopolized by a very small number of people,” Frank said. The coming debate will focus not on shutting globalization down but rather on managing its effects with an eye toward the interests of “the most vulnerable people in the country.”

unquote.

The full story:

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/10/AR2008071002264.html?wpisrc=newsletter

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Date: Fri, 11 Jul 2008 16:25:33 -0400
forwarded by: Lucia Akech
Subject: How Captalism’s Reality Check