Vince Cable And Elizabeth Warren Protect Consumers Interests

U.K. Business Secretary Vince Cable is on record as saying he will "shine a harsh light into the murky world of corporate behavior." Elizabeth Warren, Assistant To President Obama and Advisor to The Treasury Secretary Tim Geithner said "consumers need good information so that they can make good decisions." Both are working in the interests of consumers on both sides of the Atlantic, and at an unusual time.

Worldwide economic performance is still poor. The traditional market economies of America and Britain, which have lived off an overcommitted credit system for almost a decade, have seen jobs go to newly industrialized countries at such a rapid rate that basic manufacturing industry has shrank, taking many service jobs along with it.

Over that time, banks and financial institutions have developed systems to move money where it's cheapest, including derivatives schemes that permit an investor to bet against their own investments in risky financial situations. Such an activity has reduced the incentive to invest in plant and equipment in American and Britain. Additionally, the same institutions have developed new transactions fees and practices that harm the consumer.

All of this has created the climate for Vince Cable and Elizabeth Warren. The fact that they're needed at all should be of concern to any observer of the International economic condition. The needed component is complete government-aided industrial reconstruction and protectionism.

Having Vince Cable And Elizabeth Warren in power positions watching business is a great step, but only part of the whole. A complete plan for business that does for the private sector what the U.S. Economic Stimulus Package does for the public sector is needed.

Yes, America and Britain need a system of targeted subsidies to key industries that help businesses pay for labor costs, thus increasing the need for labor and upping production.