Monday, December 03, 2012

Chart on Wages vs. Corporate Profits

This is the biggest failure of President Obama. The red line represents corporate profits. The blue line is wages. The corporate world has done well after the 2008 Wall Street crash. Wages have not kept up with cost of living expenses. Obama spent much of his first-term with an addictive need to be centrist. Sec. of Treasury Tim Geithner viewed aid for the middle class with contempt.

The economic team went round and round. Geithner would hold his views close, but occasionally he would get frustrated. Once, as [then chairwoman of the Council of Economic Advisers Christina] Romer pressed for more stimulus spending, Geithner snapped. Stimulus, he told Romer, was “sugar,” and its effect was fleeting. The administration, he urged, needed to focus on long-term economic growth, and the first step was reining in the debt.

Austerity measures would only strengthen a recession during an economic downturn. Economists Carmen M. Reinhart & Kenneth S. Rogoff predicted the economic crisis and that policymakers would hurt the recovery by implementing austerity policies. Geithner is too stupid to be Treasury Secretary.

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