Chart on Wages vs. Corporate Profits
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.