13 August 2010

Econopocalypse: Reaganite Blames Republicans

David Stockman, director of the Office of Management and Budget under Reagan, now blames the economic downturn on Republican policies during the last four decades.

From a MarketWatch article:

Stockman sees a class-rebellion, a new revolution, a war against greed and the wealthy. Soon. The trigger will be the growing gap between economic classes: No wonder "that during the last bubble (from 2002 to 2006) the top 1% of Americans -- paid mainly from the Wall Street casino -- received two-thirds of the gain in national income, while the bottom 90% -- mainly dependent on Main Street's shrinking economy -- got only 12%. This growing wealth gap is not the market's fault. It's the decaying fruit of bad economic policy." . . .

His bottom line: "The day of national reckoning has arrived. We will not have a conventional business recovery now, but rather a long hangover of debt liquidation and downsizing ... it's a pity that the modern Republican party offers the American people an irrelevant platform of recycled Keynesianism when the old approach -- balanced budgets, sound money and financial discipline -- is needed more than ever."

4 comments:

Jazzbumpa said...

Stockman is both an idiot and a liar. The Republicans throw the word "Keynesian" around, but either have no concept or willfully distort what it means.

His recipe - balanced budget, sound money (WTF is that? Zero inflation. If so, we've got it.) financial discipline (I suppose that's code for cutting social programs) Is a recipe for 1929, only bigger and worse.

I ripped him a couple of weeks ago,

http://jazzbumpa.blogspot.com/2010/08/stockman-agonistes.html

but - like Rand Paul and Jonah Goldberg - he won't shut the hell up.

WASF,
JzB

libhom said...

The biggest problem isn't deficits vs not. It's priorities and distribution.

Raising taxes on the rich and the corporations they own, creating massive public works programs, saving public employee jobs, and ending the wars all would boost the economy. Yet, they would have different impacts on the deficit.

Karlo said...

I've always felt that we shouldn't get too involved with economic mumbo-jumbo. The bottom line is that when wealth is created by most of society, most of society should receive the dividends. However we get there is immaterial. In the current system, an easy way to achieve this is simply to tax the wealthy at 100% beyond a certain (fairly low) threshold. We should also eliminate profits that aren't created from actual work (rent profits).

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