I like Robert Reich. But he is all wrong. What is interesting is that American economists, regardless of their political leaning, all have the same perspective. And British economists, regardless of their political leaning, all have a very different (and correct) perspective on the economy. It's part of the end of liberal vs. conservative and the start of This Century vs. Last Century. Now here why Reich is wrong. It is a primer on how American economists think.
1.Consumers create economic growth. WRONG. Business investment creates economic growth.
2.General Motors is an example of a "come back" story. WRONG. GM is in decline, part of the decline of the Industrial Age.
3.Future workers will not earn as much as workers in the past. WRONG. Knowledge workers will earn twice as much as the average worker today.
4.What we should produce is tangible goods. WRONG. The American economy should produce intangible goods.
He is all wrong, right on down the line. British economists "get it," American economists do not. If you want to know how to turn the economy around, Robert Reich could do it single handedly by raising the correct economic issues of the day.
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