Some of you may remember Greg Mankiw. He was chair of President Bush’s Council of Economic Advisors. He is also the same guy who wrote that “trickle-down” theory (i.e. tax cuts for the rich creates growth) was a “crank theory” in his first text book. But then he left this section out in his next text book, which happened to come out at the same time that he was being considered for an appointment on President Bush’s Council of Economic Advisors – which he secured. After helping to add almost $4 trillion in national debt by providing intellectual cover for Bush’s disasterous “trickle down” economic policies Mankiw is at it again.
A couple of days ago he wrote that investment banks that find themselves in trouble, and have to go to the federal government (i.e. the Federal Reserve) for help, might end up being regulated like commercial banks under an Obama administration – as if this is a bad thing. Fortunately, UC Berkeley economics professor Brad de Long helps us understand why Mankiw is wrong, again.
Look, I have no problem with people like Greg Mankiw finding their place in the sun, and then selling out their profession in order to gain access to power. But for Mankiw – and there will be more once the Bush presidency is finally over – to come out and assert that market institutions like investment banks don’t need regulating after they’ve speculated their way into trouble demonstrates that ideology has always trumped the facts for the Bush administration. They simply don't get it.
That anyone pays attention to people like Harvard's Greg Mankiw, war monger Paul Wolfowitz, FOX News' William Kristol, the Washington Post's Fred Hiatt, and other Bush enablers, explains why our country is in the position it is today. It’s also the equivalent of sticking your head in the sand and marveling at the serenity (or is that "serendipity") of it all.
Hey, I have an idea. Why don’t we make President Bush’s tax cuts permanent and invade Iran? That should fix what ails this country, right? This mind-set, my friends, helps to explain the John McCain vote.
- Mark
No comments:
Post a Comment