You don't say?
Posted on 08/21/2013 4:19:46 PM PDT by Nachum
An Obama appointee and the CEO of Pacific Investment told a crowd at the National Press Club that Obama’s economic policies have fostered income inequality and that political squabbling is stalling economic recovery.
Mohamed El-Erian, CEO of Pacific Investment and chairman of the White House Global Development Council, blamed the administration’s reaction to the Great Recession for increasing income inequality. Rather than launching vast infrastructure projects to put people to work, the government has created a larger supply of money using quantitative easing (QE).
The Federal Reserve has flooded America’s largest banks with billions of dollars via this process in the hopes that banks will pump that money into the economy.
This easy money policy has fueled a surging stock market that does not reflect the true value of America’s economic production. It is a sugar high that will have to come down unless something is done, according to El-Erian.
“The reason [inequality] is getting worse is the policies we’re pursuing to jumpstart the economy,” he said. “We grew up believing that finance was the next stage in capitalism … [but] we need real economic drivers.”
(Excerpt) Read more at freebeacon.com ...
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Imagine that, an honest Obama appointee.
And he’s right that financialism cannot be a long term economic driver when you’re running forty-six consecutive years of wealth-draining trade deficits.
there fixed it
A marked man
El-Erian is a very respected economic pundit; mostly a bond expert, but also on the economy in general. Also, he is a very cool guy. I have followed him for years.
Boehner and all the GOP do nothing.
He is about to get the Paula Deen treatment for embarrassing the Obama’s.
That's the plan.
Maybe so, but he at least has his integrity. He is not a brown nosing sychophant.
Who's "we," kemosabee?
And that Hegelian dialectic thing is so 19th century.
Wrong on two levels.
What was Porkulus for, I might ask? Was it not styled as financing "shovel-ready jobs" (i.e., infrastructure).
Of course, that's not what Porkulus, in fact, did. Instead, it funded unionized public employee pensions and salaries in blue states. Which did nothing about "putting people to work".
Nor will "vast infrastructure investments put people to work" any way in the 20-teens -- no more than they put people to work in the 1930's.
As Reagan (and JFK and GWB) demonstrated, the only way to do that is to lower taxes and leave more profit in the hands of the private sector -- so that real economic growth can be fostered (along with the jobs that come with growth).
Oh...and don't burden the private sector with inefficient regulation and programs -- like Obamacare.
All of this is quite simple, really. But a healthy, growing economy and the associated jobs and prosperity are not what the Obama administration wants.
He appears quite often on the business channels and is interview on Barrons Magazine. He is a classy guy.
It sounds like he is indeed, an honest man.
Has he been speaking out against this admin's policies all along?
He is an economist and is very non-political. That is what makes his statement all the more important. Those that make a living as analysts usually try to avoid political statements.
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