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Summers Blames People Who Save

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We are simply drowning with people in charge who have no real world experience. According to the former US Treasury Secretary and Harvard economist Larry Summers “the world suffers from a savings surplus and therefore threatens to fall into a secular stagnation.” He looks at the world through fogged glasses – not even a rose colored pair. He claims that now for decades to come we will have to adjust accordingly to slower economic growth and increasing economic and social problems. The reason for this is that in some countries such as China and Germany, people saved too much, rather than consume or to invest. Therefore, they exported their savings abroad and thus led to an oversupply of savings, for there is no sufficient demand. Summers’ solution –  the cash-free economy.

Nobody seems to be willing to look at the role of government and how it has promised pensions it never funded, corruption is so widespread, there can never be any reform, and the solution in government on both left and right – raise taxes. And they justify this by blaming capitalism and their ultimate solution is total government control. Economists are typically paid by government directly or indirectly in academia and those who have real world experience are not interested in getting involved in the mud-wresting sport of politics.

Somehow it’s never those in charge who ever screw things up. It’s always We The People.