2012-08-04 | Filed Under SteveG's Posts |
The New Yorker has the article Romney’s “Recovery Plan” Could Bring On Another Recession which echoes my thoughts when I first read the plan.
In today’s Wall Street Journal, the Columbia economist Glenn Hubbard, who is one of Mitt Romney’s top economic advisers, has an op-ed piece entitled “The Romney Plan for Economic Recovery.”
When Hubbard eventually gets to laying out Romney’s alternative, there is nothing new either, just a reiteration of the existing policy plaform: a vague promise to cut federal spending and reduce the budget deficit, an even vaguer plan to cut taxes but in a “revenue-neutral fashion,” and a commitment to repeal Obamacare and Dodd-Frank. Judging by this piece, and by recent statements from Romney himself, the G.O.P. campaign still doesn’t have a recovery program worth the name. Indeed, if we are to believe the evidence of our eyes and ears, he remains committed to immediate spending cuts that could well bring on another recession.
Companies are sitting on trillions of dollars of cash which they do not spend on new factories and hiring employees because there are no freaking customers to keep busy the factories and employees that they already have. What kind of nutbag CEO would invest in more workers, when they have too many?
Glenn Hubbard, dean of Columbia Business School, and former chairman of the Council of Economic Advisers under President George W. Bush, is an economic adviser to Gov. Romney. Somebody should ask Glenn Hubbard to give us the detailed explanation of the economic theory that would cause economic expansion give the situation with corporate free cash that I describe above.
They would have to invent a special kind of Nobel Prize to award him if he were able to cite such a theory. If not, he should be fired as dean of Columbia Business School. What could he be doing for the students at that school when he can spout such foolishness about economics? Either he is totally unqualified to be guiding curriculum on economics, or he would be showing students that it is OK to say anything to get your man elected.
We have had enough of this “say anything to make money” from the people trained in our business schools to last an eternity. We certainly don’t need any more of it from the likes of Glenn Hubbard.