Later On

A blog written for those whose interests more or less match mine.

The Deficit Commission Refuses to Talk to Anyone Who Knows About the Economy

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Bad news, but not unexpected. Congress is too much a subsidiary of Big Business now to take any effective actions that BB doesn’t want. Dean Baker, an economist:

Erskine Bowles, the co-chair of President Obama’s Deficit Commission and a director of the Wall Street investment bank Morgan Stanley,claimed that the current economic crisis (which is projected to add more than $4 trillion to the national debt) was "largely unforeseen." This is not true. Competent economists saw the crisis as an inevitable outcome of the housing bubble. It is remarkable that the deficit commission seems to be relying exclusively on economists who could not see this $8 trillion bubble, the collapse of which wrecked the economy.

The commission also does not appear to be considering any measures that would challenge powerful interest groups like the pharmaceutical industry, the insurance industry, highly-paid medical specialists, or the Wall Street banks. Rather than incur the wrath of these powerful interest groups by reining in medical expenses or reducing the rents earned by Wall Street bankers, the commission seems intent on taking back Social Security and Medicare benefits for ordinary workers. The reporters covering the commission should be reporting on the failure of the commission to follow its mandate in this respect.

Written by Leisureguy

12 July 2010 at 10:21 am

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