Quote of the Day
July 12, 2010

‘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 to rein in medical expenses or
reduce 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.’

Economist Dean Baker
Beat the Press
July 11, 2010