What's that Larry?
We need to INVEST more in infrastructure? Thanks Captain Obvious!
Gee, hasn't Krugman, Stiglitz et al stated for oh, four years now austerity is stupid and counterproductive?
Summers told the assembled advisors that the right fiscal and monetary policies for the U.S. will emphasize economic growth, not government spending cutbacks. He said increased public and private spending, including more public works projects, would restore confidence. Summers, in one of several times that he cited the 20th century economist John Maynard Keynes, said the nation is now caught in a “liquidity trap.” Individuals and business, with lots of cash on hand, are refusing to spend because they have lost confidence. He also cited Keynes’ paradox of thrift, which includes a warning that excessive saving can retard a recovery.
"they have lost confidence"
in what, Larry?
Here's where Larry and the rest of the uber dog-eat-dog capitalists FAIL. He/they don't want to elaborate on why the monied class are sitting on their cash: simply because our crappy economy/massive poverty means people don't have money to spend on goods and services.. thus there's simply no incentive to invest.
http://www.fa-mag.com/...