I Hope Robert Reich Is Wrong

Posted May 4, 2012
By Clay Cerny

Former Labor Secretary Robert Reich is a great economist.  That said, I hope his latest column misses the mark.  Reich says the American economy has “stalled.”  He attributes the problem to cutbacks in government spending, which we have also seen in several European countries.  Then Reich digs deeper:  “But widening inequality is the underlying culprit here. As long as almost all the gains from economic growth continue to go to the top, the vast middle class doesn’t have the purchasing power to boost the economy on its own.”  This argument makes sense.  Still, I hope he’s missing something.