Robert Reich’s interesting 2 minute explanation of the economy. Dude, surely you jest!


In the interest of putting up good arguments *against* my general point of view (which I posted in “Shut up or Cut”, here’s the always-sharp-but- often-wrong Robert Reich. As with most tribal viewpoints, Reich makes several correct points and connects them in ways that are fairly rational. HOWEVER, what you miss with this type of analysis is the full and bigger picture that emerges when the many other factors in an economy are included. It’s a game super smart folks like Reich play super well, but for me it undermines their long term credibility since he’s more advocate and politico here than economist. Reich is a left wing economist and therefore focuses too narrowly on distribution issues as in this video. Compare with the CATO boys – the “right wing” economists who focus too narrowly on the *production* side of the equation. They largely ignore income distribution issues and mostly whine about how tax and government inhibit economic development (good points, but too narrow). On balance I line up more with the CATO views because I think they are far more representative of the forces and ideas that created our massive, vibrant, and mostly successfully economic powerhouse, but I’d like to see more from the right about the desirability of a more level income distribution. NOT so much because it would seem to be “fairer”, but simply because it is likely to create more stability both economically and culturally. So I’d agree with Reich about that part at least.