B-school professors blast Bush economic policies
MaxSpeaks is on fire today. His Business School Professors to Bush: Your Policies Stink is a letter from a long list of distinguished business school professors hitting a long of themes we here at Angrybear have been noting. My favorite part of their excellent letter is:
Your economic policies have played a significant role in driving this fiscal collapse. And the economic proposals you have suggested for a potential second term – from diverting Social Security contributions into private accounts to making the recent tax cuts permanent – only promise to exacerbate the crisis by further narrowing the federal revenue base. These sorts of deficits crowd out private investment and are politically addictive. They also place a heavy burden on monetary policy – and create additional pressure for higher interest rates – by stoking inflationary expectations.
At this point, the professors suggest that Bush needs new economic advisors. I disagree. What Bush should have done was to listen to his economic advisors rather than having them write copy for Karl Rove.