Alan Greenspan: The Madness Continues

Tuesday, October 02, 2007

From David Sirota a bizarre statement from Alan Greenspan made during his appearance on "Democracy Now." The whole back and forth with Greenspan and Naomi Klein is worth a listen. The money quote selected by Sirota comes in the context of his attack on "populist politics," when Klein puts it to Greenspan that perhaps he might have fostered the rising populist movement. She points out that when he first started with the Reagan administration, chief executives were making 43 times more than their workers; a disparity that had risen to over 400 times at the time of his retirement. His response, in addition to dragging out the education canard, blames a lack of skilled labor in this country. His solution? Open the borders and get some skilled workers in here.

"We ought to be opening up our borders to skilled labor from all parts of the world because if we were to do that we would increase the supply of skilled workers that our schools have been unable to create and as a consequence of that we would lower the average wage of skills and reduce the degree of income inequality in this country."

Follow the logic here. The solution to the wage gap between workers and CEOs is to LOWER the wages of workers?!! My brain just short circuited.

Harry lied to you, Norman. Everything Harry says is a lie. Remember that, Norman: Everything he says is a lie.

Mudd: Now I want you to listen to me very carefully, Norman: I… am… lying.

Norman: You say you are lying, but if everything you say is a lie, then you are telling the truth, but you cannot tell the truth because you always lie... illogical! Illogical! Please explain! You are human; only humans can explain! Illogical!

Also worth a chuckle is his explanation of the housing bubble. Remember when we had no bubble? Only a little "froth."