Dollars and Sense

During an event last week at the Woodrow Wilson International Center for Scholars, Morgan Stanley Chief Economist Stephen S. Roach took Washington to task. Washington is running a [national savings] policy right now that is leaving America in the worst possible position…of any leading country….Misaligned U.S. macroeconomic policies set up this situation. He also specifically ...

During an event last week at the Woodrow Wilson International Center for Scholars, Morgan Stanley Chief Economist Stephen S. Roach took Washington to task.

During an event last week at the Woodrow Wilson International Center for Scholars, Morgan Stanley Chief Economist Stephen S. Roach took Washington to task.

Washington is running a [national savings] policy right now that is leaving America in the worst possible position…of any leading country….Misaligned U.S. macroeconomic policies set up this situation.

He also specifically criticized the president's grasp on trickle-down economics:

We've got a guy down there at 1600 Pennsylvania who can't figure out why the economy is booming and he gets no credit for the boom.

Why? The other economists present agreed that because of stagnant real wages over the last decade, the raw numbers technically show a strong economy but the average American doesn't see a benefit. The question is: how will the Republicans and Democrats spin it for November?

The introductory speaker for the event, Senator Paul Sarbanes, had to leave quickly after his remarks to attend to "some pressing business on the Hill." In response, Roach later said:

With all due respect to Senator Sarbanes, I wonder about the quality of the public debate on these [economic] issues. When I am invited to testify before Congress, even the senator or congressman who invited me sometimes has 'more pressing matters' and I am often left speaking to a group of stenographers.

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