With a twinkle in his eye, former neo-robber baron, safety slasher/multiple murderer, and U.S. Treasury Secretary John W. Snow tonight offered the pithiest, purest statement I’ve ever seen of the central claim of our market totalitarian overclass and its bi-partisan political puppets.
To see it, click here, navigate to the video for October 11, 2010, and view the minute from 7:40 to 8:40.
This is indeed, as Snow says, “the theory.” It is the innermost dogma of supply-side economics, which is business investors’ unwavering self-worshiping insistence, the facts be damned. In this context, Snow is relating it to the Federal Reserve’s policy, but “the theory” rules all spheres of economic policy in this age, the White House distinctly included.
The great point of falsity, of course, resides in the phrase “lots of people’s household wealth.” What percentage of the population bases its spending levels on the value of stocks? Infinitesimal, because an infinitesimal percentage owns enough stocks to matter at this level. And the few who do? They save and reinvest a huge share of the income gains they constantly receive.
Alas, all decrepit, outdated ruling classes have long since grown incapable of distinguishing their own circumstances and interests from those of everybody else.