Yet more evidence that the Bush administration is run by complete morons. This comes from Edward Lazear, chairman of the Council of Economic Advisors:
The other thing I would say is that if we look at the behavior rather than the responses to polls, the behavior is consistent with a strong economy. We see consumption being high. In fact, the saving rate is negative right now.
Now ask yourself, what does it mean if the saving rate is negative? This hardly takes a genius. It means that people are spending more money than they are taking in. Combine that with the fact that unlike the Federal government, ordinary citizens are not allowed to rack up deficits forever. My local bank isn't going to let me have a negative balance in my account. So what does that mean when people's savings reaches zero? I'm no economist, but it seems to me that if people can't get by on what they're making that we have a problem.
Posted by Jason at August 19, 2006 10:46 AM