“The economy suffers from a severe lack of aggregate demand,…”
Oh really? That’s it, huh? That’s the root cause. And what, pray tell, is causing the lack of aggregate demand? If Geithner doesn’t think to ask that question and doesn’t have an answer to it, he is completely discredited as an idiot right from the start.
I would argue that aggregate demand is probably still too high. It’s much higher than people’s legitimate means. The real problem is that the country as a whole has been living beyond its means and is now facing the bankruptcy that must occur from these excesses. If he won’t acknowledge that he’s out of touch.
