Alan Greenspan Semiannual Testimony on Monetary Policy (7/20) via C-Span was especially interesting to me in that Greenspan did not refute the facts and figures presented to him by Senator Jack Reed.
Reed seemed to be referencing the work of the Economic Policy Institute as it concerns outsourcing and the domestic effects of globalisation.
Real wage growth is down. Fringe benefits are costing employees more(not from EPI).
Most Stock Wealth Not Shared With Many Workers.(pdf)
When Reed inquired of Greenspan what policies Congress should enact to address the growing wealth disparity his answer reflected the views of those who think no actions are needed. According to Greenspan we should place our faith in those supervisors (20%) who have enjoyed increased wealth that they will trickle down those additional revenues to the rest. Of course Reed would have been more effective with policies in hand rather than seeking generalised endorsement to pursue them.
Greenspan also stated that early education, not re-education as in the case of displaced workers upgrading skills, will be the remedy to the currently too-large pool of unemployed or otherwise available workers keeping wages low.
EPI’s most recent assessment of college graduates can be read here if you’re interested. Greenspan didn’t seem to be but then again I didn’t watch the entire programme.
I noticed this post by billmon the day after Greenspan’s appearance that relates to the topic and is much more relevant than this post of mine.
But I also wanted to draw attention to this article which appeared in a paper I read often that seemed to highlight how disingenious Mr. Greenspan was being. This early education is not taking place. And while John Kerry, a supporter of NAFTA, would have you believe education is a priority for him, as well, making health care available to all, he hasn’t been specific enough about what changes he would make and how they’d be financed.
John Kerry should be required to do so.
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