Thursday, November 1, 2012

'Confidence' is a confidence game

Dean Baker writes a brilliant debunking of the Republicon line that the problem with the economy is 'confidence'. In fact as he documents here consumer spending is back up to pre-bubble levels. Investment in commercial buildings, where there is still a backlog from the bubble, is down, but not likely to return until vacant buildings start filling up. However, other investment, as indicated by investment in equipment and software is also almost up to pre-recession levels.

So no, Romney is not 'the confidence fairy', as Krugman puts it derisively, but just a confidence man.

ps. See this earlier post, also referring to a strong argument of Dean Baker against the 'confidence' claim.

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