These are the personal views of Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business and former chief economist at the U.S. International Trade Commission:
By appointing Bill Daley Chief of Staff, President Barack Obama hopes to present a centrist face to voters skeptical about his commitment to free enterprise.
Don’t be fooled. Deeper in the administration, the president’s electricians are busily rewiring U.S. capitalism for failure.
The recent crisis was caused by a huge international trade deficit, massive foreign borrowing and shoddy Wall Street practices.
From 2004 to 2008, Americans spent and consumed 5% more than they produced and earned, scarfing up electronic devices made in China, Middle East oil and houses whose mortgages they couldn’t afford. The Chinese and Middle East royals bought U.S. bonds and other securities with the dollars not spent on U.S. exports, and Wall Street banks recycled those to consumers through first and second mortgages.