The business press has described former Federal Reserve Board Chair Alan Greenspan as "saintly." In his testimony before the Senate Banking Committee in February 1997, "Saint Alan" expressed his optimism about "sustainable economic expansion" thanks to "atypical restraint on compensation increases [which] appears to be mainly the consequence of greater worker insecurity":
So he thinks Americans earning less is good for the economy? America would not have to try to compete to boost its exports if it were not for the huge trade deficits it has accumulated over the years-- trade deficits that economists for years tried to convince us were nothing to worry about! These economists need to make up their minds. Is the problem that everyone is not spending enough, or that workers are earning too much? No, I think the business lobby just wants more and more profits. People need to start saving more of their money, and wages need to start going up.
Not a very cunning comment at all. The problem is a trade imbalance created through savings rate issues (i.e. too low in the US, too high in China)
