We’re sitting here listening to Treausry Secretary Tim Geithner defend the administration’s budget to Congress, and understandably many of the members are concerned about the eye-popping deficits. In response, Geithner keeps talking about how everything would be fine, if only we hadn’t been “hit” by this recession.
This leads us to wonder if Geithner views the recession as though it were a giant asteroid hurtling from space, that just happened to cross paths with us. Cause if so, this suggests that the approach to “fixing” the economy is just to dig out and get back to business as usual.
That’s fine. But if the recession is not an asteroid, but about something fundamentally wrong with a system characterised by out-of-control spending in both the public and private spheres, then just digging ourselves out and getting back to the status quo won’t do much good.
So which does Timmy Geithner believe?