McNabb Versus Krugman
futureofcapitalism.com

USA Today has an interview with/profile of Bill McNabb, CEO of Vanguard, which has $1.3 trillion in assets under management. It sure sounds as if Mr. McNabb doesn't buy Paul Krugman's Keynesian argument that tax cuts shouldn't go to the "rich" because they would just save the money rather than spend it. From the article:

McNabb argues that increasing savings will benefit the economy far more than short-term efforts to boost economic growth. Instead of trying to encourage consumer spending, McNabb says, "We should be talking about savings rates and getting people to live within their means."

"The downside of oversaving is tiny compared to the downside of undersaving," he says. "Is it easy? No. Is it possible or realistic? Yes."

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McNabb Versus Krugman
futureofcapitalism.com

USA Today has an interview with/profile of Bill McNabb, CEO of Vanguard, which has $1.3 trillion in assets under management. It sure sounds as if Mr. McNabb doesn't buy Paul Krugman's Keynesian argument that tax cuts shouldn't go to the "rich" because they would just save the money rather than spend it. From the article:

McNabb argues that increasing savings will benefit the economy far more than short-term efforts to boost economic growth. Instead of trying to encourage consumer spending, McNabb says, "We should be talking about savings rates and getting people to live within their means."

"The downside of oversaving is tiny compared to the downside of undersaving," he says. "Is it easy? No. Is it possible or realistic? Yes."

Read More...