Monday, May 2, 2011

Pimco CEO Worries about Unemployment

This is unusual. The rich normally are ecstatic to see lots of unemployed because it keeps wages down (cheaper to run a business) and it keeps inflation low (bond holders love low inflation). But here is Mohamed El-Erian who runs one of the world's largest bond investment companies.

At 3:50 into this video he says that the US is "sleep-walking through the unemployment crisis" and that unemployment is the "most pressing" issue on the economic front. This surprises me because he shows real concerns for the economy of the bottom 90% of the population. That is wonderful. If only more of the fat cats would turn over a new leaf and show this same concern for the great majority of the population!

At 11:20 he again surprises me by saying that the US economy still needs more stimulus. But he admits that the political "debate" has made stimulus "more difficult". That is tragic for the bottom 90% because it means that the economy won't grow as fast as it needs to which in turn means that wages will stay low.

I keep looking for a sign that the hard rightward swing of politics over the last 40 years is finally going to move to the left. This is one possible sign of a leftward trend. The fact that Buffet & Gates and other billionaires have decided to compete as philanthropists is another. I just wish the deadly fascination with glitter and excitement over "the rich" can go away and people see that these people are now "making jobs" for others and there are no "crumbs" falling from their table to allow wealth to trickle down. I thought the 2008 financial crisis would have made that case, but apparently most people have not yet woken up to the obscene and insatiable greed of the multi-billionaires.

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