Proving once again that without a teleprompter the guy is not a good speaker. I have to give him half credit here. His point is not about ATMs per se but rather about technology creating dramatic increases in worker productivity. That frequently leads to lower employment. One reason workers have been resisting technological change since the invention of the loom.
In the past, when we were a manufacturing economy rather than a service one, recoveries were simpler. Demand for durable goods increased so did the economy. Now we're a service economy and we're globalized. Being so tightly integrated into a global market things are much more complicated.
That said, the President has thrown billions at the economy in an effort to prime the pump. It hasn't worked because it never works. Since it didn't work he's out of ideas. I honestly believe he was certain that throwing a trillion dollars into the economy would create a roaring boom. It also explains the continual flow of "top economic advisers" who flee back to academia where the Keynesians models work perfectly.Posted by Duffy at June 15, 2011 02:33 PM | TrackBack