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WSJ editorial page deputy editor Dan Henninger weighs in on Geithner's testimony on Libor and the two economies competing for America's wealth.
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Ian McConnell thank you creator lets forget -- and whose -- with this year onset deputy editor of the Wall Street Journal's.
Editorial page what about that response from mr.
Geithner to the Libor situation.
Well I think Geithner is probably sort of joining this crowd that wants to.
Tax somebody would blame for this so called Libor scandal it right it's just not clear at this point exactly what.
Evil and damage was done at the center of this immediately Libor is obviously an average of several rates that there could you know created -- through -- -- So I just think that the Treasury Secretary just feels is a little bit behind the curve on this but I'm not so sure that this talk about the suddenly.
Breaking up the big banks is going to help the markets or the economy right now -- -- -- have something they should have taken taken up back in 2008.
Not up to -- twelve.
Speaking of economies the private economy vs the public economy you've been writing about this in different ways and you you really have kind of mom tight ended up so to speak in your column today and the president making that comment about you -- bill that.
That is an exclamation point is -- not for basically the choice Americans face in November.
Well I think so -- I mean usually when the president says something like this they think he's talking about the government.
But I think what's becoming clear is that.
We talk here about having what the economy is doing but in fact there are now two economies in United States the private economy we understand what that is.
And the public economy a parallel economy that is in competition.
With the private economy for the nation's wealth so when Barack Obama says I want to invest in education I want to invest in energy what he's saying is.
I need some of the GDP some of the wealth the country produces as tax revenue so I can feed.
-- public economy and I actually think he is seeking a mandate in this election to make that public economy dominate the private economy.
You think he'd rather see success he doesn't it in other words you're arguing that he does not want to see.
To the -- that there are these two economies he does not wanna see them both -- he wants -- to do better than the other.
Well I think he believes that the public economy is warm in the -- not that he doesn't believe he just wants the public economy to -- and that's what he meant but you didn't build that you are happy that the Democrats -- is.
Is -- the private accountable and therefore you have to transfer revenue sufficient to allow that the public economy deploring.
We -- already though at the point have been where 24%.
On the up our economy is federal spending bright -- -- So windy not -- like if you want to move that and reversed you need dramatic action on the other side to.
Because we are you have like the health care along we're just beginning does feel feel the impact of that and much bigger government -- on food stamp usage up what 70% the -- there.
I mean that cost there you needed somebody to.
Dial that back -- you not not.
-- back to the traditional since 1968.
Spending as percent of GDP has been about 20% for that entire period.
On Obama and it rose to about 24% over the last four years and a fifteen trillion dollar economy.
That's an enormous transfer of the nation's wealth into the public economy.
Did some Democrats argue that given all the commitments we've made to baby boomer Social Security.
This is the new normal and we should be willing to pay for those political comedy right thank.
To ask for a mandate equal to a bombers.
