Getting the Economy Moving

In response to “There’s a Time to Spend and a Time to Save,” by Martin Feldstein and Kathleen Feldstein, Commentary, Nov. 27:

So the Feldsteins think that once the problems are behind us an increase in the saving rate will help to increase investment.

It never ceases to amaze me how economists and business people create such fantasies by diverting attention from what is important, and the saving rate is not. The economic profession has diverted its own and the public’s attention from the long-lasting stagnation of the world economy. Instead of dealing with this reality, mainstream economists cling to the belief that only temporary aberrations afflict our economy. In support of this position they have created and propagated a myth about a supposed shortage of savings keeping a rein on investment, and hence growth.

When they finally realize the problem is debt and the compounding interest on it, it will be too late.

JOHN KING, Santa Barbara