Is Robert Reich a twit, or does he just play one for money on the internet?
I never cared about Monica Lewinsky. Bill Clinton was a big-picture sort of president, like Ronald Reagan, oddly. Flawed personally, but who are we to be critical? Marriage to Hillary might test anyone’s resolve with cigars and Big Macs. Yet somehow Clinton elevated Robert Reich to Secretary of Labor. Maybe he thought Panetta and Greenspan could keep the ideologue in check.
Reich later resigned and penned Locked in the Cabinet, a “memoir” devoured by left-wing academics despite its fabricated dialogues – proven mismatches with transcripts and C-SPAN tapes. Facts are optional when the narrative sings.
Fast-forward: Reich posted this on December 23:
“Around 70% of the U.S. economy depends on consumer spending. As wealth concentrates in the richest 10%, the rest of America can’t afford to buy enough to keep the economy running.”
Classic Reich: tidy slogan, profound vibe, zero nuance, preached to the CNN faithful.
Yes, consumption is ~70% of GDP. But accounting isn’t causation. Saying the economy “runs on” consumption is like saying a car runs on exhaust because that’s what comes out the back.
Wealth concentration doesn’t vanish spending:
- High earners save more per dollar, true – but they do spend (luxury, services) and, crucially, invest.
- Investment isn’t hoarded in vaults; it funds factories, tech, startups, real estate – creating jobs and future demand. U.S. history proves inequality and growth coexist.
- The economy isn’t a closed moral ecosystem: Government spending, exports, debt expansion, asset bubbles, and credit substitution all prop things up, sometimes for a long time and sometimes disastrously. Reich’s “can’t afford” is doing heroic rhetorical labor here.
Reich smuggles in a fixed “enough” consumption – for full employment? Asset bubbles? Entitlements? That’s the debate, not premise.
His real point is political: Extreme inequality risks instability in a consumption-heavy model. Fair to argue. But he serves it as revealed truth, as if Keynes himself chiseled it.
Reich champions “labor and farmers” while blaming Trump’s tariffs for the price of beef. Thank you Robert, but, as Deming argued (unsuccessfully) to US auto makers, some people will pay more for quality. Detroit disagreed, and Toyota cleaned their clocks. Yes, I’m willing to pay more for local beef. I’m sure Bill Clinton would, had he not gone all vegan on us. Moderation, Bill, like Groucho said about his cigar.
Reich’s got bumper-sticker economics. Feels good, thinks shallow.
Follow Robert and me on X.
The Multidisciplinarian 
Robert Reich, Genius
Posted by Bill Storage in Commentary on December 25, 2025
Is Robert Reich a twit, or does he just play one for money on the internet?
I never cared about Monica Lewinsky. Bill Clinton was a big-picture sort of president, like Ronald Reagan, oddly. Flawed personally, but who are we to be critical? Marriage to Hillary might test anyone’s resolve with cigars and Big Macs. Yet somehow Clinton elevated Robert Reich to Secretary of Labor. Maybe he thought Panetta and Greenspan could keep the ideologue in check.
Reich later resigned and penned Locked in the Cabinet, a “memoir” devoured by left-wing academics despite its fabricated dialogues – proven mismatches with transcripts and C-SPAN tapes. Facts are optional when the narrative sings.
Fast-forward: Reich posted this on December 23:
“Around 70% of the U.S. economy depends on consumer spending. As wealth concentrates in the richest 10%, the rest of America can’t afford to buy enough to keep the economy running.”
Classic Reich: tidy slogan, profound vibe, zero nuance, preached to the CNN faithful.
Yes, consumption is ~70% of GDP. But accounting isn’t causation. Saying the economy “runs on” consumption is like saying a car runs on exhaust because that’s what comes out the back.
Wealth concentration doesn’t vanish spending:
Reich smuggles in a fixed “enough” consumption – for full employment? Asset bubbles? Entitlements? That’s the debate, not premise.
His real point is political: Extreme inequality risks instability in a consumption-heavy model. Fair to argue. But he serves it as revealed truth, as if Keynes himself chiseled it.
Reich champions “labor and farmers” while blaming Trump’s tariffs for the price of beef. Thank you Robert, but, as Deming argued (unsuccessfully) to US auto makers, some people will pay more for quality. Detroit disagreed, and Toyota cleaned their clocks. Yes, I’m willing to pay more for local beef. I’m sure Bill Clinton would, had he not gone all vegan on us. Moderation, Bill, like Groucho said about his cigar.
Reich’s got bumper-sticker economics. Feels good, thinks shallow.
Follow Robert and me on X.
Economics, economy, finance, history, politics
Leave a comment