Goldman Sachs CEO blames lagging economy on Americans’ negative culture
The chief executive officer of Goldman Sachs blames the lagging U.S. economy on Americans’ negativity, which he has partly attributed to Congress and the media.
'[The] economy is not a science, it's a social science,' Lloyd Blankfein told Politico reporter Ben Smith in a live-streamed interview Thursday.
'[The] culture of America has gotten too negative,' he added.
It’s simple ‘Economics 101’ that when people are feeling gloomy about the state of the economy, they hold back on investing, buying and hiring.
But Blankfein says Americans are gloomier than they should be - that the economy is picking up even if financial markets have yet to fully recognize the improvements.
'I'm optimistic, but I will say there's a moment where sentiment is more negative than the facts command. And sentiment matters,' he said.
'It’s a very low risk of the U.S. slinking back into recession, but it’s not zero,' he added.
'There are worries on the horizon but a lot less than there were before.'
The malaise would be helped by ‘less negative reporting,’ he said. But Congress is the main culprit for Americans’ attitude problem.
Pedestrians pass the entrance to the new headquarters building of Goldman Sachs located at 200 West Street in Lower Manhattan
'There are negatives that are overhanging [Washington] that will impede the economy that [Congress] should stop doing,' he said. 'Obviously, one thing that’s impeding is just the poison anti-compromise environment in Washington that makes things very difficult.'
But with Congress facing another debate over the debt ceiling, the sentiment on Capitol Hill is not likely to improve.
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