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(See Cox News article.) Rep. Barney Frank, in questioning Bernanke before Congress recently, noted that "The economy is doing very well. But average Americans correctly assert that they are getting little or any of the benefit." Bernanke and Frank buyout might agree about the problem, but what's Bernanke's solution? It's more education: The way to fix the problem buyout is not protectionism against global trading partners, but rather to "continue to strengthen job training and skills acquisition — lifelong learning."It's an opt-repeated mantra, to be certain. Paul Krugman of buyout the New York Times calls it the 80-20 fallacy. "It's the notion that the winners in our increasingly unequal society are a fairly large group — that the 20 percent or so of American workers who have the skills to take advantage of new technology and globalization are pulling away from the 80 percent who don't have these skills." (See New York Times column (available only to Times Select subscribers)). You can probably suspect, since Krugman refers to it a fallacy, what he thinks about this idea:The truth is quite different.
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