Wednesday, July 6, 2011

Krugman Lambasts Obama for his Economic Policy

Here is yet another attempt, one in a very long line of attempts, to point out to Obama the economic mistakes he is making. From his NY Times blog:
...since Obama keeps talking nonsense about economics, at what point do we stop giving him credit for actually knowing better? Maybe at some point we have to accept that he believes what he’s saying.

The question then is why. As I’ve tried to show many times, the facts overwhelmingly refute the anti-Keynes talking points. Neither the invisible bond vigilantes nor the confidence fairy have made an appearance. So why is Obama talking up those talking points?

OK, here’s an unprofessional speculation: maybe it’s personal. Maybe the president just doesn’t like the kind of people who tell him counterintuitive things, who say that the government is not like a family, that it’s not right for the government to tighten its belt when Americans are tightening theirs, that unemployment is not caused by lack of the right skills. Certainly just about all the people who might have tried to make that argument have left the administration or are leaving soon.

And what’s left, I’m afraid, are the Very Serious People. It looks as if those are the people the president feels comfortable with. And that, of course, is a tragedy.
It is well past the point of thinking that Obama just isn't aware of the Keynesian argument. It is clear that Obama sides with the right wing nuts in thinking that the financial crash was a sign of moral weakness and that a decade of austerity (a recession close to depression) is necessary pennance to wring out the sinfulness of the previous financial excesses. Obama has been channeling Andrew Mellon:
Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up from less competent people.

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