Wake-up Call

Resist the Corporate State

Krugman: Obama Liquidates Himself

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Paul Krugman 01/26/10     New York Times

A spending freeze? That’s the brilliant response of the Obama team to their first serious political setback?

It’s appalling on every level.

It’s bad economics, depressing demand when the economy is still suffering from mass unemployment. Jonathan Zasloff writes that Obama seems to have decided to fire Tim Geithner and replace him with “the rotting corpse of Andrew Mellon” (Mellon was Herbert Hoover’s Treasury Secretary, who according to Hoover told him to “liquidate the workers, liquidate the farmers, purge the rottenness”.)

It’s bad long-run fiscal policy, shifting attention away from the essential need to reform health care and focusing on small change instead.

And it’s a betrayal of everything Obama’s supporters thought they were working for. Just like that, Obama has embraced and validated the Republican world-view — and more specifically, he has embraced the policy ideas of the man he defeated in 2008. A correspondent writes, “I feel like an idiot for supporting this guy.”

Now, I still cling to a fantasy: maybe, just possibly, Obama is going to tie his spending freeze to something that would actually help the economy, like an employment tax credit. (No, trivial tax breaks don’t count). There has, however, been no hint of anything like that in the reports so far. Right now, this looks like pure disaster.

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Written by laudyms

January 26, 2010 at 6:51 pm

One Response

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  1. A Republican in South Carolina Sums up the Republican Mindset of disinterest in the public good. Lt. Gov. Andre Bauer who is running for Governor of South Carolina not only thinks that children of unemployed and minimum wage workers should starve, but he even compared them to stray animals: “”My grandmother was not a highly educated woman, but she told me as a small child to quit feeding stray animals,” Bauer told a Greenville-area crowd. “You know why? Because they breed. “

    Sadly this is not just a GOP problem. No one at any level I have heard about is preparing for the retrenching, food security, and reorganization we will need in the near future. Once people have to deal with it directly, they will only be able to care for their nearest and dearest. Obama has squandered perhaps the last outpouring of communal good will the US will see.

    laudyms

    January 26, 2010 at 7:12 pm


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