Tad DeHaven at Cato gets it right: how can it be that the huge deficits it "inherited" are the cause of our current problems because they lower economic growth yet also be true that more spending and larger deficits are the way to generate the growth that will solve said problems?
Tad asks the multi-trillion dollar question:
And the solution to the economic downturn caused in part by too much spending and debt is to increase deficit spending and further run up the national debt? By the administration’s own logic, shouldn’t we be experiencing economic growth with all the deficit spending it “inherited?”
This is politics, not logic.
Or, to use the technical philosophy language of Harry Frankfurt, this is bullshit. And Obama knows it.
Posted by: Greg Ransom | February 26, 2009 at 03:59 PM
Oh...pick me...pick me....
It is because under Obama, this administration will be more responsible than the previous. He will cut all the wasteful, pork barrell, ear mark spending that the previous congress and administration passed on to him. (He showed in the most recent stimulus bill that there will not be these types of shenanigans under his watch.) His administration knows how to spend the money more wisely on things like education, green engergy, health care and banks that were "stress tested" so we know they won't fail.
HE SHOOTS...HE SCORES!
No? That's not right? Well then, you are just a toady of the Republican party.
Posted by: Matt C. | February 26, 2009 at 04:00 PM
Hey Greg Ransom - I'm not sure. Either he knows: 1. "this is bullshit,"; 2. he is a full fledged Keynesian; 3. worse - this is about gaining and retaining power; 4. he may just be ignorant. He might not get economics at all.
I think its a combination of all four. I also cannot separate his history of hanging out with Marxist either.
Posted by: Doug Thorson | February 26, 2009 at 08:00 PM
It's unbelievable the hubris of this administration.
Just saw the economic projections that will pave the way for him to trim the budget, 3.2% in '10, 4% in '11, 4.6% in '12.
Say what?!
Posted by: Lucas | February 26, 2009 at 09:18 PM
Maybe he believes that an increase in debt can have a short-term positive effect, while a high level of debt can have a long-term negative effect.
Also, he might imagine that deficit spending by previous governments was wasteful, but under his watch money will be spent on goods with a net positive social benefit.
Posted by: Jacob | February 26, 2009 at 10:48 PM
Jokes aside, make no mistake: O'Bama has no clue about economics. However, he IS learning -- from the Keynesians in his own administration. Remember that remark of his about "This is a SPENDING bill -- that's the point. I mean, seriously..." ?
When he said this, it seemed clear to me that he was repeating what he thought to be some nugget of economic wisdom -- and those stupid Republicans just didn't get it. You know, not being as well versed in economics and whatnot as the Great Barack, Our Maximum Leader Obama, they had no idea that the Keynesian multiplyer would work its magic and stimulate our economy, jump-start it, give it a shot in the arm, revive it, mix metaphors and save the world...
Posted by: James | February 28, 2009 at 12:31 AM
Oh, but see Obama's deficits aren't going to be because of tax breaks for the wealthiest among us!
What rubbish.
Posted by: Todd | March 01, 2009 at 05:20 PM
That hope and change, That Hope and Change,
I do not like that Hope and Change.
What can it mean when jobs are lost,Recession is when your neighbor is out of work,
a Depression is when you are out of work, and a recovery is when Obama is out of work.
God help us for tha damable damage he has caused.
Posted by: Kevin Turner | February 01, 2010 at 09:34 AM