Has Obamanomics already failed?

June 9, 2009

That is is the insta-conclusion of Newt Gingrich. What you can say, I think, is that the administration appears to have been overly optimistic. Indeed, Obama advisers are already admitting that. The economic forecasts driving the stimulus package were too rosy, as was the “stress test” worst case scenario. And had Team Obama been gloomier — as gloomy as the Inauguration Day speech, say — would their policies have been different, would they have followed the advice of folks like Paul Krugman and Robert Kuttner and pushed for a much bigger stimulus package? Or would they have at least front loaded the existing stimulus package by increasing the emphasis on tax cuts vs. “investment” spending? Perhaps. But the gamble they took was to let the Fed pretty much handle the near term (and avoid a depression) while they would focus on bolstering the economy for the longer term and pushing through their policy agenda.

3 comments

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The inauguration day speech was gloomy? Wipe your nose, stop whining and grow up. The inauguration speech was what it should have been: Facing reality (Something that the previous administration and the shirts on Wall Street have been ignoring for at least a decade). There will be no progress (and there will be no future for the US) unless we confront our problems head on. That’s exactly what Obama’s speech (and his policy agenda) are about.

Posted by sarah jacobs | Report as abusive

My point is this, the economy will turn around only when the American people are allowed to become innovative again. The countries who lead in innovation will always have sustained growth, plain and simple. Just too many obstacles for the average American manufacturing worker out there with the rise of cheaper labour in China and India. Americans must become innovative and move away from simple manufacturing. Plain and simple. This isn’t the 1950′s anymore. Go to school and fend for yourself, that’s the only way anyone will survive in the future. There can never be a promise anymore of being with the same company for the rest of your life. Never become complacent always look for improving yourself. This is what the new North American economy should be.

Posted by Diavoli | Report as abusive

“A recession is when your neighbor loses his job; a depression is when you lose yours. And recovery is when Obama loses his.” – Ronald Reagan
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Only in the original 1980 quote it was “when Jimmy Carter loses his”

Posted by Anonymous | Report as abusive