What’s good for the donkey is good for the elephant — or at least as politically effective.
ISH Global Insight is looking for a U-shaped recovery: 2 percent growth in 3Q, 2.4 percent in 4Q and then 1.8 percent next year. This would be typical following a banking crisis/recession. I think this will make for a very unhappy electorate.
Not that “W’ (as in the 43rd president), but a W-shaped economy. I was on CNBC today talking healthcare with Howard Dean, and he said he thought the economy would improve and then worsen again. Would that be good or bad for the Obama agenda? Certainly it was a weak economy that got Obama elected and helped him push through the $800 billion American Reinvestment and Recovery Act. But high unemployment has been sapping his popularity. And that has been bad for his agenda, especially healthcare reform. If Dean’s forecast is correct, the Dems better pass healthcare while they can. There might be a lot fewer of them in Congress after 2010.
Here is a devastating critique of the idea of healthcare co-ops in place of a true public option (via Tim Foley at Change.org):