Monday, March 09, 2009
overpromise and underdeliver
As I read it ... the White House has decided to muddle through on the financial front, relying on economic recovery to rescue the banks rather than the other way around. And with the stimulus plan too small to deliver an economic recovery ... well, you get the picture.
agreed, but this should have been expected. what is politically possible, not what is theoretically desirable, will dominate.
obama is faced with choosing either to 1) put a happy face on what we've got in an effort to stem the rout of public confidence in the near term, hoping that such a reversal does more to boost economic output than any government measure could; or 2) going to war against a compromise package he just got done hammering out, and in the process betraying moderates who sided with him and deepening the rift between himself and congressional republicans and even some conservative democrats -- most of whom are obviously dullard obstructionists but some of whom are necessary for movement on major issues.
krugman's frustrtation is misplaced if it's directed at the obama administration. it's two-party parliamentary politics in a system of popular elections he is opposed to, and he frankly makes a pretty good case that in this instance our political system will fail us.