The dismal state of the economy presents President-elect Barack Obama with the chance not just to produce a recovery but to restore a more egalitarian society -- and a progressive majority.
Robert Kuttner, economist and co-editor of the American Prospect, writes:
History has delivered Barack Obama the greatest economic crisis since the one that greeted Franklin Roosevelt. As in 1933, the crisis is the direct result of free-market ideology and conservative misrule, which once again stand disgraced. This creates a once-in-a-century opportunity for Obama to redeem American progressivism as the nation's majority philosophy, with government playing a far more active role in the economy -- not just to produce a recovery but to restore a more egalitarian and secure society. However, this opportunity also produces an equally huge risk of failing, which would be seen as a failure of liberal government. Conservative ideology and Republican rule would come roaring back.
Success requires bold, immediate action. First and foremost, Obama must pull back the economy from the brink of depression. Only if he masters this primary challenge and points the economy toward recovery will he gain the political capital needed for the other hurdles -- from reform of collapsing health and pension systems to the long-term conversion of the energy economy.
The entire article is linked.
Showing posts with label economic policy. Show all posts
Showing posts with label economic policy. Show all posts
Saturday, December 27, 2008
Tuesday, January 8, 2008
Krugman: Bush policies never change but the arguments do!
Yesterday I wrote that President Bush proposes the same medicine, upper income tax cuts, for any economic illness.
When we had a projected $5.2 trillion surplus, he proposed upper income tax cuts because the federal government didn't need all that money.
When the 2001 recession began, President Bush said upper income tax cuts (phased in over nine years to conceal their long term cost) was the solution.
When gas prices began to rise in May, 2001, he again said the answer was upper income tax cuts.
Now that the economy is sliding into a recession, he is again arguing that we need to make his high income tax cuts permanent.
No matter what the problem, upper income tax cuts are the only solution.
Paul Krugman makes the same point in his recent column :
"You see, for 30 years American politics has been dominated by a political movement practicing Robin-Hood-in-reverse, giving unto those that hath while taking from those who don’t. And one secret of that long domination has been a remarkable flexibility in economic debate. The policies never change — but the arguments for these policies turn on a dime.
When we had a projected $5.2 trillion surplus, he proposed upper income tax cuts because the federal government didn't need all that money.
When the 2001 recession began, President Bush said upper income tax cuts (phased in over nine years to conceal their long term cost) was the solution.
When gas prices began to rise in May, 2001, he again said the answer was upper income tax cuts.
Now that the economy is sliding into a recession, he is again arguing that we need to make his high income tax cuts permanent.
No matter what the problem, upper income tax cuts are the only solution.
Paul Krugman makes the same point in his recent column :
"You see, for 30 years American politics has been dominated by a political movement practicing Robin-Hood-in-reverse, giving unto those that hath while taking from those who don’t. And one secret of that long domination has been a remarkable flexibility in economic debate. The policies never change — but the arguments for these policies turn on a dime.
The entire column is worth reading.
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