Paul Krugman points us to this post by Jonathan Cohn at the New Republic about the mixed-bag internal deliberations at the White House about what to do next for the economy. It's nothing to write home about:
Reading between the lines, and based on what I’ve gleaned from some (mostly) informed sources, the argument is in some ways semantic. Yes, the White House is looking at initiatives that could both boost the economy. But while it’d prefer a bigger plan, focused more on infrastructure spending and aid to the states, Congress has no appetite for that. So it’s focusing on other, lesser measures that might have a shot. In a series of speeches and events next week, President Obama will propose and argue for these initiatives.Cripes. Krugman comments:
The White House doesn’t want to call the new package a “stimulus,” because the very term has become politically toxic. But the point of the initiative is to stimulate the economy--which means, technically speaking, it would be a stimulus, although probably a very small one. (I’m hearing the Post’s sources were wrong to say “hundreds” of billions of dollars, as in more than one hundred billion, although it’s always possible it’s my sources who are wrong about that.)
Jon Cohn’s post about what the administration may be considering, and what it isn’t considering, makes we want to cry. ...Lemmings. Very cocky ones.
[W]hen you’re well down in the polls, minimal steps that won’t move the economy and won’t grab voters’ imagination are just a way of guaranteeing a devastating defeat.
I can understand why the people who persuaded Obama to go for the capillaries might still be claiming that they have the right strategy; but I don’t understand why Obama is still listening to them.
GP
