In his weekly radio address, the President provided a broad defense of several domestic policies and addressed the criticisms this week that his economic stimulus was not working, or working fast/well enough.
In an earlier post, I summarized the arguments being made by Republicans, which are disingenous, and the more important arguments being made by prominent economists. You’ll find several links to articles/posts by those economists there.
The President responds to the Republicans, but he ignores the more important economists’ concerns.
Krugman, Galbraith, Stiglitz, DeLong, Baker et al agree the stimulus takes time and that re-employment always lags "recovery," but a major point the President’s statement ignores is that the loss in consumption is vastly greater than the stimulus can fill, even if it works exactly as planned.
And then there’s this:
Obama’s advisers understand the economists’ arguments, and the fact that they wrote a speech for Obama that ignores them is not encouraging.
In the meantime . . . lots of Americans are in for a very long, difficult time.