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Angry Bear poster asks some good questions about Obama statements in last night's speech

Very good indeed. See if you agree.

Divorced One Like Bush addresses charter schools, SocSec and those "tax-free" universal savings accounts" (whatever those are), promising to get all fiscal conservative before he knows whether his stimulus attempts actually work.


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pie's picture
Submitted by pie on

are worth a read, but I can't finish them now. Thanks for the post. As I read different blogs today, I noticed that many people were concerned about certain aspects of that speech last night.

Submitted by jawbone on

Good politics? Maybe, maybe not. Good economics? Time will tell.

The President's message on fiscal responsibility -- that he'll cut the current one by half by the end of his first term -- is smart politics right now, but it may be dumb politics by November of 2012, and doesn't make much economic sense regardless.

We're in a deepening recession, in case you hadn't noticed. The biggest challenge is to ramp up aggregate demand. Yes, we have to borrow lots from the Chinese and Japanese to do this, and, yes, it's costly in terms of additional interest payments to them. But there's no choice. In fact, if the slump gets worse -- and I have every reason to fear it will because that's the direction we're heading in as fast as you can imagine -- we'll probably have to have a second stimulus. And if the second isn't enough, a third. And so on. FDR's biggest mistake was doing too little until World War II. (No one should interpret this as a recommendation for more military spending -- I'm just saying Obama will probably have to think and do much bigger than the $787 billion stimulus so far.)