It’s self-defeating to be
bitter before the fight is lost. Paul Krugman compounds that danger by being
prolific.
Along with Robin Wells,
Krugman wrote in The New York Review of Books a sympathetic review of three bitter books about Barack Obama,
Wall Street, and the Republican Party.
Here’s Krugman's retrospective
on how Obama made decisions during the crisis-filled early days of his
presidency:
“True, not all members of the team got it wrong. We now know
in particular that Christina Romer, the Berkeley professor appointed to head
Obama’s Council of Economic Advisers, called from the beginning for a much
larger economic stimulus than the administration ever proposed. But Romer was
sidelined and it was Larry Summers—a person not shy about displaying his brilliance—who
had Obama’s ear. In principle, that needn’t have made much difference; when
wearing his academic hat, Summers espouses Keynesian economic views not
noticeably different from Romer’s (or ours). But Summers, rather than passing
on straight economic analysis, tried to show his political astuteness about
what Congress would accept, and as a result underplayed the case for a bigger
stimulus.”
Krugman doesn’t point out that not one advisor
or school of economic opinion knew, in fact, how deep the recession was until
well after the recovery package was passed into law. Nor does he say that
Romer’s bigger package could have been
enacted.
Instead, Krugman endorses the
pop-psychological notion that Obama’s favored "all-star team” was assembled to
give him the intellectual affirmation that he “craved.”
There’s something deeply unfair about all
this.
Americans also “craved” an all-star
team.
Obama’s task was to save a sinking
economy. He wasn’t elected to fix morale in the Executive Branch or the White
House—or spend his time finding out who’d screwed up.
According to Krugman and the books he
reviewed, America was in a terrible mess because of stupid populist Republican
decisions over the previous eight years.
So, what does the new president do? What
was his fatal mistake? He listened to Larry Summers—a man who displayed his
brilliance. In a crisis that absolutely required a divided Congress to quickly
agree to explode the size of the federal deficit, Obama was swayed by political
astuteness.
Indeed.
Too bad Obama didn’t know that the
recession was three times deeper than the statisticians thought. Too bad he
didn’t have the freedom to decide when to fight it. However, in an economic
emergency or in a war, the nicest leaders must pick the option that’s doable
and go with the most brilliant, plausible advise available.
Let the losers write the quickies.
No comments:
Post a Comment