Thursday, September 2, 2010

Clueless

Christina Romer, the soon to be ex-member of President Obama's economic team revealed some disturbing details last night in a speech to the National Press Club. Of course she gives the usual line that they didn't know how serious the recession was. That's just ridiculous, I think we all knew it was a colossal meltdown on multiple levels. Deeper impact than recent blowups was apparent early on. So I am supposed to believe this, from the WaPo:
It wasn't the food; it was the entertainment. Christina Romer, chairman of President Obama's Council of Economic Advisers, was giving what was billed as her "valedictory" before she returns to teach at Berkeley, and she used the swan song to establish four points, each more unnerving than the last:

She had no idea how bad the economic collapse would be. She still doesn't understand exactly why it was so bad. The response to the collapse was inadequate. And she doesn't have much of an idea about how to fix things.
This just follows the pattern that they are a clueless bunch with no idea how to encourage economic growth. Their strict adherence to Keynesian stimulus provided the sugar rush last year temporarily but as discussed before that is no basis for long term growth. Re-stocking the shelves, which is all the government can do, is not an economic policy. It doesn't create demand or jobs in the slightest, understand why here, here and here. Keynesian multipliers are a sham.

Considering where this administration is headed I would not be surprised that Obama, the true believer that he is, replaces Romer with someone who wants to continue down this road contrary to evidence that it will never work.

1 comments:

Free Market Economics Fan said...

It really is a shame. Had we let the recession of 08 happen instead of bailing out the bankers and kicking the can down the road we would be most likely out of it by now. Instead we are trillions more in debt with nothing to show for it.

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