New America Foundation: "the Obama administration is sinking under failure of its economic policy"

[Better Believe It]

Deaf to History's Rhyme
Why Obama is Failing
By THOMAS I. PALLEY
Thomas Palley is an Associate in the Economic Growth Program at the New America Foundation.


In 2008 President Obama captured the nation with a message of change, yet in office he has chosen to deliver change of style rather than change of substance. At the headline level this choice was reflected in his call for bi-partisanship that looked to split the difference with Republicans. In economic policy, it was reflected in the wholesale reappointment of the Clinton administration team led by Larry Summers and Timothy Geithner, a case of continuity not change.

Now, the administration is sinking under failure of its economic policy. That failure is due to its attempt to revive a 1990s paradigm that never worked as advertised and can only deliver stagnation. Painful though it is for Democrats to acknowledge, the reality is the economic policies of President Clinton were largely the same as those of President Bush. On this the record is clear for those willing to see. The Clinton administration pushed financial deregulation; twice reappointed Alan Greenspan; promoted corporate globalization through NAFTA and China PNTR; initiated the strong dollar policy; spoke of the “end of the era of big government”; contemplated privatization of Social Security; and struck down a core element of the New Deal by ending the right to welfare.

President Obama’s fateful decision to go with Clintonomics meant the recession was interpreted as an extremely deep downturn rather than a crisis signaling the bankruptcy of the neoliberal paradigm that has ruled both Republicans and Democrats for thirty years. That implied the recession could be fully addressed with stimulus, which was the same response as the Bush administration to the recession of 2001.

These are not normal times. If the administration persists with its deafness to history it will surely hit the rocks and an historical opportunity for progressive change will be squandered. Worse yet, its deafness will leave the field open to the extreme right whose “blame-the-victim” social message and “liquidationist-austerity” economic policies clearly confirm today’s rhyme is with the history of the 1930s.

Read the full article at:

http://growth.newamerica.net/publications/articles/2010/deaf_to_history_s_rhyme_why_president_obama_is_failing_40892

[rocktivity]

1. What do you mean HIS economic policy?

It was the Republicans who invented it!

:headbang:
rocktivity

[yourout]

2. In large the part the Silicon Valley bubble saved Clintons butt.

But it was just a bubble and the damage that NAFTA brought us may never be reversed.

[Better Believe It]

3. The author agrees with that assessment writing ....

" Differences in outcomes were not policy driven but reflect the fact the Clinton administration enjoyed the good fortune of the internet investment bubble. It also benefited from the beginning of the housing bubble when American families had plenty of untapped home equity and credit".

[yourout]

4. And now we have no were to turn. Tapped out and unemployed middle class will lead....

to collapsing into a third world country.

Serfs and the Lords.

[ProSense]

5. Don't agree with this

The main difference between the Clinton and Bush administrations was the former’s willingness to offer some helping-hand policies to cushion the harsh effects of the invisible hand. Differences in outcomes were not policy driven but reflect the fact the Clinton administration enjoyed the good fortune of the internet investment bubble. It also benefited from the beginning of the housing bubble when American families had plenty of untapped home equity and credit.

President Obama’s fateful decision to go with Clintonomics meant the recession was interpreted as an extremely deep downturn rather than a crisis signaling the bankruptcy of the neoliberal paradigm that has ruled both Republicans and Democrats for 30 years. That implied the recession could be fully addressed with stimulus, which was the same response as the Bush administration to the recession of 2001.

More targeted stimulus is what was needed.

[provis99]

6. you know what Republicans will say, then.

Keynesian stimulus spending is a failure; to improve the economy, we need to cut the taxes of billionaires.