A Pre-Recession Mindset
About a month ago, the New York Times' Frank Rich, commenting on the Republican Party's approach to the economy, said, "The nightmare is that we have so irrelevant, clownish and childish an opposition party at a moment when America is in an all-hands-on-deck emergency that's as trying as war."
As "trying as war" strikes me as the key point that seems to go overlooked. The ongoing crisis is, by most measures, the economic equivalent of a 9/11-style terrorist attack. "Everything changed" in September 2001? Everything should change now.
Except there's ample evidence that helps prove just how little has actually changed, at least in the minds of some policymakers.
President Barack Obama's economic advisers are increasingly concerned about the U.S. Senate's delay in confirming the nominations of Austan Goolsbee and Cecilia Rouse to the White House Council of Economic Advisers.
Without Senate confirmation, the two economists are barred from advising the president as the administration tackles the worst financial crisis in 70 years and tries to advance the spending plan Obama submitted to Congress last week.
"It's frustrating," said Christina Romer, who heads the three-member CEA. "These are hard economic times and we desperately want to get them through the Senate and definitely on the job."
"They are both superb economists," she said. "I can't imagine what the holdup is."
The holdup, alas, is not a mystery. Goolsbee and Rouse were poised to be confirmed by the Senate on Jan. 20. Senate Republicans delayed the committee process, and have pushed off confirmation. Apparently, the GOP believes anonymous holds and delaying tactics are warranted because, as they see it, some of Bush's nominees for the White House Council of Economic Advisers were mistreated by Senate Democrats.
Everyone agrees that Goolsbee and Rouse are qualified and ready to get to work, but Republicans are looking for some cheap payback.
Democrats were (falsely) accused in recent years of having a "pre-9/11 mindset." It's time the political world comes to terms with the fact that Republicans are guilty of a "pre-recession mindset."
Imagine if, in late 2001, George W. Bush were putting together a team of national security advisors, and Senate Democrats put anonymous holds on his well-qualified choices because of something that may or may not have happened during Clinton's presidency. Most political observers would consider this crazy, and they'd be right.
And yet, here we are.
Republicans are pushing the same tax cuts they wanted before the recession. They're making the same arguments about spending they offered before the recession. They're engaged in the same petty games they enjoyed before the recession. In the midst of "an all-hands-on-deck emergency that's as trying as war," and in "the throes of a catastrophic economic crisis," the failed minority party, ignoring the election results, public opinion, and everything we know about economics, have the same approach to the economy that they had at this point a year ago. And the year before that. And the year before that.
Under the circumstances, we can't afford a pre-recession mindset.
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Who was derelict in their duty or treasonous in their actions on 911? The GOP Republicans were on watch that day pal. Treason is the reason for this bad financial season.
Don't you mean Pre-Depression?
I'm a democrat but I tend to believe that we can't spend our way out of this recession. President Bush and a Republican controlled congress spent us into this mess. They had some help along the way from former Presidents Clinton, Bush I and Reagan who all added their own deregulation(s). Senator McCain spoke about free markets, globalisation and cutting the capital gains tax throughout the election. I'm sorry to say that free trade seems to help other countries and damage our own. Cutting the capital gains tax is only going to encourage more people to reinvest in firms that our sending their production, call centers, etc. overseas. So sure, it increases the investors wealth but it never trickles back down. (Not that any capital gains are being made right now anyhow).
Personally, I like the idea of spending on green technologies. I also like the idea of mass train transit across the country (European style).
The stimulus bill should be the governments last shot at solving this crisis. Some would say, and I wouldn't aruge, that the government already did all they really can by lowering interest rates and increasing the money supply. The reason that President Bush failed was that he somehow thought cutting taxes and increasing spending was a good idea. Would anyone here quit there job and then go max out their credit card? It doesn't make much sense but it's tantamount to the actions of the previous administration.
Most leading and Nobel prize winning economists strongly support Federal stimulus spending at this point; you know better then they?
the spending has to be more targeted, and they must abandon the idea that bank nationalization is a bad idea.
Um, let's see -- a pre-911 mindset? How about a pre-Florida 2000 vote-fraud mindset -- the economy being straightened out, the President intelligent enough to keep up with the rest of the world, a budget surplus, and the worst disaster on US soil the result of those home-grown nut-jobs in Kansas City...?
The US as a country able to defend itself against outside attack is actually a pretty d@mn good mindset, when you think about it.
Why were no government officials allowed to fly after Bush received the august 15 memo? Why did Dick Cheney order all East Coast air defense scrambled for War Games on the 11th of September, leaving New York and DC undefended?
We need a special prosecutor for treason and war crimes.
they have the same ideas as yesterday and the year before, true.
those ideas aren't necessarily bad ones, but tax cuts without DRASTIC spending cuts will screw us. Cutting a few earmarks, i'm afraid, isn't good enough.
if republicans want their tax cuts to actually work. we need to end our empire, like, tomorrow. democrats OR republicans aren't willing to do that, so our only option left is big spending.
Cutting taxes, shrinking government services gives us a society where the food can kill you because there are no government inspectors and Wall St. gambles away all our money because there is no one there to regulate them. So, obviously low/no taxes and no government are the way to go if you want to create a failed society.
you dont have to sacrifice necessary regulation to cut down our budget.
our spending is out of control, and its not because of our regulatory agencies.
THis isn't something new, it's got quite a history. In 1981, Stockman got his tax cuts, but, despite all his efforts, he could not control expenditures. The budget soared and, to make it even worse, President Reagan insisted on a huge increase in the Pentagon budget (some things seem to never change) which guaranteed a deep deficit in the coming years. So, Stockman devised what he called the "magic asterisk," that blithely denote[d that] all of the future deficit problems..
Wow well said; that's it in a nutshell and it's obvious who the nuts are.
Kudos for a great article! Well done.
I must reply to this. I think the democrats are so excited because, after 30 years, they have complete control of Congress and the WH. They are throwing in all the pork projects they have wanted for all that time and it is wrong and absolutely ridiculous. Obama campaigned for a "change". Well, this is not what the American people wanted!!! And, this financial crisis is not just the fault ob Bush; just ask Chris Dodd, Rangel, and a whole lot more. They knew about Fannie Mae many years ago and did NOTHING!! Let"s stop the blame game and hope that Obama and turn this around. Also, stop the "Bush bashing" ENOUGH IS ENOUGH!!!!!
Ugh!!! Stop trying to shift reality - the vast majority of the American people disagree with you; and like a Righty, if it's one of u vs many of them, well, them are just wrong because it can't be you.
The Repubs are like a gambling addict at the roulette wheel who have just gone bust after a HUGE run of luck - total denial and chasing the buzz; careful, they are mean when they are losing.
Republicans are traitors.
That's kind of unfair to traitors, don't you think?
That implies they were actually loyal to us at some point.
Enough with this all sugar coating of Republicans.
Lack of fiscal constraint by President Bush and Republicans in Congress during 8 year President Bush term and their push for massive deregulation caused many of our current problems with a doubling of the national debt in 8 years, massive bank failures, collapse of the housing market , and financial meltdown. Congress and President Bush had been stealing over $200 billion a year from the surplus Social Security funds to pay for other projects and to help reduce the huge deficits in the annual budgets with no intention of ever paying this money back. And we wonder why Social Security will go broke!. We have already sold away our Children’s and Grand Children’s future with these massive deficit spending by President Bush and President Obama. Throw President Obama’s pledge for bi-partianship and “pay as you go” out the window.
The ill-conceived Simulus package was crafted by Rep Pelosi with almost zero input from any Republicans. The stimulus package had a lot of pork and special projects that had no business being in the stimulus package. Although, we need to provide a stimulus package to spur job growth, repair/expand infrastructure, and promote energy independence from foreign oil., the gross lack of fiscal contraint practiced by President Obama will lead to doubling of the national debt in 4 years. The lack of a credible energy independence policy and economic policy could end up sending us into the first depression since the Great Depression.
"The ill-conceived ..." because you have seen the future? or because you are reading from RNC talking points. "... zero input from Repubs ..." let the guy who got lost back behind the wheel? All the Repubs called for was more tax cuts - that would benefit the guys who got the big bonuses with public money. And on and on with the obvious spin in your post.
Who do you think keeps the economy going - small businesses and thr "rich" as you call them. They put money back into the economy. They also pay the majority of our taxes as well. Obama wants to distribute our money to everyone. No, that is Socialism!!! What I work hard for and pay my taxes on, I do not want to give it to the ones who pay no taxes. Let them work and earn their money. Jobs are there for everyone, if they try.
The stimulus package contained no pork or earmarks. The omnibus bill is a different story, loaded with pork and earmarks. Most of the 'pork and earmarks' came from the Republicans. Don't believe me? Do some research before you spout off. All your doing is a dis-service to your 'children and grandchildren' when you do not speak the truth.
the onmibus was handled horribly.
40% of the earmarks were repub, 60% dem. When the repubs were in power, it was the opposite.
Obama should have said - cut the earmarks or I will veto..
Robo A couple of points for you to ponder First,the gov't is bigger now than two months ago.Now,I'
1)The inflation rate and the defict are both higher in the next 3 years.
2)The Obama administration will use the power of the gov't to try to hold power.(By that ,I mean card check to push workers into becoming dues paying chattels,trying to use fairness arguments to ensure opposing views are neutered,and trying to push gov't bailouts towards allies.
The Democrats are in the unenviable position of having control of the governmental levers and not being competent to fly the jet.And,so
It sounds like YOU'RE the one who's not going to be having any fun, these next four years...
Still blaming the GOP? Bush averaged $1 trillion a year during his rein and started two illegal wars -- what do we have to show for it? Exactly the predicament we are in now, that's what.
Blaming the GOP for eight years of GOP mismanagement, treason, lies and war crimes?
Why would ANYBODY blame those poor babies?
Ladies and gentlemen, behold: An increasingly common species: the whinetroll.
I don't know a thing about Mr Benen.I'm going to go on a limb and say I suspect he's a Liberal Arts major
Abnout 6 months ago,when I became convinced Barry O was going to b.Should I apologize for being prescient?e our next president,I got out of the market.Now for som specific comments
Cucu-the"Markets'" is an aggregate term for the judgement of millions of individuals aabout their specific economic future.It/
Run in circles,sceam and shout."
Lizt-some of us might conclude the president is giving excuses.Ho
I bet you have no idea what the dow jones average is. So spare me your uniformed logic. You want to talk about the market predicting economic activity, just look at the failures. Prior to this downturn in 2007 the dow was at 14,000, prior to the dot com bust, the Nasdaq was at 5,000. Tell me how those numbers predicted disaster? Prior to the explosion of the internet the dow was at 3,000, prior to the p.c the dow was at 1200. Please show me a time in history where the DOW predicted a downturn or growth. I have not seen it in my reading.
So you got out of the market around 8000... down from 14,000? Nice job locking in your losses, Sherlock.
It's in the character of the Republican party to ignore reality and listen to only what they want to hear; they've done it over the last eight years. While they try to blame Bush for being too liberal in his policies, the reality is that they enthusiastically cheered him on.
So here we are. An emergency, and the ones in the senate and congress are pretending there is no problem. People like Schwarzenegger, by contrast, are Governors with actual direct management responsibilities that don't have the luxury of sitting around with their thumb up their ass and hoping that things improve all on their own if 'gubmint don't go in and mess it up like they always do.'
Somehow, there's this thought that Reagan-esque 'less government' means standing back and letting everything collapse..
Tax increases and big goverment spending are the ticket to ending the recession. The markets have really responded well to this plan. But hey, continue to bash the powerless GOP to divert attention from the fact that President Obama doesn't have a clue about what to do to fix the economy other than to cram the big govt down our throats.
Sorry, dude, you're so wrong.
bullseye accurate
Those who do not know history are doomed to repeat it. The Republicans actions are a repeat of the Hoover administrations actions which led to the Great Depression. This mess took years of bad decisions by Republicans yet you want President Obama to cure it in under 6 weeks. I'm willing to bet you are also a person who believes the ads for extreme weight loss in one week.
President Obama has been very clear that the worst is still coming and that it may take one or two years to turn this mess around. He has high poll numbers because Americans understand this and support his actions.
The government was never bigger than under republican rule... go figure, republicans would never admit the truths that stare us all in the face. Of course, as long as it's a republican government spying on the people, lying to the people, handing out no bid, bloated contracts, (whats the difference between calling a corporation Government or non government when the bill is paid for with tax money? Same thing, different in name only), invading and occupying countries for the profit of big business, keeping health management in the hands of for profit corps, creating a police state with a "drug war", killing thousands of innocents to get one "bad guy", poisoning the environment with weapons that leave toxic residue for future generations to sicken and die from, poisoning the environment to fight "illegal" drugs, (how many millions of tons of toxic chemicals have been sprayed on South American countries, let alone the agent orange dumped on Vietnam, which goes on killing)? On and on, but hey thats OK... Just don't let anybody talk of actually doing something positive for people... Gasp... that would be socialism!!!!
Einstein what has the GOP done to help the situation they started?
They must want to be the party of irrelevance. They don't seem to understand that the American people are not going to forget their obstructionist ways. We have the Internet and YouTube to keep reminding the Americans what they have been doing since the election.
They are totally accustomed to getting away with all of their lies...
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