Krugman on Obama’s spending freeze: ‘It’s appalling on every level’




Last night, when I posted about Obama’s plan for a spending freeze, I wrote that the gimmick “just seems dangerous right now from an economic sense.” But, I wanted to hear from real economic experts like Krugman and Stiglitz.

Well, Krugman weighed in:

A spending freeze? That’s the brilliant response of the Obama team to their first serious political setback?

It’s appalling on every level.

It’s bad economics, depressing demand when the economy is still suffering from mass unemployment. Jonathan Zasloff writes that Obama seems to have decided to fire Tim Geithner and replace him with “the rotting corpse of Andrew Mellon” (Mellon was Herbert Hoover’s Treasury Secretary, who according to Hoover told him to “liquidate the workers, liquidate the farmers, purge the rottenness”.)

It’s bad long-run fiscal policy, shifting attention away from the essential need to reform health care and focusing on small change instead.

So, that answers the economic question. Very bad move.

The Obama administration is sacrificing sound fiscal policy for a short-term political gain. But, the question is whether there will be any short-term political gain. I don’t see it. This feels like the White House brain trust is grasping and it’s just not authentic. People figure that out pretty quickly — and that’s not good for a President.


On October 27, 2010, Joe was one of five bloggers who interviewed President Obama. Joe is a DC-based political consultant with over twenty-five years of experience at both the state and federal level. Joe has managed political operations and legislative efforts for both candidates and issues-based organizations. For seven years, he was the Director of State Legislation at Handgun Control, Inc. He served as that organization's first Political Director during the 2000 cycle. Joe is a graduate of the University of Maine School of Law. In addition, he has a Masters in Public Administration from Lehigh University and received his B.A. from the University of New Hampshire. Joe also has a fun dog, Petey, a worthy successor to Boomer, who got Joe through eight years of Bush and Cheney. Joe likes to think he is a world class athlete having finished the 2005 Chicago Marathon in the time of 4:10. He has completed six other marathons as well -- and is still determined to break the four hour mark.

Share This Post

© 2021 AMERICAblog Media, LLC. All rights reserved. · Entries RSS