What passes for economic analysis in the Obama White House

On the one hand, the administration can push for policies that they don't believe will help, but which they think will look good politically. On the other hand, the administration can push for policies where they micro manage the types of investments that companies make. From the New York Times:

Mr. Obama’s senior adviser, David Plouffe, and his chief of staff, William M. Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact. These include free trade agreements and improved patent protections for inventors.

But others, including Gene Sperling, Mr. Obama’s chief economic adviser, say public anger over the debt ceiling debate has weakened Republicans and created an opening for bigger ideas like tax incentives for businesses that hire more workers, according to Congressional Democrats who share that view. Democrats are also pushing the White House to help homeowners facing foreclosure.

Even if the ideas cannot pass Congress, they say, the president would gain a campaign issue by pushing for them. . . .

I love the way that the New York Times summarizes the beliefs of economists. Does anyone really believe that the NY Times is accurately stating this?

A wide range of economists say the administration should call for a new round of stimulus spending, as prescribed by mainstream economic theory, to create jobs and promote growth. It is clear that the House would never pass such a plan. . . .

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Blogger Chas said...

"A wide range of economists..."

Shouldn't that be, "A narrow range of liberal economists..."? It seems that the NYT can’t see the forest for the liberal trees, which it assumes to be the forest.

"...as prescribed by mainstream economic theory..."

Keynes is still “mainstream” after this debacle? I thought he was now "discredited" at this point.

The NYT is delusional and living in the past, however, I have no expectation that will change after their imaginary, Marxist world view is in tatters after 2012.

8/15/2011 3:53 PM  

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