Obamanomics

The country is saddled with nearly double-digit unemployment, so how does Obama plan to stimulate demand?  By restricting middle-class income via a pay freeze for federal coworkers.  Absolutely brilliant.  Even better, the President continues to promote the right-wing false narrative that says we must cut public spending in the midst of a severe recession.  Obama’s most egregious line during yesterday’s press conference likely made Keynes rollover in his grave:

“After all, small businesses and families are tightening their belts. Their government should, too.”

Herbert Hoover would be proud.

What is Obama thinking?  This is just flat out stupid, both in terms of economics and politics.

Krugman writes:

Yep, that’s exactly what we needed: a transparently cynical policy gesture, trivial in scale but misguided in direction, and in effect conceding that your bitter political opponents have the right idea.