Flashback: Paul Krugman

The New Republic

You have read:

0 / 8

free articles in the past 30 days.

Already a subscriber?

Log in here

sign up for unlimited access for just $34.97Sign me up

JONATHAN COHN OCTOBER 14, 2011

Flashback: Paul Krugman

The political constraints on the Obama Administration in January, 2009, were very real. Even if the president had pushed for a much bigger stimulus, it's unlikely Congress would have passed one, at least as long as the filibuster remained in place.

Still, this excerpt from a Paul Krugman column is downright eerie:

This really does look like a plan that falls well short of what advocates of strong stimulus were hoping for — and it seems as if that was done in order to win Republican votes. Yet even if the plan gets the hoped-for 80 votes in the Senate, which seems doubtful, responsibility for the plan’s perceived failure, if it’s spun that way, will be placed on Democrats.

I see the following scenario: a weak stimulus plan, perhaps even weaker than what we’re talking about now, is crafted to win those extra GOP votes. The plan limits the rise in unemployment, but things are still pretty bad, with the rate peaking at something like 9 percent and coming down only slowly. And then Mitch McConnell says “See, government spending doesn’t work.”

Yup. The only thing Krugman got wrong was the unemployment rate. It peaked even higher, topping 10 percent. (See above.)

share this article on facebook or twitter

posted in: jonathan cohn, politics, congress, republican party, senate

print this article

SHARE YOUR THOUGHTS

Show all 10 comments

You must be a subscriber to post comments. Subscribe today.

Back to Top

SHARE HIGHLIGHT

0 CHARACTERS SELECTED

TWEET THIS

POST TO TUMBLR

SHARE ON FACEBOOK