In a world supposedly governed by 11 dimensional chess, we find unusually straight forward advice directed at the Obama Administration on how to react to the dismal unemployment numbers.
Someone just asked me, “how does the White House pivot from targeting deficits to targeting jobs?”
How’s this? “Based on new information, we are now pivoting from targeting deficits to targeting jobs!”
I interpret that to mean: Either refocus the Biden dining table chats on jobs or send everyone home before they damage the economy even further.
The White House now faces the entirely predictable problem that a critique from Obama’s possible rival, the policy chameleon, Mitt Romney, is exactly correct: The Administration has failed to achieve its stated economic policy objectives. The only part Mitt left out is that the Administration failed because they pulled their punches; they feared and listened too much to charlatans like Mitt Romney and the nonsensical views of his fellow Tea-GOPs, not to mention the deficit hysterics in his own party.
If that’s how this White House wants to govern, the American people will know whom to blame in 2012. A rational choice in a Romney versus Obama matchup would be “no.”
More from Paul Krugman: The Mistake of 2010 [aka 1937]
And Krugman/DeLong show why it could get worse.
From Calculated Risks: The Graph everyone should be following.