Zippidy Doo Da

I'm not stupid, I'm from Texas!

Monday, November 09, 2009

Crooks and Liars’ Blogroll had this letter to Atlantic Monthly’s James Fallows:

"I'm really confused by how the Obama administration has handled the narrative and voter expectations for this recession. I clearly understand that they had to carefully balance early 2009 dire warnings against economic pessimism, while making a case for the stimulus package, etc. But once the stimulus was passed, I believe that they should have boldly stated how bad things really were, how their economic policies were the correct choices (even acknowledging Krugman's critiques of "too little"), and emphasizing that even the best possible management of the 2008 economic trainwreck would see significantly increasing unemployment as a lagging indicator.

"One analogy I've thought of often, aligned with your interests, is an economic analogy of an aerodynamic stall. When commerical credit froze and consumers reduced spending, the prevailing economic "lift" was gone. Stall! Conservative knee-jerk reactions for tax cuts were the equivalent of "pulling up" on the stick- intuitive but deadly. Obama's expert advice was to gain speed by spending (diving), even at the cost of altitude (deficit/debt). High unemployment was destined from the moment the stall occurred. Only when sufficient airspeed/angle of attack (spending) had been reached could the economy begin to pull up, and the unemployment would be analogous to the altitude lost even after the decision to finaly "pull up" had been made. Passenger relief (consumer confidence) would follow long after the immediate recovery (i.e., GDP), and no one would be "satisfied" until the plane came in for a (economic) "soft landing."

"There are probably numerous logical errors with this analogy [JF note: seems pretty good to me], but the simple point is this: If "Joe six-pack" clearly understands that Obama saved his economic life, while Conservatives would have driven the plane into the ground, he's more likely to appreciate and reward the unpalatable choices that Obama made. His appreciation would be enhanced if he understood all along that the pilot had no choice but to lose altitude, and the pilot explained that altitude (jobs) would take a long time to regain. This administration sorely needs a narrative that citizens can grasp and accept, otherwise the cynical partisan naysayers will continue to fill the void....”


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