According to Senior White House adviser David Axelrod, there isn’t “a great appetite” for the government to spend more money to stimulate the seriously flagging economy. Inexplicably, Axelrod believes the Republican remedy of tax cuts will boost economic activity saying:
“Even though there is some argument for additional spending in the
short-run to continue to generate economic activity. There’s not a great appetite for it, but I do think we can get
additional tax relief for small businesses – that’s what we want to do –
additional lending for small businesses.”
I’m hoping the Obama Administration understands that this isn’t a serious prescription for economic growth and recovery. The government has been hijacked by the ‘austerity at all costs’ Republican/Democrat coalition, and the economy is suffering as a result. This all despite the evidence that we were not as risk of a lending crisis if the government had borrowed more money to stimulate the economy. Writes Krugman:
The guys who got it all wrong are winning the political argument, in
large part because the Obama administration went for half-measures, and
is now being punished for a weak economy — which people like me
predicted would happen.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.