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Wednesday, August 10, 2011

Going negative, forget the economy

Our economic situation shows no sign of improving, and in fact is more likely to deteriorate given shrinking state revenues and Federal austerity. But at least the White House has recognized reality, though their strategy to cope politically leaves much to be desired. Here's Robert Reich, via Krugman:

So rather than fight for a bold jobs plan, the White House has apparently decided it’s politically wiser to continue fighting about the deficit. The idea is to keep the public focused on the deficit drama – to convince them their current economic woes have something to do with it, decry Washington’s paralysis over fixing it, and then claim victory over whatever outcome emerges from the process recently negotiated to fix it. They hope all this will distract the public’s attention from the President’s failure to do anything about continuing high unemployment and economic anemia.
This strategy aligns well with their Romney strategy:
“Unless things change and Obama can run on accomplishments, he will have to kill Romney,” said a prominent Democratic strategist aligned with the White House.

The onslaught would have two aspects. The first is personal: Obama’s reelection campaign will portray the public Romney as inauthentic, unprincipled and, in a word used repeatedly by Obama’s advisers in about a dozen interviews, “weird.”
Unfortunately it means there is no chance the White House will do anything to improve the economic situation of most Americans.

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