And that gets us to politics. 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.The big problem with Democrats is that they simply don't run roughshod over the Republicans, and do what needs to be done.
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.”
And, of course, when Krugman is right again, the right wing will pin the blame for the economic conditions squarely on Obama.. screeching about "Socialism"
I suppose the foreclosure business will be good for a good long while.
/update
Krugman also reminds us of what would have happened if the Republican plan to "privatize" Social Security had passed.. as it was done in Italy.
The market collapse would have collapsed Social Security. I suspect that was the idea behind the plan all along though, as the right wing despises all forms of "entitlements".
Always wrong.. all of the time.
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