This week, the Obama administration has made a switch on its stance on dealing with the deficit. Whereas they previously had been tackling the problem with a conservative approach of spending less money, they are now discussing moving more towards the Keynesian approach of spending more money to spur the economy into growth.
Gerald Seib writes this week in the Wall Street Journal (link below), "There are obvious political reasons to shift the conversation to growth. Simply put, both stimulus and deficit-fighting have become politically problematic." Though economists might say that Obama's stimulus plans have provided relief from this recession, voters aren't convinced. And of course this presidency wants what every first-term administration wants - a second term.
Mr. Obama is pursuing this new strategy by increasing spending on solar energy plants and also by renewing efforts to increase overseas trade with China, Russia and South Korea. Only time will tell if this new strategy helps either to alleviate the recession or to get Mr. Obama re-elected.
Gerald F. Seib's Article, Tapping Reagan's Growth Theme.
No comments:
Post a Comment