Here’s how one economist responded to President Obama’s idea of a spending freeze, which is likely to be a major topic of his State of the Union speech.
A spending freeze? That’s the brilliant response of the Obama team to their first serious political setback?
It’s appalling on every level.
It’s bad economics, depressing demand when the economy is still suffering from mass unemployment. Jonathan Zasloff writes that Obama seems to have decided to fire Tim Geithner and replace him with “the rotting corpse of Andrew Mellon” (Mellon was Herbert Hoover’s Treasury Secretary, who according to Hoover told him to “liquidate the workers, liquidate the farmers, purge the rottenness”.)
That economist is Princeton professor Paul Krugman, winner of the 2008 Nobel Prize in Economics.
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