Krugman:
Mr. Obama had this to say about the economics of the budget: “Government has to start living within its means, just like families do. We have to cut the spending we can’t afford so we can put the economy on sounder footing, and give our businesses the confidence they need to grow and create jobs.”
That’s three of the right’s favorite economic fallacies in just two sentences. No, the government shouldn’t budget the way families do; on the contrary, trying to balance the budget in times of economic distress is a recipe for deepening the slump. Spending cuts right now wouldn’t “put the economy on sounder footing.” They would reduce growth and raise unemployment. And last but not least, businesses aren’t holding back because they lack confidence in government policies; they’re holding back because they don’t have enough customers — a problem that would be made worse, not better, by short-term spending cuts.
Whether Obama believes this or not, that is his policy now. Apparently he has decided this approach is the best way for him to win reelection. What is a progressive or liberal to do? Stop counting on President Obama. He is not your policy ally with regard to economic policy. You want to stop him on economic policy. Time to wake up. As Krugman notes:
Which raises the big question: If a debt deal does emerge, and it overwhelmingly reflects conservative priorities and ideology, should Democrats in Congress vote for it?
Mr. Obama’s people will no doubt argue that their fellow party members should trust him, that whatever deal emerges was the best he could get. But it’s hard to see why a president who has gone out of his way to echo Republican rhetoric and endorse false conservative views deserves that kind of trust.
Let me add this final thought - opposing the President on economic policy at this time does not mean not supporting him for reelection. Indeed, there is no choice in the matter even in terms of economic policy - as bad as Obama is right now on economic policy, he will be better than the GOP alternative. But supporting the President for reelection does not mean supporting his suicidal economic policy now. Urging Democrats in Congress to not support the President's economic policy is the right thing to do. And they might even listen.