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The Whitehouse's economic policy isn't and hasn't been working. Conventional wisdom blames the stimulus and traditional Democratic approaches to the economy. But it would be more accurate and better for Democrats if we blamed Obama's appointment of two Republicans -- Bernanke and Geithner -- into his top two economic posts.

Bernanke was registered as a Republican when he was appt.ed to chair the Fed, which is one of, if not THE, most important economic offices in the country. He's been extremely slow to respond to weak economic news, overly rosy about the economy's prospects, and tepid with targeting inflation rates and pursuing them.

Many have said that aggressive monetary policy wasn't likely to do much in a liquidity trap, but one thing is for certain. We'll never know given that we've had a Republican running the Fed.

Geithner was a registered Republican up until '06. Then, when Democrats suddenly became ascendent, he coincidentally switched to being an independent. Anyone would be justified in viewing that as a career move.

In any case, according to NYT reporting he holds essentially Republican views on the economy. He doesn't believe in stimulus or Keynesianism, and he credits the 90s boom largely to the deficit reduction deal between the House GOP and Clinton. If he quacks like a duck, waddles like a duck, he's a duck.

In addition, Geithner the Republican has also been the dominant voice setting economic policy inside the admin. these past two years. Republicans in top positions at the WH explains a multi-year obsession on deficit reduction and spending cuts by a D admin., despite 9% unemployment, high oil, and risky exposure to the European banking crisis.

Having followed Obama's Republicans' lead for more than two years the recovery has failed to take hold and the economy is stalled and will likely remain so. This is the lesson every Democrat should be internalizing and distributing.


On the economy, Democrats need to:

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| 7 votes | Vote | Results

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Comment Preferences

  •  Obama Nominated Serial Tax Cheat Tim Geithner (1+ / 0-)
    Recommended by:

    to be Treasury Secretary when he could have nominated Nobel Prize-winning economist and Princeton economics professor Paul Krug or MIT economist Simon Johnson bu didn't.

    The fact that Timothy Geithner failed to even bother filing income tax returns from 2000-2008 during the George W. Bush years while he was the President of the NY Federal Reserve Bank and the Assistant Secretary of the Treasury under Bush/Cheney's Treasury Secretary Neocon Henry Paulson showed amazingly piss poor judgment on Obama's part.

    Instead of withdrawing the nomination of Geithner and naming somebody with integrity, Neocon Obama insisted on putting a serial tax cheat neocon in charge of the US Treasury.

    Obama must have never read anything about Herbert Hoover's presidency or FDR's presidency and the Great Depression of the 1930s in any history course he ever had or he would know how Hoover's AUSTERITY put us so deep in economic trouble and how FDR almost repeated the same mistake in 1937.

    Barack Hoover Obama learned nothing from history and is doomed to repeat it as a result, or it may be a deliberate move on his part to appease the GREEDY Oligarchs in return for wealth for perpetuity for himself, his wife, and his daughters.

    •  There's much that could be said against Geithner (1+ / 0-)
      Recommended by:

      One thing that's hardly ever said is that he's essentially a Republican.

      Democrats are going to need to distance themselves from the economy. Part of that is painting congressional Rs as obstructionist.

      THis diary is also advocating blaming the excessive bipartisanship that lead to R leaders on the economy in a D admin.

  •  There Are Only two Possibilities Here (0+ / 0-)

    Either the administration are monumentally incompetent and were fooled into thinking that Summers and Geithner had suddenly changed philosophies and converted to fact rather than kleptocratic greed based economic viewpoints or they knew what they were doing and never intended not to seamlessly continue the failed Bush Republican economic policies.

    We need a new team.  Badly. Very, very badly either way.

    Four more years of Bush-Obama economic policies will be a disaster.  One any credible economist could have predicted four years ago.  

    •  Summers doesn't come out looking as bad (0+ / 0-)

      given recent reporting. Plus he's been advocating lately for more stimulus and criticizing the deficit focus.

      It's Geithner who appears to have the ear of POTUS and is still at his post.

      I agree many economists saw serious risks and now the question is who gets the blame.

      We could rail against Obama, and he does deserve pressure from the left. But the goal is to salvage the D brand and traditional economic philosophy. Separating Obama from that in the eyes of many is going to be difficult. Lookit this site and the extreme loyalty.

      So I'm advocating blaming the Rs in his admin., who should also bear responsibility.

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