Stimulus Not Big Enough to Save Us: Krugman

Obama's economic policy is falling behind the curve

By Kevin Spak,  Newser Staff

Posted Mar 9, 2009 9:53 AM CDT

(Newser) – Pundits are constantly complaining that Barack Obama’s stimulus is too big and too ambitious, but Paul Krugman has a different complaint: It’s too small. Obama’s promise that the bill will create or save 3.5 million jobs by 2010 “looks underwhelming to say the least,” given that the economy is already down 4.4 million jobs, and losing another 600,000 by the month.

But Obama doesn’t seem to realize he’s behind; he recently said he expects to have “the pillars in place for recovery this year,” and dismissed calls for more decisive bank action as coming from “blogs.” Eventually he’ll come around, Krugman thinks, but by then his economic policies will appear to have failed, and Congress might not give him the money. “As a result, the recession rages on.”

President Barack Obama makes remarks at the Columbus Police Graduation Exercises in Columbus, Ohio ,Friday, March 6, 2009.
President Barack Obama makes remarks at the Columbus Police Graduation Exercises in Columbus, Ohio ,Friday, March 6, 2009.   (AP Photo/Gerald Herbert)
President Barack Obama makes remarks at the Columbus Police Graduation Exercises in Columbus, Ohio, Friday, March 6, 2009.
President Barack Obama makes remarks at the Columbus Police Graduation Exercises in Columbus, Ohio, Friday, March 6, 2009.   (AP Photo/Gerald Herbert)
« Prev« Prev | Next »Next » Slideshow

The White House has decided to muddle through on the financial front, relying on economic recovery to rescue the banks. And with the stimulus plan too small to deliver an economic recovery ... well, you get the picture. - Paul Krugman

Republicans are now firmly committed to the view that we should do nothing to respond to the economic crisis, except cut taxes — which they always want to do regardless of circumstances. - Paul Krugman

« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   MSN Living   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   Biography   |   Barstool Sports   |   OK!