alexch's almanac

"Orszag argued that he needed more support from Washington’s deficit hawks, and urged him to create a deficit commission, partly because “it can provide fiscal credibility during a period in which it is unlikely we would succeed in enacting legislation.” It presented Obama with a common Presidential dilemma: Should he use the White House bully pulpit to change minds or should he accept popular opinion? He chose the latter. In his speeches, he began saying, “Americans are making hard choices in their budgets. We’ve got to tighten our belts in Washington, as well.” Romer fought to get such lines removed from his speeches, arguing that it was “exactly the wrong policy.” She thought the President should emphasize that the government would seek to use taxpayer money wisely, and leave it at that. Instead, he seemed to be accepting the Republican case against stimulus and for austerity. She thought he was losing faith in Keynesianism itself."