Did Obama Just Throw Keynes Under the Bus?
Today, President Obama made the most stunning remarks on the economy he has made during his tenure:
"For growth to be truly sustainable -- for our prosperity to be truly shared and our living standards to actually rise -- we need to move beyond an economy that is fueled by budget deficits and consumer demand," the president said.
"In other words, in order to create jobs and raise incomes for the middle class over the long run, we need to export more and borrow less from around the world, and we need to save more money and take on less debt here at home."
This is an incredible admission from the nation's leading advocate of inflating and spending your way out of recession. Keynesian philosophy, in a nutshell, suggest that budget deficits and consumer demand are the only way to get us out of recession. Now he's claiming that we need to produce goods and services the rest of the world wants to buy, stop living on debt, and save more money. Doesn't sound much like this old Obama chestnut from exactly a year ago, February 6, 2009:
So then you get the argument, well, this is not a stimulus bill, this is a spending bill. What do you think a stimulus is? (Laughter and applause.) That's the whole point. No, seriously. (Laughter.) That's the point. (Applause.)
Either Obama has renounced everything he has done over the past year, or he's attempting to tack to the center rhetorically without actually changing his policies. In either case, this is a quote Republicans need to use early and often against Obama.
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