Obama reprising Hoover

In his book Freefall (2010), Nobel economist Joseph Stiglitz writes: “President Bush’s tax cuts of 2001 and 2003 did not lead to the sustained growth that was promised …. (and his) 2008 tax cut didn’t work.”

Reagan initially used the same supply side “logic” in his 1981 and 1985 tax cuts (and in the process alienated his first budget director) but realized by 1986 that it was a catastrophic policy and thus prudently retracted the tax cut.

Bush’s father (“no new taxes”) understood belatedly that the Reagan deficits were unsustainable without added revenue, raised taxes, and thus was not re-elected. I predict that Obama will “sell the farm” to the plutocrats to secure his re-election.

David Alexrod is as much a Machiavellian as Karl Rove. Obama acquiesced to offshore drilling, TARP for Wall Street bonuses (credit default swaps and Bernanke, Geithner and Summers retained), abandoned the public health care option and froze government civilian pay for two years. He will fold on tax cut ultimatums because it is politically expedient, even if it is not sound fiscal policy. Who would have thought in 2008 that Obama 2011 would morph into Hoover?

John B. Hagney

Spokane