Obamanomics suffers from a misunderstanding of what the president is trying to achieve and what he’s up against. Into the breach come Republicans, tea partiers, nay-sayers, deficit vultures, and Raging-Dog Democrats, all viewing Obamanomics as more taxes and more spending. That’s nonsense. To see the big picture, keep your eye on three big things.
1. Government spending needed to offset the continued reluctance of consumers and businesses to spend. You don’t have to be an orthodox Keynesian to understand that as long as the private sector is deleveraging, the public sector has to borrow and spend in order to keep the economy moving forward.