Not one to gloat, but I told you so. I was mocked yesterday for writing that the Blago scandal would soon fade and the economy would once again take center stage. ("Blago Schmago: It's the economy stupid") Yes, there will be repercussions for the Senate, but as far as Obama goes, he's got much bigger fish to fry. The gravity of the economic crisis cannot be overstated: we are in a world of hurt, the consequences of which we are barely beginning to grasp. If you had any doubt that the Republicans were radical right-wingers, just witness them drinking the proverbial Jonestown Koolaid and gut the heart out of our industrial sector.
To look at the front page of the New York Times today versus two days ago, you would think a year had passed. Yesterday's paper was plastered with endless coverage of Gov. Rod R. Blagojevich venal and stupid attempt to sell the vacant Illinois Senate seat. Squadrons of reporters were examining every angle and the right was licking its chops at what it saw as a chink in Obama's armor. That's old news. Blago is wrapping fresh fish at Chicago's markets. The left has been so focussed on the political implications of the Obama electoral campaign and victory that we have not adequately set out a progressive economic agenda. Worse, we are walking into an economic policy void due to our time in the wilderness. I think Nobel-prize winner, Paul Krugman of The New York Times has articulated the most coherent view of our economic plight.
In a series of columns dating back before anyone gave Barack a snowball's chance, Krugman was decrying the devastating impact that the Republican economic policies were having on most Americans. Recently, Krugman has sounded the alarm on the apparent drift overtaking the political establishment.
How much should we worry about what looks like two months of policy drift? At minimum, the next two months will inflict serious pain on hundreds of thousands of Americans, who will lose their jobs, their homes, or both. What’s really troubling, however, is the possibility that some of the damage being done right now will be irreversible
I have no love lost for the automakers, but the current economic debate is just not taking into account the magnitude of the economic crisis. Again, Krugman:
Now, maybe letting the auto companies die is the right decision, even though an auto industry collapse would be a huge blow to an already slumping economy. But it’s a decision that should be taken carefully, with full consideration of the costs and benefits — not a decision taken by default, because of a political standoff between Democrats who want Mr. Paulson to use some of that $700 billion and a lame-duck administration that’s trying to force Congress to divert funds from a fuel-efficiency program instead.
But nothing is happening on the policy front that is remotely commensurate with the scale of the economic crisis. And it’s scary to think how much more can go wrong before Inauguration Day.
The Blago car wreck is over. Move on folks. We need to get to work.