Freedom Line Blog

Larry Summers, the economist whose resume includes helping create the kind of mortgage default swaps that crashed the financial system, being fired as President of Harvard for sexist remarks about female scientists, and resigning in disgrace as his infrastructure-heavy stimulus package failed, is back with a plan only a Soviet central planner could love.

Writing for Newsweek (itself an entity that’s seen better days), Summers tells his former boss, “Mr. President, We Need a 10 Year Plan.” Give Summers credit for brashness; in Soviet Russia the Communist Party considered it a success if it could make good on any of its 5 year plans.  (It never did.)

I’ll use Summers’ piece as an excuse to do something otherwise thought impossible: praise President Barack Obama for firing at least one bad economist.

It’s not about central planning, Larry; it’s about incentives.  Reform the tax code and streamline regulations with incentives for hiring and producing, and the economy will grow.

The Obma White House has long followed the idea that there’s no problem that the federal government shouldn’t fix.

Now, it’s telling us that there’s no improvement that the federal government shouldn’t fix, either.

That appeared to be the message from White House Council of Economic Advisors Chairman Christina Romer and National Economic Council Chairman Lawrence Summers, both of whom made the rounds on yesterday’s Sunday talk shows.  In his comments to George Stephanopoulos on ABC’s This Week, Mr. Summers said that, “most professional forecasters are now looking for a return to job growth by spring.”  And appearing on NBC’s Meet the Press, Ms. Romer predicted “positive job growth sometime in the first quarter.”

But as noted by The Wall Street Journal today, we must ignore federal deficits in favor of more “stimulus” spending.  According to both Summers and Romer, shifting focus to the deficit instead of spending even more during a period of record deficits would be “suicide.”

So let’s get this straight:  Obama’s first “stimulus” was supposed to cap unemployment at 8%.  It’s now at 10%.  But despite the fact that the White House expects job growth to return in the next quarter, it wants to spend even more to “stimulate?”

One is left to wonder whether the Obama Era more closely resembles a work of Orwell or merely an issue of The Onion.