Why didn't Obama call for more stimulus? The answer is simple, the longest postwar recovery ever, the fast reduction of lil Bush's debt, faster debt reduction in post war history. So we have this long expansion, growth at 2.5% in the face of a massive underfunding of entitlements. Obama did the correct thing, the stimulus was driving up oil prices and causing recession.
What we do not understand is why smart economists had so little influence in the public sphere—with special reference to Barack Obama’s call for an anti-Keynesian anti-recovery spending freeze in the 2010 State of the Union address. After that I ripped both Peter Orszag and Tim Geithner new ones: But I never got a satisfactory explanation of why the president thought this was a good thing to do.
Delong and the kanosian idiots, all claiming, in retrospect, that we could have achieved another half point of growth if we just ran up oil prices to 120 again; prices were back to 110 at the height of the stimulus spending.
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