When Bill Clinton ran for president, the slogan inside his campaign’s war room was a blunt reminder to focus on “the Economy, Stupid.” This was Clinton’s first enduring contribution to the American stock of catch-phrases.
Now, Bill’s wife, Hillary, seeks the top banana position. But she has a harder job than Bill: he could fight against a lackluster incumbent caught in a big lie (“No New Taxes,” another slogan). Hillary is almost required to defend the outgoing president, in no small part because she served in his Cabinet.
If she were candid, she’d address the weak recovery and long-term stagnation.
Her slogan could be, “It’s the Stupid Economy.”
No matter what politicians say, however, secular (long-term) stagnation is a thing. Lots of people have given up, are off the roles of job-searchers and so don’t appear in official unemployment statistics, and too many people have taken early retirements on trumped-up disability claims.
At least, economist Lawrence Summers is decrying it, jet-setting around the world to meet with financial leaders and political functionaries.
I doubt his diagnosis, however. Summers talks Keynesian, pointing to inadequate aggregate demand. While there may be something to the general shift in the desire to hold monetary assets, leading to deflation and even negative interest rates, I bet the underlying problem is regime uncertainty — when widespread fears of the future and doubts about governmental consistency and follow-through lead the owners of capital to withhold investing in production.
There are also the effects of general regulatory and redistributionist kludge.
When the problems stem from your favored policies, you can’t revive FDR’s slogan “nothing to fear but fear itself” and let it go at that.
Hillary will surely explain — Thursday night.
This is Common Sense. I’m Paul Jacob.
3 replies on “It’s the Stupid Economy”
Excellent treatment of the situation, Paul. Especially clever use of the phrases. I LOVE “It’s the stupid economy!” As for Larry Summers and the rest of them, eventually popular knowledge of the monstrous crime against humanity of central banking will emerge. Then he and his merry band of billionaire wealth extractors/counterfeiters will start serving decades-long sentences in the orange jumpsuit promenade.
It’s the Democrat Economy. Democrats, in their desire to support Bill Clinton, voted for NAFTA. Then they voted for the Doja round of GATT, which allowed for trade in services. All of this happened with Democrats holding the majority in both houses of Congress. One has to wonder if either agreement would have passed by Democrats without a Democrat in the White House. Look at how they bottled up CAFTA and a few other trade agreements during George W. Bush’s administration. Then Barack Obama won the WH and Democrats suddenly supported free trade again. TPP is coming up. Expect Hillary to support it once in the WH.
Right on Paul. Although I won’t hold my breath waiting for Hillary to provide any meaningful analysis much less an explanation or a solution.