Robert Borosage, TomPaine.CommonSense, November 27, 2007
Do we have to wait for soup lines in Shaker Heights before we have a serious debate on the economy? In the last two Democratic debates, not one question was directed at what to do about the economy. Iraq, health care, the politics of parsing, pearls or diamonds – all got attention. But the economy – growth, jobs, wages, inflation – the basic stuff has been missing in action. Now, with Republicans headed into the YouTube debate on Wednesday night, it’s time for the unctuous moderators to cut to the chase.
The candidates haven’t done much better than their interrogators. Republicans, for the most part, have been content to praise the Bush economy – “the greatest story never told” in Fred Thompson’s favorite mantra. Economic policy is just another ideological litmus test – prove your conservative credentials by promising to defend the Bush tax cuts and sprinkle on a couple more, while pledging to slash domestic spending. But cutting spending (and jobs) as the economy is headed into a recession is akin to using kerosene to douse a fire.
Democrats have focused more on the pressures facing working families – health care, affordable college, deference to trade fears – but they too have basically assumed a growing economy going forward. Hillary Clinton and Barack Obama’s constant refrain is: Get Bush’s “crushing deficits” under control. But deficit reduction when the economy is slowing doesn’t make much sense, either.
What’s clear now is that this economy is in trouble. The credit crisis is roiling global financial markets. Housing prices and sales are down, with millions of foreclosures beginning to have far broader effect. Oil is at $100 a barrel. The dollar is sinking; gold is near record highs. Food prices are rising. Parents might well be tightening their belts while trying to find toys that won’t poison their children.
Federal Reserve Chairman Ben Bernanke is about as dour as he dare be publicly, projecting sluggish growth through the spring. Larry Summers, Clinton’s former Treasury Secretary, says a recession is more likely than not. (Bob Rubin, Summers’ mentor, was no doubt too preoccupied trying to bail out Citibank to comment.)