Does Coral Gables Have Pundit Shock??
July 19, 2010 Leave a comment
According to Paul Krugman, Obama will pay the price of playing politics with the stimulus package:
The best way for Mr. Obama to have avoided an electoral setback this fall would have been enacting a stimulus that matched the scale of the economic crisis. Obviously, he didn’t do that. Maybe he couldn’t have passed an adequate-sized plan, but the fact is that he didn’t even try. True, senior economic officials reportedly downplayed the need for a really big effort, in effect overruling their staff; but it’s also clear that political advisers believed that a smaller package would get more friendly headlines, and that the administration would look better if it won its first big Congressional test.
In short, it looks as if the administration itself was taken in by the pundit delusion, focusing on how its policies would play in the news rather than on their actual impact on the economy.
Taxpayers in Coral Gables will pay the price for the Commissioners believing in the real estate optimism (called marketing) that the Coral Gables economy will come back in the next year, or so. The “or so” is the most likely, and trained observes say that it will not take months, but years, for the economy to come back. There is nothing special about Coral Gables that makes it exceptional.
Hence the Commissioners should push for a bigger budget tightening than they are doing now to fit with the new culture of austerity.