Howes (The Detroit News) on Wed, Jul 7, 2010 at 11:34 AM
'The Elite' turning on BHO's misguided economic 'policies'

http://apps.detnews.com/apps/blogs/danielhowesblog/index.php

You know it's shaping up to be another crappy week for Team Obama and
it's economic management when the lefty elite gather in Aspen ... and
trash the president's economic policies (or what passes for them,
anyway).

Lloyd Grove, editor-at-large for The Daily Beast, offers this gem from
the Aspen Idea Festival, sponsored by Atlantic Monthly mag and the
Aspen Institute. In it, he quotes the much-quoted Niall Ferguson, the
Harvard economist-turned-historian (and native Briton) who knows a
thing or two about decline.

"If you're asking if the United States is about to become a socialist
state, I'd say it's actually about to become a European state, with
the expansiveness of the welfare system and the progressive tax system
like what we've already experienced in Western Europe," Ferguson told
Monday's kickoff session. Grove says the Harvard prof offered "a
withering critique of Obama's economic policies, which he claimed were
encouraging laziness."

Ferguson continued: "The curse of longterm unemployment is that if you
pay people to do nothing, they'll find themselves doing nothing for
very long periods of time. Long-term unemployment is at an all-time
high in the United States, and it is a direct consequence of a
misconceived public policy. Can I say that, having grown up in a
declining empire, I do not recommend it. It's just not a lot of fun
actually -- decline."

The emperor, it appears, is scantily clad, but only now are his most
ardent subjects beginning to recognize his sartorial minimalism for
what it is. It's probably not overstatement to suggest the president
is losing his hold on an influential chunk of his base -- you know,
the same people who a) can write big checks because b) they know how
to make money running businesses themselves and booking profits doing
it.

Can't be pro-growth and anti-business, as the NYT's Tom Friedman
wrote, astonishingly, last month. Can't extend government support to
the unemployed for the longest period since the Great Depression and
wonder if there isn't a connection to why more people aren't working.
(See A-1 story in today's WSJ on the intensifying debate.) Can't
meddle with health-care, financial regulation, the vast energy market
and trash business and then wonder why business isn't hiring.

Which, of course, is why the White House is clearly trying this week
to pivot to "growth" and bolstering exports to divert attention from
increasingly withering attacks on the counter-productivity of BHO's
economic populism. It isn't working and it doesn't build confidence,
which is why consumers are wary about spending and businesses are wary
about hiring. It's pretty simple.



>From The Detroit News:
http://apps.detnews.com/apps/blogs/danielhowesblog/index.php#ixzz0u9GD28FA
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