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Friday, December 26, 2014

Paul Krugman: Tidings of Comfort

Sometimes, government is the best solution to our problems:

Tidings of Comfort, by Paul Krugman, Commentary, NY Times: ... All year Americans have been bombarded with dire news reports portraying a world out of control and a clueless government with no idea what to do.
Yet if you look back at what actually happened over the past year,... a number of major government policies worked just fine — and the biggest successes involved the most derided policies. You’ll never hear this on Fox News, but 2014 was a year in which the federal government, in particular, showed that it can do some important things very well...
Start with Ebola... Judging from news media coverage..., America was on the verge of turning into a real-life version of “The Walking Dead.” And many politicians dismissed the efforts of public health officials... As it turned out, however, the Centers for Disease Control and Prevention ... knew what they were doing..., there was no outbreak here.
Consider next the state of the economy. There’s no question that recovery from the 2008 crisis has been painfully slow and should have been much faster. In particular, the economy has been held back by unprecedented cuts in public spending and employment.
But the story you hear all the time portrays economic policy as an unmitigated disaster... So it comes as something of a shock when you look at the actual record and discover that growth and job creation have been substantially faster during the Obama recovery than they were during the Bush recovery last decade (even ignoring the crisis at the end)...
What’s more, recent data suggest that the economy is gathering strength... Maybe economic management hasn’t been that bad, after all.
Finally, there’s the hidden-in-plain-sight triumph of Obamacare, which is just finishing up its first year of full implementation. ... In fact, Year 1 surpassed expectations on every front. ... And all indications suggest that year two will be marked by further success.
And there’s more. For example, at the end of 2014, the Obama administration’s foreign policy, which tries to contain threats like Vladimir Putin’s Russia or the Islamic State rather than rushing into military confrontation, is looking pretty good.
The common theme here is that, over the past year, a U.S. government subjected to constant bad-mouthing, constantly accused of being ineffectual or worse, has, in fact, managed to accomplish a lot. On multiple fronts, government wasn’t the problem; it was the solution. Nobody knows it, but 2014 was the year of “Yes, we can.”

    Posted by on Friday, December 26, 2014 at 12:15 AM in Economics, Policy, Politics | Permalink  Comments (69)


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