The article, The Money Melodrama in Washington, by Richard Reeves starts with the following premise:
Stating the obvious: Politicians know politics; that’s their business. Business is not their business, and any discussion about American presidents and economics has to begin with this discouraging word: American politicians, with a very small number of exceptions, don’t know anything about economics.
That is also one of the main contentions of my political blog here.
I think Reeves makes a common mistake in the following sentence:
In Washington, during the deficit debates for the past few weeks, politicians are guessing—as I think most economists and pundits are—and they seize on almost any deficit idea that sounds good at the time.
Politicians are guessing which is the right direction to go, cuts or tax increases for the wealthy. I think most economists are guessing about a different matter. They are guessing the size of the debacle when the politicians choose the well known wrong road. Only diehard economists like the ones at the Chicago School of Economics dispute the fact that cutting spending and continuing the massive shift of wealth distribution to the wealthy is the road to ruin.
Unfortunately, President Barack Obama in the typical politician’s lack of knowledge of economics does not know how far out of the mainstream are his economics advisers from the Chicago School of Economics. That is why Obama and the Right Wing are competing for setting the goal of how far down the wrong road we should go.