There was a suggestion published in The Guardian on the weekend that Obama should pick Paul Krugman as the next Secretary of the Treasury to replace Tim Geithner. So many birds would be killed by that one stone that I know it’s not going to happen but the pleasure even of the idea is scrumptious beyond delectation. Here are the nominating words themselves:
President Obama hasn’t picked a treasury secretary yet for his second term, so he has a chance to do something different.
He could ignore what Wall Street and conservative media interests want and pick somebody who would represent what the electorate voted for. And not even just the people who voted for him: there are a lot of Republican voters out there who are also unemployed.
A proposal of the highest calibre and from The Grauniad of all places. Look what a genius Krugman is. He is the very epitome of the Keynesian brand and as pointed out has had one success after another so why not get him to show his stuff by fixing the US and world’s economies all by himself.
Krugman has been right about the major problems facing our economy, where many other economists and much of the business press have been wrong. A few examples: he wrote about the housing bubble before it collapsed and caused the Great Recession; he has forecast and explained that large budget deficits and trillions of dollars of “quantitative easing” (money creation) would not cause inflation or long-term interest rates to rise; and that the ‘confidence fairies’ would not reward governments that pursued austerity in the face of recession.
Most importantly, Krugman is on the side of the majority of Americans. He has written extensively in favor of policies that favor job creation, explained the folly of budget cutting in the face of a weak economy, and opposes cuts to social security and Medicare benefits.
Perfect, perfect, perfect. With Obama’s 100% track record, this must be a natural for him and for them both.