From the fact that people are very different it follows that, if we treat them equally, the result must be inequality in their actual position, and that the only way to place them in an equal position would be to treat them differently. Equality before the law and material equality are therefore not only different but are in conflict with each other; and we can achieve either one or the other, but not both at the same time

-- F.A. Hayak

Saturday, March 7, 2009

Update: Reality is a Problem for the President

David Brooks and the others who have expressed regrets at having supported Obama's candidacy. They have good reason. In a previous post, I critiqued the response from the Obama administration to the reservations expressed by David Brooks of the New York Times. In that response, I asserted that the administration's assumptions were valid only in their special happy place they go when things get bad.
Well, in today's Wall Street Journal, economics professor Michael J. Boskin takes the administration to task for its rosy assumptions in an editorial entitled Obama's Radicalism Is Killing the Dow. Consistent with my earlier analysis, Boskins view is that...
The specific problems, however, far outweigh the positives. First are the quite optimistic forecasts, despite the higher taxes and government micromanagement that will harm the economy. The budget projects a much shallower recession and stronger recovery than private forecasters or the nonpartisan Congressional Budget Office are projecting. It implies a vast amount of additional spending and higher taxes, above and beyond even these record levels. For example, it calls for a down payment on universal health care, with the additional "resources" needed "TBD" (to be determined).
What must the Obama economic team be thinking? I mean, the wheels have come off and we're still sliding toward the precipice. These people have to get the act together.