A Little Chirping From the Left Will Aid Obama

TW: Yesterday, I posited Paul Krugman was far less known than Rush Limbaugh. He still is but the irony of Krugman popping up as cover boy for Newsweek within hours is not lost. In addition to serving Krugman's considerable ego, such stories help Obama. When the conservatives are pulling as hard as their enfeebled selves can to rein in Obama from the right, a little counter-pressure from the left not only offsets the policy debate, it helps Obama to appear centrist.

Krugman's theme is that Obama needs to do more not less. Be more aggressive with the banks by nationalizing them, be more aggressive with stimulus perhaps by a factor of two. Krugman leads the camp concerned that the world economy is at risk of a very severe depressionary contraction. He is the antithesis of those here and abroad who argue the current crisis while significant does not warrant extraordinary intervention in an effort to avoid a more serious contraction.

From Politico:
"...Krugman...appears on the cover of next week’s Newsweek, with the headline “OBAMA IS WRONG: The Loyal Opposition of Paul Krugman.” Krugman, who won the Nobel Prize in economics last fall, has been arguing that Obama is doing too little to respond to threats to the nation’s banking and economic system, and he has contended that the $787 billion stimulus bill should have been bigger. Krugman personifies a conundrum for Obama: He has to cope with complaints from the political left, as well as the more predictable opposition of the right.

“Every once a while, … a critic emerges who is more than a chatterer—a critic with credibility whose views seem more than a little plausible and who manages to rankle those in power in more than passing ways. As the debate over the rescue of the financial system—the crucial step toward stabilizing the economy and returning the country to prosperity—unfolds, the man on our cover this week, Paul Krugman of The New York Times, has emerged as the kind of critic who, as Evan Thomas writes, appears disturbingly close to the mark when he expresses his ‘despair’ over the administration’s bailout plan. …

“There is little doubt that Krugman—Nobel laureate and Princeton professor—has be come the voice of the loyal opposition. What is striking about this development is that Obama’s most thoughtful critic is taking on the president from the left at a time when, as Jonathan Alter notes, so many others are reflexively arguing that the administration is trying too much too soon. "A devoted liberal, Krugman hungers for what he calls ‘a new New Deal,’ and he prides himself on his status as an outsider.

Is Krugman right? Is the Obama administration too beholden to Wall Street and to the status quo, trying to save a system that is beyond salvation? Does Obama have—despite the brayings of the right—too much faith in the markets at a time when prudence suggests that they cannot rescue themselves? We do not know yet, and will not for a while to come. But as Evan—hardly a rabble-rousing lefty—writes, a lot of people have a ‘creeping feeling’ that the Cassandra from Princeton may just be right. After all, the original Cassandra was.”