Economic Populism: Good Policy and Good Politics

Most people don't necessarily "get" Keynesian macroeconomic theory.  They do understand vast and increasing inequality, and they don't like it.  I hope Obama does make inequality the centerpiece of the upcoming State of The Union address.  The President needs to make the case.

A Note on the Political Economy of Populism

It has been painfully obvious, to anyone willing to see (a group that unfortunately doesn't include a large part of the press corps) that deficit obsession hasn't really been about deficits — it has been about using deficits as a club with which to smash to welfare state, and hence increase inequality. Even the supposedly nonpartisan players have this remarkable habit of including "reducing marginal tax rates" as a key goal of deficit reduction strategies, which is a dead giveaway to what it's really about. Conversely, talking about the need to help struggling families is also a way to shift the focus away from deficit obsession, and pave the way at least for a relaxation of austerity, if not actual stimulus.

I'm holding out for actual stimulus.  Make the case, and then beat the Republicans mercilessly in the midterms with their anti-worker, anti-family, regressive policies.