Isn’t it interesting that yesterday the President elect treated us to a huge statement on his economic policy, shortly after telling us that he cannot comment on the Israeli/Palestine conflict because you can only have one President at a time?
The one President at a time doctrine clearly only applies to tricky issues where the President elect does not wish to come off the fence. I find that disappointing. If he wishes to be fresh, honest and new, he should avoid such disingenuous explanations of why he is very selective in making Presidential announcements. He is going to have to tell us what he thinks of the Middle East crisis in a few days time, so why the delay? What is Mrs Clinton doing?
The content of the economic statement was no surprise, and builds on the Bush approach of excessive state spending and borrowing. It is a balanced package, in the sense that some of the money is borrowed to offer tax breaks which Republicans might favour, and some to increase spending that Democrats might favour. The Greens too do not get it all their own way. Whilst the package sensibly wishes to spend on improving the USA’s reliance on its own renewable energy sources to cut imported oil, it also favours road building.
Will it work? Yes it will create some new jobs, and in the short term the US government can probably raise the money at low rates of interest. No it will not of itself lift the economy out of recession. That rests on monetary policy and the state of the banking system.