July 13, 2009
– Comments (2)
Obama's point is that people are politicizing the stimulus by creating irrational fears about it. Based on the historical example of the New Deal/WWII era, government debt does not necessarily mean astronomical rates of inflation in the future, so long as the budget is balanced after a recovery begins. A lot of people don't understand what the government has done, and therefore, become afraid when opposition political organizers tell them to.
All the the New Deal/WWII era shows us is that government intervention and programs can't "stimulate" the economy out of a rough patch. It wasn't until the end of WWII when Truman ended many of those programs that the economy finally could correct on its own. It is a complete myth that the government intervention or WWII led to the correction. Obama believes the myth that government can try to change the laws of economics without harsh consequences.
In other words, he believes the people who helped create this mess, ignored the mess for as long as possible, and now only listens to those people. Same thing as Bush. It isn't "irrational fear", it's common sense.