In the article below, Alan Blinder, former Fed Vice Chair and partisan Democrat, says we need an “evidence-based” economic policy based on “facts and logic.” Unfortunately Blinder’s article is almost entirely free of evidence, facts, or logical chains of argument. He does cite one shred of evidence: that President Clinton’s tax increase did not seem to harm the economy. But the rules of logic say that you cannot exclude counter evidence and there is no mention of the Fed’s profligate money printing at the same time, which brought us the Dot-Com stock market bubble, which made the economy under Clinton look good when it wasn’t, and which led directly to the stock market crash of 2000, followed by even more money printing and the subsequent housing bubble. It’s not a surprise that this would remain unmentionable, because to mention it Blinder would have to criticize himself.
Blinder ends on an intriguing note. He seems to take for granted that President Obama is a staunch supporter of long term deficit reduction. What is the evidence for this, please? If so, why hasn’t the President proposed any plan to get us there? And why has the President accepted the Democratic controlled Senate’s refusal even to pass a budget?