The Economic Insanity Underlying President Obama's "Private Sector Is Fine" Gaffe

Here’s an encouraging article in this morning’s (Friday’s) Washington Post, about the conversations politicians are having with their constituents back at home this summer.  Seems that Republicans are getting scolded, and Democrats are feeling a little less wimpy these days, on the topic of tax policy’s role in deficit reduction (emphasis added)

By James Kwak

Graham Summers submits: …just as I am affected by the maniac, so I am affected by most modern thinkers. That unmistakable mood or note that I hear from Hanwell [an insane asylum], I hear also from half the chairs of science and seats of learning to-day; and most of the mad doctors are mad doctors in more senses than one. They all have exactly that combination we have noted: the combination of an expansive and exhaustive reason with a contracted common sense.

CENTENNIAL, Colo. – James Holmes, accused of the cinema attack during a Batman film that killed 12 people and injured 70 others last year, was slated to make a highly anticipated court appearance Tuesday, when he is expected to a plea of not guilty by reason of insanity. Holmes’ lawyers have repeatedly raised questions about his mental health, including a recent revelation that he was held in a psychiatric ward for several days last year, often in restraints, because he was considered a danger to himself.

Click to enlarge graph.

It?s the kind of gaffe that makes it impossible to tune out presidential elections: Obama, speaking at a hastily called session with reporters in the White House briefing room, defended his handling of the weak economy, insisting that ?the private sector is doing fine.? He blamed cuts in government spending and ?head winds? from Europe ...

Daryl Montgomery submits: According to the latest government statistics, U.S. nonfarm payrolls increased by 162,000 in March. The headline unemployment rate was still 9.7% as was the case in January and February. The alternative unemployment rate ticked up to 16.9% however. Most hiring took place thanks to the Census, the health care industry, and the magic of seasonal adjustments - none of which indicate a recovering economy.