In an interview with Germany’s Der Spiegel, Harvard economist Kenneth Rogoff implies that had Obama not “given in” to the Tea Party “terrorists” there would not be the current unrest in international financial markets. Huh? Where has this guy been the last couple of years? He’s confusing cause and effect. The Tea Parties arose because of the economic mess big government liberals in Washington created.–they did not cause them. The Tea Parties have no real institutional power. The global elites who have screwed things up now want to blame it on….you and me. Here’s what he said. Be sure to read the entire interview for the full context.
“SPIEGEL: What have politicians done wrong on both sides of the Atlantic during the latest financial crisis?
Rogoff: I just cannot understand how President Obama made so many concessions in the latest negotiations over the debt ceiling. He was holding all the cards and he was still stared down by the Tea Party. He should have said: “I do not negotiate with terrorists. If you want to bring down financial markets, it will be on your head. I am going to behave normally and responsibly.” Instead, he got gamed into making giant concessions, and this has weakened the presidency. Perhaps the damage will not be lasting, but then next time the president may have to prove him or herself willing to accept a short technical default rather than give in.”
The full interview is here.