Paul Krugman, who has turned Obama into his weekly pinata, takes another whack today:
Thus, in his speech Mr. Obama attributed the economic crisis in part to “our collective failure to make hard choices and prepare the nation for a new age” — but I have no idea what he meant.
If someone makes $40,000 a year, he shouldn’t take a loan for an $800,000 house. When the savings rate plunges to near zero and dips into the red temporarily, there is a collective failure. Obama means, after an era of living beyond its means, the public must make the hard choice of sacrifice.
The government shied away from difficult decisions as well, repeatedly kicking the can down the road on Social Security, Medicare, pensions, etc. Consequently, the budget spiraled deeper into deficit, hampering current options with which to confront the financial crisis.