By any normal standard, economic policy since the onset of the financial crisis has been a dismal failure. It’s true that we avoided a full replay of the Great Depression. But employment has taken more than six years to claw its way back to pre-crisis levels — years when we should have been adding millions of jobs just to keep up with a rising population. Long-term unemployment is still almost three times as high as it was in 2007; young people, often burdened by college debt, face a highly uncertain future.
Now Timothy Geithner, who was Treasury secretary for four of those six years, has published a book, “Stress Test,” about his experiences. And basically, he thinks he did a heckuva job.
He’s not unique in his self-approbation. Policy makers inEurope, where employment has barely recovered at all and a number of countries are in fact experiencing Depression-level distress, have even less to boast about. Yet they too are patting themselves on the back.
Curated from www.nytimes.com
The problem wasn’t so much what Geithner thinks, although that too is a problem, but what a majority of Democrats voters thought about how the Great Recession was handled up until the GOP took the House. That the Obama administration was advised by a bunch of corporate Democrats and there weren’t sufficient progressives in Congress to rein them in is the real problem. The stimulus and healthcare might have looked different.