January 9th<\/u>: <\/b>The next day, Nobel Laureate Economist NYT Columnist, Paul Krugman, responded with a column, The Obama Gap<\/b><\/font><\/a>, which said:<\/div>\n
\nBut Mr. Obama\u00e2\u20ac\u2122s prescription doesn\u00e2\u20ac\u2122t live up to his diagnosis…<\/sup><\/div>\nWhy isn\u00e2\u20ac\u2122t Mr. Obama trying to do more?<\/sup><\/div>\n\n
Is the plan being limited by fear of debt?<\/sup><\/div>\nIs the plan being limited by a lack of spending opportunities?<\/sup><\/div>\nOr is the plan being limited by political caution?<\/sup><\/div>\n<\/ul>\nWhatever the explanation, the Obama plan just doesn\u00e2\u20ac\u2122t look adequate to the economy\u00e2\u20ac\u2122s need…and the gap between Mr. Obama\u00e2\u20ac\u2122s stern economic rhetoric and his somewhat disappointing economic plan.<\/sup><\/div>\n<\/blockquote>\nJanuary 10th<\/u>:<\/b>The following day, Obama responded<\/b><\/a> to a reporter’s question with:<\/div>\n\nI want this to work. This is not an intellectual exercise, and there is no pride of authorship. If members of Congress have good ideas, if they can identify a project for me that will create jobs in an efficient way, that does not hamper our ability to \u00e2\u20ac\u201d over the long term \u00e2\u20ac\u201d get control of our deficit, that is good for the economy, then I\u00e2\u20ac\u2122m going to accept it. If Paul Krugman has a good idea, in terms of how to spend money efficiently and effectively to jump-start the economy, then we\u00e2\u20ac\u2122re going to do it. If somebody has an idea for a tax cut that is better than a tax cut we\u00e2\u20ac\u2122ve proposed, we will embrace it. So, you know, one of the things that I think I\u00e2\u20ac\u2122m trying to communicate in this process is for everybody to get past the habit that sometimes occurs in Washington of whose idea is it, what ideological corner does it come from. Just show me. If you can show me that something is going to work, I will welcome it.<\/sup><\/div>\n<\/blockquote>\nOn the same day, the Report from Obama’s Economic team was released:<\/div>\n<\/p>\n
The Job Impact of the American Recovery and Reinvestment Plan [pdf] <\/b><\/font><\/a><\/div>\n
![](\"http:\/\/1boringoldman.com\/images\/ararp.gif\")
<\/div>\n![](\"http:\/\/graphics8.nytimes.com\/images\/2006\/04\/02\/opinion\/ts-krugman-190.jpg\")
O.K., I\u00e2\u20ac\u2122ll bite \u00e2\u20ac\u201d although as I\u00e2\u20ac\u2122ll explain shortly, the \u00e2\u20ac\u0153jump-start\u00e2\u20ac\u009d metaphor is part of the problem. First, Mr. Obama should scrap his proposal for $150 billion in business tax cuts, which would do little to help the economy. Ideally he\u00e2\u20ac\u2122d scrap the proposed $150 billion payroll tax cut as well, though I\u00e2\u20ac\u2122m aware that it was a campaign promise. Money not squandered on ineffective tax cuts could be used to provide further relief to Americans in distress \u00e2\u20ac\u201d enhanced unemployment benefits, expanded Medicaid and more. And why not get an early start on the insurance subsidies \u00e2\u20ac\u201d probably running at $100 billion or more per year \u00e2\u20ac\u201d that will be essential if we\u00e2\u20ac\u2122re going to achieve universal health care?<\/sup><\/p>\n![](\"http:\/\/tbn2.google.com\/images?q=tbn:wwpqFN7L8nWEoM:http:\/\/images.nymag.com\/images\/2\/daily\/intel\/08\/06\/27_obama_lg.jpg\")
Mainly, though, Mr. Obama needs to make his plan bigger. To see why, consider a new report from his own economic team. On Saturday, Christina Romer, the future head of the Council of Economic Advisers, and Jared Bernstein, who will be the vice president\u00e2\u20ac\u2122s chief economist, released estimates of what the Obama economic plan would accomplish. Their report is reasonable and intellectually honest, which is a welcome change from the fuzzy math of the last eight years. But the report also makes it clear that the plan falls well short of what the economy needs.<\/sup><\/div>\n