It is interesting, Jon, how Obama has approached this. Most Keynesians, especially modern, do not claim that government spending is the only way out of a recession, just the most efficient and fastest. Here, however, is what Obama said back in January:
…only government can provide
the short-term boost necessary to lift us from a recession this
deep and severe. Only government can break the vicious cycles that
are crippling our economy?where a lack of spending leads to lost
jobs which leads to even less spending; where an inability to lend
and borrow stops growth and leads to even less credit.
Now compare this to part of his speech you referenced:
Of course, there is only so much government can do. Job
creation will ultimately depend on the real job creators: businesses
across America.
Of course, these are only snippets of speeches. And if you believe that government spending (whether adding to the deficit or financed by higher taxes) has no crowding out effect on private spending, this could be seen as consistent. But I know of a Frenchman who may disagree…
