Europe has spending lesson for Obama
President Obama has called on European countries to borrow and spend more to stimulate the world economy. But commentator David Frum says Obama should listen to European leaders who say spending isn't the best way out of the crisis.
David Frum (David Frum)
More on International, Commentaries, Europe, America's Financial Crisis
TEXT OF COMMENTARY
Kai Ryssdal: The G-20's led the economic news the past couple of days. But really, the event itself, that is, the meeting between the leaders of all the various countries tomorrow, is only going to last four hours. That's not a lot of time to save the global economy. So commentator David Frum thinks it's handy that the Europeans will be feeling a little bit of deja vu.
DAVID FRUM: Have you seen this movie before?
A brash and self-confident American president has a big, bold, and costly idea. Hesitant Europeans resist. The president's advisers and supporters murmur doubts about the toughness of "old Europe."
No, it's not Iraq this time. This time it's the Obama administration's call on European countries to borrow and spend on the same astounding scale as the United States. The United States and Europe will confront these issues face-to-face at this week's G-20 summit.
Barack Obama plans to double the U.S. debt load over his time as president, reaching levels last seen at the end of World War II.
European governments are less impressed by this brain wave. For 20 years, Europe has attempted to combat unemployment with very high levels of public spending. What they have got out of the experiment is crushing taxation, ominous debts and not much of a bite out of the unemployment problem. It baffles leaders in France and Germany that the United States would volunteer to inflict these policy errors on itself at just the moment when France and Germany are struggling to undo similar errors of their own.
In a crisis, countries must inevitably spend more, tax less and accept higher deficits. That's one reason why it's so important to keep a good balance sheet in normal economic times, to leave scope to react to crisis. What the Obama administration is proposing for the United States is not a temporary stimulus but permanently higher spending, taxing and borrowing. Those who have tasted this medicine understand best how dangerous it is. At the G-20, perhaps President Obama should lecture less and listen more.
RYSSDAL: David Frum is a resident fellow at the American Enterprise Institute.
Comments
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From Charlotte, NC, NC, 04/06/2009
I was shocked to hear David Frum's critique of Obama's recent attempts to get our European partners to participate in our own level of irresponsible spending. I was shocked simply because NPR and Market Place rarely give sway to more conservative views! I’d say for every 10 liberal there may be 1 “moderate” commentary. So hats off Market Place for having some courage to post a semi strong view.
And lets face it folks Frum was simply pointing out what some countries have done in times like this and have proven them not to work.
You can continue to deny the truth but in a handful of years from now when O’s policies come to full fruition and your staring like deer’s in a headlights before your run over by crushing national you can continue to blame whomever you want, but the actions of those that preceded Mr. Audacity of Hope will pale in comparison.
From South Royalton, VT, 04/06/2009
You are steadily undermining your credibility by continuing to grant airtime to David Frum and his blatant propaganda. For me, your show has gone from a "must hear" to a complete afterthought. What are these guys paying you? It isn't worth it!
From El Cajon, CA, 04/05/2009
I don't know why Marketplace and NPR in general rely on AEI so much for their commentary, given that AEI is just a Far Right Wing PR organ, and has been fundamentally wrong on every issue whose consequences we face today. Look around you, they wanted war in Iraq, deregulation of the financial sectors, unhinged free markets, they support Israel unambiguously, and preach Christian Fundamentalist values at every turn.
And you think their words are valuable?
One example, from Frum above. "What the Obama administration is proposing for the United States is not a temporary stimulus but permanently higher spending, taxing and borrowing."
That is what honest and decent people call a lie, the media, like Marketplce and NPR seem to have a softer way of describing it, I think you all use the terminology, 'an opposing viewpoint.'
The Right Wing is out of power, out of favor, unliked, disrespected, wrong, and more. They have no business being on your show, especially when they seem to be the speakers far more than people on the left or in the Administration or the Democratic Party.
Stop and disist this bias, now.
From Walnut Creek, CA, 04/02/2009
Another April Fool's joke? Since when does David think that putting words in Europeans' mouths makes for an argument?
Why must bias be so transparent in the commentaries posted by the American Enterprise Institute on Marketplace?
I'm not sure who this commentary was meant to help. At least there wasn't a veiled threat of a mushroom cloud in his rhetoric.
I don't listen to Marketplace for political saber-rattling, but for an honest attempt to make sense from real stories of business and economics. Please consider listeners like me when offering airtime to commentators who would rather pick at an old scab than offer us new information.
From Monroe, LA, 04/02/2009
Did you really not have any comments in support of David Frum's commentary? I find that really hard to beleive, and very sad that we have gotten so comfortable borrowing from our children to spend and live beyond our means. It is nothing bu generational theft!
From La Jolla, CA, 04/02/2009
It is David Frum, a Canadian neocon, who should lecture less and listen more. He is among the neocons who advocated for this 'war of choice, not necessity' in Iraq at a huge cost in blood and treasury. Republicans squandered the surplus left by President Clinton by giving the richest Americans a tax cut during wartime for the first time in our history which cost $1.5 trillion and we now have the largest debt in history! When Mr. Bush took the oath of office in 200l, the nonpartisan CBO projected $5.6 trillion in federal budget surpluses through 2011. President Obama has inherited the fallout of the failed policies of the Bush administration but is blessed with a cerebral mind that can guide policies that will get America back on track. Yes he can!
From Sonoma, CA, 04/02/2009
Ironically the negative comments above are in fact vacuous and reactionary. In the long run the administrations course will stifle the economy. And even the French know it.
From Santa Barbara, CA, 04/02/2009
Why are we hearing so much from David Frum on Marketplace these days? He is nothing but a shill for the extreme far right of the Republican party. The Republicans wrecked this economy. I don't think they should be giving advice now.
From Saint Paul, MN, 04/02/2009
I found Mr. Frum's "commentary" vacuous. He was critical of the president's plan without offering any positive solution of his own. I expect more substance from Marketplace.
From Concord, MA, 04/01/2009
Enough of the AEI free copy!!!! This is not serious journalism but partisan shilling. There are plenty of interesting economists and business people to interview rather than relying on these dreadful handouts. enough.
04/01/2009
Since when has commentary on marketplace become the soapbox for the AEI? Seriously folks, there are other voices out there, you once called them. I suggest you find some of their phone numbers. They should be underneath that AEI newsletter you can't put down.
From Athens, GA, 04/01/2009
David Frum wants his cake and to eat it too. President Obama and US citizens clearly have our collective heads on the chopping block. Our President is an easy target for arm chair quarterbacks like David. Where was David's confidence in European opinion when his guy was playing cowboy in chief? Oh right, this is April Fool's day. Enjoy the cake David!
From CA, 04/01/2009
Of course it's an April Fool's joke. Nobody would actually take what he's saying seriously, especially with his last paragraph where he seems to indicate these are "normal" times.
Heck, his commentary was preceded by a story about how the European nations are feeling validated in their approach by this crisis. US & British unemployment rates are in line with France & Europe, but those places already have supports in place to deal with the problem while we're scrambling and making it up as we go along. Europe is simply saying their spending will already increase because it's set up to do that when unemployment rises. This commentator seems to be saying they want to cut their social nets and follow the US into the every-man-for-himself free for all that got us into this mess.
Clearly, this must be a joke.
From Jacksonville, FL, 04/01/2009
David Frum is a member of AEI....He seems to think he knows what is best for the country..well read below.....
AEI emerged as one of the leading architects of the second Bush administration's public policy.[3] More than twenty AEI alumni and visiting scholars and fellows served either in a Bush administration policy post or on one of the government's many panels and commissions.
Soooooo.......These are the people who advised Bush on the last four years and it is the republican
debts...that we are paying for and the reason we are in the mess we are in....soooooooo......Under the Clinton Administration we paid down the debt and left Bush with a country doing well....I don't think his advise has any credibility...Let's let Obama fix the economy and let the Republicans go home ...
From CA, 04/01/2009
Please - please tell this is the spoof.
I choked when I heard this: "In a crisis, countries must inevitably spend more, tax less and accept higher deficits. That's one reason why it's so important to keep a good balance sheet in normal economic times, to leave scope to react to crisis."
Aren't we in one now?
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