KeithHennessey.com

Politico is running my op-ed today explaining the linkage how the wrong health reform bill will hurt the economy.

Provoked by the Vice President’s comment on Sunday that the Administration “misread the economy,” the Obama Administration is partway through an unplanned shift in their topline economic message. It’s hard to reconcile a “stay the course” strategy with (a) new bad data, (b) “we misread the economy” and (c) “we had incomplete information.”

The Vice President says that “we and everyone else misread the economy,” and that “no one anticipated, no one expected that that recovery package would in fact be in a position at this point of having to distribute the bulk of money.” This is inaccurate.

I began this blog at the end of March after the stimulus bill had become law.  I had been struck by how much the stimulus debate had focused on whether the bill was efficient.  (It clearly was not.)  There was much less discussion of whether the stimulus would be effective, and of the timing of [...]

Almost two months ago, President Obama set a specific employment goal for his Administration:
I think my initial measure of success is creating or saving 4 million jobs.

It is clear that this “create or save” phrase is now a standard and important part of the Administration’s economic message.
Greg Mankiw quickly identified both the quantitative ambiguity and [...]

The Bureau of Labor Statistics released the March employment report at 8:30 am.  Here is the least you need to know:

Net payroll employment declined in March by 663,000 jobs.
That’s a terrible number, and in line with expectations.
The unemployment rate increased from 8.1% to 8.5%.

Much of the press coverage talks about “5.1 million jobs lost since [...]

In part one of this series I reviewed some background and long-term problems facing the U.S. auto manufacturers.  I pointed out that General Motors and Chrysler, and the Obama Administration, face a more immediate cash flow problem.  The Obama Administration is in the midst of rolling out the President’s new game plan.  I’d like to [...]

USA Today editorializes today against making the tax cuts permanent, and includes an opposing view from me.
I’ll include both here.  I’ve learned that he who writes the opposing view is at a disadvantage, in that they get to see what I wrote, but not the reverse.  I thought I had anticipated their attacks, but I [...]

Some have been arguing that the growth package should extend the availability of unemployment insurance (UI) benefits.
I’d like to cover three points in response:

Unemployment benefits have never before been extended when the unemployment rate is as low as it is now, or before the economy has been in a recession.
Extending unemployment benefits will not [...]

The House passed the bipartisan growth bill (aka the “stimulus bill”) yesterday on an overwhelming 385-35 vote.  93% of Democrats and 85% of Republicans voted aye.  That vote is a direct result of the cooperation among Speaker Pelosi, Republican Leader Boehner, and Treasury Secretary Hank Paulson on behalf of the President.
The bill now heads to [...]