Lazy Faire

Obama Administration
Critics contend that the nation’s recovery from the 2008 economic crisis has been hobbled because the Obama Administration followed a fatally flawed blueprint framed by Larry Summers.   A January, 2012 New Yorker article  uncovered a 57 page memo prepared by Summers in late 2008 which shaped the Administration’s response to the 20008 economic crisis. Following Summers’s game plan the Administration advanced a too-small stimulus plan and then prematurely shifted to deficit reduction. Dean Baker of the Center for Economic and Policy Research wrote in The Guardian: In short, while the data was crying out for more stimulus, the Obama administration openly embraced the need for deficit reduction, effectively slamming the door on the prospect of further stimulus. The basis for this original sin can be found in that December memo, which, unfortunately, provided the administration’s game plan long after it should have been clear that it had been superseded by events.”

Clinton Administration 
As discussed above, Summers stint in Treasury pushing for policies deregulating financial markets largely contributed to the 2008 economic crisis.  As Treasury Secretary he spearheaded the adoption of the Financial Services Modernization Act in November 1999. His support for the Commodity Futures Modernization Act, which allowed many derivative, such as credit default swaps, to go unregulated contributed to the housing bubble and the 2008 economic crisis. “The policies he promoted as Treasury Secretary and in his subsequent writings led to the economic disaster that we now face,” wrote economist Dean Baker.