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Krugman writes: "Mitt Romney is optimistic about optimism...And that fact should make you very pessimistic about his chances of leading an economic recovery."

Portrait, New York Times columnist Paul Krugman, 06/15/09. (photo: Fred R. Conrad/NYT)

The Optimism Cure

By Paul Krugman, The New York Times

24 September 12

Mitt Romney is optimistic about optimism. In fact, it’s pretty much all he’s got. And that fact should make you very pessimistic about his chances of leading an economic recovery.

As many people have noticed, Mr. Romney’s five-point “economic plan” is very nearly substance-free. It vaguely suggests that he will pursue the same goals Republicans always pursue — weaker environmental protection, lower taxes on the wealthy. But it offers neither specifics nor any indication why returning to George W. Bush’s policies would cure a slump that began on Mr. Bush’s watch.

In his Boca Raton meeting with donors, however, Mr. Romney revealed his real plan, which is to rely on magic. “My own view is,” he declared, “if we win on November 6, there will be a great deal of optimism about the future of this country. We’ll see capital come back, and we’ll see — without actually doing anything — we’ll actually get a boost in the economy.”

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+41 # tswhiskers 2012-09-24 12:51

I can only think that Mitt thinks persuasion alone will win him the presidency. He certainly doesn't think much of presenting us with facts and ideas. And apparently many Reps. don't think much of his magical thinking anymore than do the public or the pundits. The debates will be most interesting. I'm waiting to see how Mitt will debate Obama without mentioning a single fact, but lots of policy. Bring 'em on!

+8 # robniel 2012-09-25 07:33

The power of magic underwear?

+6 # Bill Clements 2012-09-25 08:26

Mitt, the robot, has been tirelessly preparing for these debates and if nothing else, will have memorized gigabytes of facts and figures hoping to cover any and all questions. He has also had lots of recent debate experience during the primaries. On the other hand, we all know that thinking on his feet isn't his forte. A lot clearly depends on who is moderating and how each debate is structured.

In other words, there are scenarios that might enable this automaton to do relatively well against Obama.

Obama, I think, has to avoid coming off too professorial.

+42 # AndreM5 2012-09-24 13:11

"(O.K., I guess you could argue that electing Mr. Romney might encourage businesses by promising an end to Republican economic sabotage.)"

Not very likely.

Do you really think the R/TP'ers will stop their economic sabatoge if Willard is elected? Do you really think they will cease their push to privatize Social Security, kill Medicare, repeal ACA, underfund education, balloon military spending, force endless wars on the credit card, cut taxes for the 1%, explode corporate welfare, kill environmental legislation, declare global climate change to be illegal, and on and on???

+3 # Ma Tsu 2012-09-24 18:46

We of the National Optimists Party would take umbrage with your characterizatio n of optimism, had we not better things to do. As it is, we merely observe that there is no condition we currently confront not attended by a solution. This is a scientific observation, promulgated by many, from a great many perspectives, not naivete or a mushy-headed wetware malfunction and we recognize this may not remain the case for long if no major structural changes are implemented in society, economy and governance, but, for the time being and as inspiration going forward, we are informed by a quote from Victor Hugo: "The future has several names. For the weak, it is impossible. For the fainthearted, it is unknown. For the thoughtful and valiant, it is ideal."
Wouldn't it be more productive, more uplifting and downright more pleasant if we were all optimists? At the very least please consider the words of Winston Churchill. "I am an Optimist. It does not seem too much use being anything else.
Finally and because we must, we shall continue selling not only optimism, but utopia, whether or not society continues slouching toward Armageddon.
We invite you to visit us at nationaloptimistsparty.org.
Thank you.

+8 # Byronator 2012-09-24 20:59

Mindless optimism = delusion.

Go to Barbara Ehrenreich's "Bright-sided: How Positive Thinking is Undermining America". We've put the "cult" back in "culture" in this country on a massive scale.

+12 # Patch 2012-09-24 21:52

Paul Krugman is always so correct in his assessment of all things economic. I only hope his lack of optimism at Mitt's election victory is absolutely right on.

The thought of Mitt being at the head of this country is truly scary. My only income is from Social Security and I am, quite frankly, scared that he would end it, thus putting me and millions of others out on the street with nothing.

+2 # tahoevalleylines 2012-09-24 21:55

Frank J. Cannon's book on Mormon forays into the corporate world gives eery & prescient insight into the mind of the Mitt.

Romney's struggle to attempt open interaction with Americans even while he lets the dutiful wife treat queries about past tax statements as rude prying tells the story. Pity the wealthy donors knowing in their hearts they are throwing good money after bad; more's the pity for the smaller contributors...

We have commented before on the possibility of a Romney epiphany: recanting of the unsupported scriptural meanderings of the LDS Cult, along with a more Spirit-filled knowledge of the real Christ of fulfilled prophecy and prophecy yet to be fulfilled. Not likely!

Mitt's blatherings about the Middle East turmoil could gain some gravitas with some homework in George Gran & Avi Lipkin. M.E. & domestic oil policy comments would be enhanced with well notated conference calls to Richard Heinberg and Boone Pickens, and time with Robert L. Hirsch and Aleklett's Oil Study Group in Sweden.

Optimism is fleshed out with Civil Engineering- NAWAPA offers water and hydropower solutions for drought and aquifer depletion whether or not Mitt can get by the anti climate change clique. Mitt must know about LDS railway ownership, so that opens the door to discussing "Retail Railway" with Christopher C. Swan...

+14 # DurangoKid 2012-09-24 22:40

Mitt's policy is no policy. Just let the capitalists have their way. If better opportunities exist offshore, then move the capital to where the growth is. If US labor is no longer needed for production, then there's no need to provide support for the laborers. Better to free up that capital through tax cuts for the 1%. Then let the magic of the market direct that capital to its highest and best use, namely, making rich people richer still. We the 99% are no longer useful to capital formation. We're being let go, sacked, shown the door. So, when Mitt starts whining about jobs, just remember that he's using it as a stick to beat up Obama for not creating enough of what Mitt's ilk is trying to destroy. It's total hypocrisy. Obviously industry does not want to buy labor nor can government under the Party of No! create demand for labor through public works. The US is being bled and neither candidate seems to want to name the problem or do anything about it. Obama is only marginally better in this regard. He talks a better talk, but Goldman Sachs still holds sway. We could produce our way out of this recession except that the profit margins are too low to make it interesting. Therefore, capital goes elsewhere and more Americans suffer for it.

0 # tonywicher 2012-09-27 08:04

Absolutely correct and well stated! I recommend checking out Webster Tarpley's Anti-austerity conference in NY on Oct. 27. Check it out out at tarpley.net

+18 # Kiwikid 2012-09-24 22:47

Restoring President Obama to the White House won't be enough. Democrats need to ensure he has the backing of both the House of Representatives and the Senate. Given the way in which the GOP have behaved this last term, Obama's presidency will be a lame duck one without such backing.

-4 # RMDC 2012-09-25 02:23

Mitt is an idiot. Ryan too. The economy won't change at all. Romney and Obama are just the same on all the major issues. Romney/Ryan will try to destroy social security and medicare. They will try openly. Obama will do the same but more covertly, like this move to reduce social security tax. They both take orders from the same ruling elites who run the US.

+1 # Granny Weatherwax 2012-09-25 20:13

So what? Don't vote?
On the contrary, do vote for the LOTE. And his name does not start with Rmoney.

+1 # tonywicher 2012-09-27 08:28

Romney=Netanyah u=World War III, but it is necessary to keep up the pressure on Obama and to organize mass anti-austerity and anti-war movements. Obama has been so weak and feckless in his first for years that I'm not even going to vote for him unless the election looks close. But am nourishing the hope that if he wins big and the Democrats retake the House, he will be politically strong enough to do something, such as take on the big banks, expose the facts of 9/11 and break up the CIA. It's that "audacity of hope" that springs eternal in the sucker breast, I suppose...

+2 # tonywicher 2012-09-27 08:15

You are right to suspect that this is exactly what Obama will do. But what he said is still worth bearing in mind: you can't change Washington from the inside. Even FDR said that. He told people to organize and make him do things. FDR did require a mass movement to accomplish what he did. Obama is a politician. If there is enough mass opposition to Social Security cuts and other regressive policies, he might throw Wall Street overboard and become the people's champion. We must keep the pressure up in any case. But if the neocons get back in with Romney it's World War III time. Check out Webster Tarpley's Anti-Austerity Conference in NY on Oct. 27 at tarpley.net.

+6 # Sandy G 2012-09-25 04:05

I cannot think of a single instance of being passed through the check-out line in a single food store, based only on 'Optimism'. Maybe if I were as wealthy as Mitt (on OPM) .....

+14 # Charles3000 2012-09-25 04:07

I still like Ted Kennedy's comment about Mitt. It was a classic "on the point" comment. When Mitt challenged Ted for the senate seat in Mass, Ted noted Mitt changes so much he might even vote for me. So give Mitt the benefit of the doubt. He may see the light and vote "Obama" in Nov.

+12 # Smokey 2012-09-25 04:20

"Do nothing but smile" is the Romney plan and, of course, it was also the Reagan plan.... Although Reagan was more effective with the smiles and the happy talk.... The conservative goals for government are obvious: Reduce taxes - for the wealthy - and reduce regulations that limit big business... Beyond these two goals, nothing matters for the billionaires when they get involved with politics.... In Massachusetts government, Romney was pro-gun control and pro-choice because these positions supported his main agenda. In national politics, he has done a flip flop and changed his positions on some issues. However, he's still the same Romney and his major concerns are still the same. Key point: Like Reagan, Romney isn't interested in boosting prosperity for all. His goal is to make life easier for the rich. And the rich are doing fine in today's economy.

+3 # MidwestTom 2012-09-25 05:14

In the world of small business one has to be optimistic or one would not start or run a business. Right now the small business people I come in contact with are at best neutral. They fear additional regulations and taxes, and they universally think that QE 3 is a big mistake; which will only widen the income gap.

+7 # Bill Clements 2012-09-25 05:49

Romney/Reagan: cotton candy happy talk brimming with that particular quality of GOP prescience that forever sees America's best days (only) under a Republican administration.

And this is classic Republicantalk: we'll see capital come back without actually doing anything!

So, you see, there really IS a reason that Romney hasn't and doesn't offer any concrete plans because once he's president, things will just magically get better all by themselves.

Not unrelated to Norquist suggesting that as long as he's smart enough to sign his own name, all the heavy lifting will be done by a Republican-cont rolled Congress.

+5 # reiverpacific 2012-09-25 06:59

"As many people have noticed, Mr. Romney’s five-point “economic plan” is very nearly substance-free. " [Quote from article].
Well now, that's a real clue as to why Twit still has some support in the "Fragmented States" in spite of traveling around the country with his shiny foot constantly inserted between his shiny teeth.
I mean what's so different from the owner-media that has most American's in it's thrall? "Substance-free " is the key to getting through to the opiated populace here. For Gawd's sake, don't ask 'em to think!

+2 # carp 2012-09-25 10:00

Ronald Reagan enjoyed economic success for this country once the international recession was over about halfway through his administration. Nixon, Ford and Carter's entire presidency operated under this global recession. Mitt is counting on this as well. I wonder how capital is going to come back to this country? because Mitt asks them too?

+3 # lexy677 2012-09-25 19:12

@carp:
"Ronald Reagan enjoyed economic success for this country........?
By piling up more debt in 8 years than all previous presidents combined in our two hundred year history before him; including George Washington? and starting the massive transfer of the country's wealth from the middle to the upper classes?. When are you people going to realize that Reagan is the "remote cause" of all the economic problems we have today? He was "the first nail in the coffin" as I told Alan Cranston in California when he was elected.....as usual through Republican treason and "win by all means" dirty tricks and an unhealthy dose of racist dog-whistles.

+8 # fredboy 2012-09-25 10:02

SSDD. Let's see, the GOP was in charge of the White House, Congress, the Supreme Court and the Federal Reserve when:
1. the government failed (or refused) to protect our shores or people on 9/11...
2. we entered a war based on lies...
3. our government failed to help the victims of Katrina, letting them rot in the heat for five days...
4. created a housing bubble, ignored it, then let it burst...
5. allowed the economy to almost die in the fall of 2008, then demanded $700 billion in unmarked bills...
Anyone willing to give them another crack at leading our nation must be on crack, or out of their frigging mind.

-8 # jtatu 2012-09-25 11:06

I think Mitt was exactly right. If he gets elected we will see a significant boost in the economy for that reason alone. The economy is a lot about how investors, entrepreneurs and consumers feel.

+3 # reiverpacific 2012-09-25 17:15

Quoting jtatu:

I think Mitt was exactly right. If he gets elected we will see a significant boost in the economy for that reason alone. The economy is a lot about how investors, entrepreneurs and consumers feel.

Monkey see, monkey do!
However, you are right in as much as the so-called 1% or those who an still afford to invest 'cause they know that they'll be bailed out even if they screw up their gambling with what is left of our (your) funds and holding their own back for anything but the common good.
THAT's the real meaning of Citizens United and that's what must be addressed face to face before it is seen for what it is.
The 90's, when everybody and their dogs (including my dear wife, much against my wishes and advice but persuaded to invest some money she had been left by an "old family friend" who was a broker) had stocks, are over now and it's all been concentrated in just a few slimy hands.
But Twit is actually managing to piss-off even some of his investor class buddies with his obfuscation, finger-in-air posturing and flip-flopping.
Do you really want another empty suit - empty head in the white House, maybe even more so than Dimwits the younger -and I thought that he had reached an all time low for the US.

+3 # Granny Weatherwax 2012-09-25 20:15

You mean the phony economy entirely based on beliefs, not on actual production and creation?

For if you mention real creation and production, I wonder how less roads and education, less health care and help fr the needing will do anything positive.

Compassionate conservatism, really!

+3 # Regina 2012-09-25 11:46

We must not elect as our president an idiot who (1) can't understand that ocean levels will rise if glaciers continue to melt; (2) can't understand that people who don't have federal income taxes to pay are earning too little for a comfortable life; (3) can't understand why airplane windows do not open; and (4) can't understand why we must not trot off to yet another war just to proclaim our "leadership" to the world. Understanding how to manipulate money and markets is not enough -- and I'm not sure he understands even his own wealth, even though he can count it.

+2 # John Steinsvold 2012-09-25 16:58

An Alternative to Capitalism (since we cannot legislate morality)

Several decades ago, Margaret Thatcher claimed: "There is no alternative".
She was referring to capitalism. Today, this negative attitude still persists.

I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:

http://evans-experientialism.freewebspace.com/steinsvold.htm

John Steinsvold

“Insanity is doing the same thing over and over and expecting a different result."~ Albert Einstein

-3 # dkonstruction 2012-09-26 11:14

the irony in this piece is that, as an orthodox Keynsian, Krugman sees the cause of the current economic crisis as "pessimism" i.e., he sees the crisis as being rooted in a decline in investment which leads to a decline in aggregate demand (i.e., it is essentially an underconsumptio nist view which is why alot of his pieces are that we need more gov't spending to boost aggregate demand). what causes the decline in investment? "Pessimism" i.e., it is due to how people are feeling (not what they are doing or what is really being done in the real world economy). So, in a sense, Krugman and the rest of the Keynsians (Reich, Stiglitz) etc., are the flip-side of Romney's "Optimism." What Krugman and the rest of the Keynsians (as well as all of the rest of the economic schools except for the marxists) never look at is profit or more precisely the rate of profit and therefore don't see or understand that the crisis is fundamentally a capitalist crisis of profitabilility which is something you cannot simply spend your way out of as Keynsians suggest. History has demonsrated over and over again that the way that capital overcomes these crises is either by giving in to long periods of sluggish growth (japan) or by a large destruction of capital that then restores the system as a whole to profitability (as was the case in the US during the great depression). If this is so, then we have to start having a very different discussion than even the one Krugman is having.

0 # RICHARDKANEpa 2012-12-05 05:37

I really like the way that only in Reader Supported News articles are considered worthy of commenting on over a month old.

Suddenly negativity is the way to get blog spear notice.

Trying to be negative is overwhelming,

To a small part Positive Thinking gets mixed up with New Age that is getting decimated by Buddhist slaughter in Burma

Anyway I see a lot to be positive about besides Romney and his base loosing decisively,

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