All day, CNBC has been teasing clips of an exclusive interview with Speaker of the House, Nansy Pelosi.
The full interview will be aired later, but from the brief snips she gives, you can get some good insight into Californianomics.
Among her claims: “…unemployment insurance, food stamps, those investments ….stimulate the economy much better than tax cuts”
That sounds ridiculous, but actually it’s fairly mainstream right now. Everyone says we need to spend-spend-spend and that saving is bad. Well, you can’t save food stamps or accumulate capital with them, right? In that pure Krugman-Keynesian sense that’s so hot in Washington right now, she’s probably right.
But we imagine she won’t be pointing to California as a shining example of economic policy in action.
Here’s the video. The food stamps vs tax cuts bite starts at 1:41. It’s immediately followed by the question about whether Obama will cap all Wall Street pay.