Big-Spending Conservative

By DAVID BROOKS
NYT

We’ve all heard liberal speeches on the economy. The central concern is inequality. Power and wealth tend to concentrate at the top of society, so government must stand as a countervailing power. It must defend the people against the powerful to ensure fairness and opportunity for all.

It is interesting, therefore, that when President Obama summarized his economic policies in a speech at Georgetown last week, he departed from this story line and worldview. Obama’s chief concern was not inequality. It was irresponsibility. Obama didn’t sound like an economic liberal at Georgetown. He sounded like a cultural conservative.

America once had a responsible economic culture, Obama argued. People used to save their pennies to buy their dream houses. Banks used to lend by “traditional standards.” Fannie Mae and Freddie Mac used to stick to their “traditional mandate.” Companies like A.I.G. used to limit themselves to the “traditional insurance business.”

But these traditions broke down, Obama continued. They were swamped by irresponsibility. Businesspeople chased “short-term profits” over long-term investments. Smart people spent more time manipulating numbers and symbols than actually making things. Americans consumed too much and saved too little. America became corrupted by “excessive debt,” “reckless speculation” and “fleeting profits.”

(More here.)