On “Fox News Sunday” with Chris Wallace yesterday morning, David Plouffe, senior adviser to President Obama, talked about Paul Ryan’s recently announced budget plan. You can see the discussion here with the relevant portion beginning about 9:30. With a distinct now-we’ve-got-’em! note of triumph in his voice, Plouffe said that the plan had been endorsed by the Republican presidential candidates and that, with Mitt Romney the frontrunner, this was now the Romney-Ryan Budget. It calls for cuts in government spending through basic entitlement reform, such as means testing and block grants to the states, and tax cuts coupled with limits on tax deductions that would be targeted at the rich. Obviously, the Obama team is looking forward to running against this proposal and is anxious to tie the probable Republican nominee to it.
This reminded me, as so much of the Obama presidency has reminded me of the Jimmy Carter presidency, of Carter’s re-election campaign in 1980. The country was in the throes of the worst peacetime inflation in its history, with 12 percent inflation in 1980 (with an unemployment rate well over 7 percent). The prime rate, the benchmark interest rate on loans, was over 20 percent (it’s 3.25 percent this morning). Read More