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The Daily Grind

10:23 AM, Aug 9, 2010 • By MARY KATHARINE HAM
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Keith Hennesey explains who advises the president on economics.

The Daily Grind

Time to admit Obamanomics has failed: "It's no coincidence that Christina Romer, chairwoman of the White House Council of Economic Advisers, announced her retirement the day before Friday's brutal unemployment report. With 131,000 more jobs lost in July, and downward revisions of 97,000 for the previous two months, it's easy to see why she would start looking for the exits."

Nope, higher dividends and cap gains taxes aren't "fair": "Think of the economy as a pie split among workers, savers and the government, with the government's slice fixed. The savers' slice will equal the after-tax return on each unit of the capital stock, and what's left goes to workers as after-tax wages. The fairness advocates in effect claim that low tax rates on dividends and capital gains increase the share of the pie that goes to high-income savers. But the low tax rates increase the absolute size of the workers' slice by making the entire pie bigger. That's because low tax rates encourage capital accumulation, productivity and wage growth."

Kirsten Powers: Michelle Obama's bad p.r. trip.

The "regional rump" party? "If the popular vote in the North should turn out to go narrowly Republican, as it did in 1966, it could be disaster for Democrats. They lost a net 38 seats in the North that year, when they held just about as many seats Northern seats as now. Not a happy scenario for Democrats. But not out of the realm of possibility."

Primary preview: "The marquee contests on Tuesday are the Democratic (Michael Bennet vs. Andrew Romanoff) and GOP (Jane Norton vs. Ken Buck) Senate primaries in Colorado, and the New York Times frames them as "shootouts that could provide the best test yet of how deeply anti-establishment, anti-Washington sentiment is running this year." Indeed, there isn't much -- issue-wise -- separating Bennet and Romanoff, or Norton and Buck, except for the fact that both Bennet and Norton are the choices of the Dem and GOP establishments and, well, Buck and Romanoff are decidedly not."

The public servants of Bell, Calif.: "Those cities have largely poor, immigrant populations that are too busy working to pay close attention to City Hall, which means they can be easily exploited."

What next on the Gulf?

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