Krugman remarks: "Since all the evidence says that elections depend on the rate of change of unemployment, not its level, this is actually bad news for Obama: he’s setting himself up for an economic stall in the months leading into the 2012 election."
Bill: The real problem for O is that the Repubs will beat the crap out of him in 2012 for increasing the deficit.
He'll say "But, but - Repubs would not do a deal without increasing the deficit". True, but no one will listen. The O administration does not know how to communicate, as DeLong has said many times (eg). Witness also the overwhelming anti-HCRA propaganda. What was said by the administration in support? A few random appearances by Christine Romer (who is really good!!) spouting mostly hope. Same from O. C'est tout.
Update: C'est not quite tout. Krugman: "To the extent that Obama has had trouble selling that [HCRA] plan, “purists” weren’t a factor; his own lack of effective messaging was."