The President and Vice President have this week sent mixed and confusing signals on the macroeconomic picture.  It is hard to reconcile a “stay the course” strategy with (a) new bad data, (b) “we misread the economy” and (c) “we had incomplete information.”

This seems to be part of a broader problem with the Administration’s ability to send clear, coordinated, and internally consistent signals on economic policy.

I want to distinguish between my views on sound policy and the communications critique I present here.  As an example, I oppose the House-passed climate change bill.  But that is independent of my critique below that the President is making an absurd claim to sell that bill.  There is a more intellectually valid case he could make for a bill that I oppose.  I was skeptical but open to a successful PPIP, but the Administration oversold an underdeveloped policy.

A certain amount of confusion is normal, especially in a rapidly-changing economic and market environment.  But events are not driving changes on a daily basis as they did last Fall.  Instead, this confusion is being driven by deliberate policy signals from senior Administration officials.

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