Glenn Hubbard (Columbia University), made outrageously famous by Charles Ferguson’s documentary Inside Job, is jockeying for the humble civil servant position of either Treasury Secretary or Fed Chairman under the not really so unlikely Romney upcoming administration. That is why he keeps claiming that Obama flopped the management of the crisis unleashed by the financial meltdown. Hubbard argues that the counterfactual to what actually happened, i.e. sheer historically inertia, would have witnessed a brisk V shaped recovery, a much better outcome that the stagnation brought about by Obama.
Frankly — and I am dead serious about this — the Reinhart and Rogoff reading of (eight centuries of) financial and economic history leads to conclusions that are a bit too fatalistic for my personal taste. So I’m naturally inclined to side with Hubbard on the belief that the U.S. economy would have, could have, and should have had a bouncy V-shaped recovery. That is because — of course — the Hubbard model is based on the plausible assumptions that Paul Krugman is Treasury secretary, Joseph Stiglitz the Fed chairman, and Progressive Democrats hold large majorities in both houses!
Of course, the deeper underlying assumptions of his model are a successful workers’ general strike throughout the United States, combined with a revived, expanded, and reorganized Occupy Wall Street movement duly rebranded Expropriate Wall Street Now to End This Recession Yesterday!” Way to go, Hubbard!