The point is that since Reagan, Republicans cannot concede ideologically that the state can be a beneficial actor in economic/industrial/health policy whereas Obama/Democrats have been arguing (ineffectively against a hostile congress to date) that increased regulation/intervention is required for the economy to perform better. In practice, Romney's "solution" might not have been all that different, but just like with Romneycare, he has to emphasize the difference with Obama to appease the Republican base. At the moment he is failing to convince the wingnuts and losing ground with independents all at the same time. Practicality be damned, its all about perceptions and appearing to be on the right side of wedge issues - "freedom" vs. state intervention, regulation, state funded abortion, contraception, and state approved gay marriage etc.

It is conveniently forgotten (by both sides) that Bush approved the first bail-out and that it was Cheny who said "deficits don't matter". Its all about purity on increasingly ridiculous wedge issues that defines candidates, as the rise of Santorum makes clear.

Index of Frank's Diaries