Exploiting the Atrocity
by Paul Krugman

Now it has all gone wrong. The deficit is about to go above half a trillion dollars, the economy is still losing jobs, the triumph in Iraq has turned to dust and ashes, and Mr. Bush's poll numbers are at or below their pre-9/11 levels.

Nor can the members of this administration simply lose like gentlemen. For one thing, that's not how they operate. Furthermore, everything suggests that there are major scandals - involving energy policy, environmental policy, Iraq contracts and cooked intelligence - that would burst into the light of day if the current management lost its grip on power. So these people must win, at any cost.

The result, clearly, will be an ugly, bitter campaign - probably the nastiest of modern American history. Four months ago it seemed that the 2004 campaign would be all slow-mo films of Mr. Bush in his flight suit. But at this point, it's likely to be pictures of Howard Dean or Wesley Clark that morph into Saddam Hussein. And Donald Rumsfeld has already rolled out the stab-in-the-back argument: if you criticize the administration, you're lending aid and comfort to the enemy.

This political ugliness will take its toll on policy, too. The administration's infallibility complex - its inability to admit ever making a mistake - will get even worse. And I disagree with those who think the administration can claim infallibility even while practicing policy flexibility: on major issues, such as taxes or Iraq, any sensible policy would too obviously be an implicit admission that previous policies had failed.

In other words, if you thought the last two years were bad, just wait: it's about to get worse. A lot worse.
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