This is darn scary and something that has to freak out even those friendly to Obama (especially if you agree with mainstream Democrat economic advisors on the role of AD). And it isn’t a single data point as Brad Smith at the Division of Labor blog points out. From Ron Suskind’s book Confidence Men (via Division of Labor):
“Both [Chair of the Council of Economic Advisors Christina Roemer and National Economic Council Director Lawrence Summers] were concerned by something the President had said in a morning briefing: that he thought the high unemployment was due to productivity gains in the economy. Summers and Romer were startled.
“What was driving unemployment was clearly deficient aggregate demand,” Romer said. “We wondered where this could be coming from. We both tried to convince him otherwise. He wouldn’t budge.”