Richard Nixon used to joke about hiring only one handed economists. He was tired of hearing from them, "On the other hand..."
The Dismal Science is also an imperfect one because there's no perfect solution for the biggest variable in the field--human behavior. For ease of analysis, the rational actor has to be assumed, but the field of behavioral finance has shown that people don't always act in their best interests.
My problem is that I believe in certain rock solid principles with no regard for politics. One of them is that people are responsible for the consequences of their actions. The woman asking President Obama for a house a few months back? If it were me, I would have likely asked her how she got into that position and then said, "too bad" if she would have made some bad choices. The Presidency is a political position, where truth is too often sacrificed to enhance popularity.
As for the advice he's getting, I know a few of those people, and they run rings around me in terms of the knowledge and application of economics. My problem is that I've seen the one of the people to whom I'm closest sell out what I know he knows to be economic truth, to further a party line. I also happen to know hundreds of other economists--equally as credentialed and qualified--who are horrified at the economic implications of President Obama's policies, especially in the long run.
So much of the application of economics comes down to emphasis and heirarchy of importance. Here is a nice blog entry from a pretty decent economist who breaks down the differences between the two major schools of political econ:
http://gregmankiw.blogspot.com/2007/12/how-do-right-and-left-differ.html
Clearly, I'm far to the right in my beliefs. I can respect those that are on the left, as long as their disagreements are principled and they acknowledge the tradeoffs required to hold their position (as I do mine). For example, Paul Krugman makes me question everything I've ever learned by the time I reach the end of one of his articles until I remember that he and I disagree completely on First Principles. What I can't respect is the selective use of economics to falsely buttress a political point.