President-elect Barack Obama arrives to speak about the economy, Thursday, at George Mason University in Fairfax, Va. (Charles Dharapak/AP)
Obama’s case for action
Spending big on the economy is less risky than doing too little, he asserted Thursday.
By Peter Grier | Staff writer/ January 8, 2009 edition
Reporter Peter Grier talks with CSMonitor.com's Pat Murphy about President-elect Obama's speech on his economic stimulus proposal.
Washington and New York
Yes, a new US stimulus package will be very expensive. Yes, the federal budget is already burdened with record debt. But only Washington has the resources to do what needs to be done, and the risks of inaction, or too little action, are far greater than those of spending too much.
In sum, that’s President-elect Obama’s message to the nation, as he tries to prepare the ground for quick congressional action on his proposal for a massive new economic stimulus program.
In many ways, Mr. Obama’s push is unprecedented. He hasn’t yet made a single phone call from the Oval Office. But he’s hard at work trying to build voters’ trust, not just in his administration but in the capabilities of government itself.
“The American people are deeply ambivalent at this moment,” says William Galston, a senior fellow in governance at the Brookings Institution in Washington.
“On the one hand, they broadly support the new administration and want it to succeed. On the other hand, there is deep skepticism about the ability of government to do the right thing and to do it effectively.”
Obama on Thursday capped a week-long push for his economic approach with a speech that made his most detailed case yet for the forthcoming financial rescue package.
He warned that the economy could further deteriorate, plunging the nation into dire times, absent quick action by Washington on a huge stimulus package.
“Only government can break the vicious cycles that are crippling our economy – where a lack of spending leads to lost jobs, which leads to even less spending,” said Obama.
His stimulus package is still evolving but is expected to total $800 billion or more. It will be a conglomeration of tax breaks, infrastructure projects, aid to state and local governments, and other initiatives, according to transition officials and legislators.
Energy will be front and center
Among the specific goals it will attempt to encourage, Obama said Thursday, are a doubling of domestic alternative-energy production over the next three years, an improvement in energy efficiency for 2 million American homes, the computerization of US medical records within five years, and the expansion of broadband Internet access across the nation.
“Yes, we’ll put people to work repairing crumbling roads, bridges, and schools by eliminating the backlog of well-planned, worthy, and needed infrastructure projects. But we’ll also do more to retrofit America for a global economy,” he said.
Transition officials had hoped Congress could have a bill ready for Obama to sign upon his accession to the presidency on Jan. 20, but that timeline has slipped to mid-February at the earliest.
Many economists support the idea of a new US government stimulus effort to pull the economy out of the current slump. Even Harvard economist Martin Feldstein, a Republican who advised President Ronald Reagan, said as much during an appearance on Capitol Hill Jan. 7.
“We’re going to need a fiscal stimulus in the form of tax cuts and increased government spending,” Mr. Feldstein told a congressional panel. “It pains me to say that because I’m a fiscal conservative who dislikes budget deficits and dislikes increases in government spending.”
But US funds already committed to the rescue of mortgage giants Fannie Mae and Freddie Mac and other financial institutions have helped drive the federal deficit so high that many on Capitol Hill are gulping at the idea of almost $1 trillion in new government spending.
On Jan. 7, the Congressional Budget Office estimated the 2009 deficit at a record $1.2 trillion. A new stimulus package could send that to $2 trillion, notes Chris Edwards, tax director of the Cato Institute.
“Even the biggest critics of Washington’s spendthrift ways never thought they would see a number like that,” says Mr. Edwards, who opposes the stimulus package.
Wary reaction from GOP lawmakers
Republicans on Capitol Hill remain wary of the bill’s price tag, though many acknowledge that the economy needs help.
“At the end of the day, how much debt are we going to pile on future generations?” asked House Republican leader John Boehner in reaction to the president-elect’s speech.
Obama’s concerted efforts to push for his package appear designed to counter such hesitance.
That may not be too surprising, given the current climate of economic malaise. Still, the amount of action involved is unprecedented for a president-elect, says Julian Zelizer, a history professor at Princeton University in New Jersey.
Obama has been careful to note that the United States has only one president at a time, particularly when he’s been asked about delicate foreign-policy questions. But on the economy, he may already have become the defacto chief executive.
“There is something good here: the idea that a president-elect is getting his act together early on,” says Dr. Zelizer.
Obama is getting a certain comfort level with presidential responsibility already – and with getting feedback on his ideas. At the same time, the more he lays out his plan, the more he provides targets to his opponents, says Zelizer.
They “can start to put together a plan to take him on,” says the Princeton professor.
- Staff writer Gail Russell Chaddock in Washington contributed to this report.
Comments
2. indi | 01.08.09
When Bush spent big for national security and to protect our country, the Democrats cried the huge expenses and its contribution to the deficit. Now Obama want to spend huge to pump up the economy. Both are probably necessary and the national security is probably a hair more important than the economy spending. The biggest hypocrisy here is that as long as it is Obama spending it, it must be right and as long as Bush is spending it, it must be wrong. The card that the Democrats hold is that if Obama succeed, they will take all the credits and if they fail, it is all Bush’s fault. Obama alone cannot make this happen, he has to fight the old school politicians such as Pelosi and Reed whom are corrupted by the old system and would not and cannot get out of the same old partisan politics. Good luck, Obama, we want you to succeed. But if you fail, have guts to admits it.
3. wm cannon | 01.08.09
It is time to be americans, one people, one nation, and put all our fears behind us, let Obama do the job we elected him to do, if what he does is wrong , then history will learn from it, if right then history will never forget his courge to do what he thougth was best for our nation, or we can just sit back and worry and let our gov do nothing and balance our bugit while the real gov, the people will stand to loose everything that those before us worked for, is it better to take the chance and be wrong or do nothing and think that is right.
4. tom morrison | 01.08.09
Where is the money coming from??????????????Are we borrowing more and more or are we printing up more money making our currancy less valuable??The more money we borrow the deeper that hole becomes. We all are going to pay for this..BIG TIME.
6. TDH | 01.08.09
I don’t want to sound to nasty, but the idea that Government is the only way to solve this problem.Are you nuts/ Government got us into this mess.nstead of spending why don’t you first cut taxes all across the board on every one by 5% cut corporate taxes by 10% to keep in line with the rest of the world. Cut Government spending by 10 to 20% and use that money for infrastructure. People make the economy work not Government.
7. maniaci | 01.08.09
With all due respect, Jvpski, the only pathetic and misinformed comments made today were yours and not Obama’s.
8. gobama | 01.08.09
Misinformed and worse still ignorant is what I would use to characterize most Americans. If you can vote for Bush TWICE, then I am not sure what to say….
Get real for once and shelve your age-old ideas. Unfortunately the economy or the rest of our problems here in America do not run scared when faced with sheer military might..of course, thats the only thing we have a lot of. Idiots riding gas guzzlers, unaware or indifferent to what happens in Washington or the rest of the world and clinging to religion/race and some stupid sense of entitlement to our power in the world is what we have now. For once, we have a president that can THINK, is smart and has some perspective..does not think every issue can be solved by just thinking Good vs Evil or lets bomb them. No one can predict what happens but to call him pathetic and misinformed…boy, I hope there was a way folks like you could go back to having Bush for a president while the rest of us MOVE ON!
9. Bob | 01.08.09
At least he’s trying to get us out of Bush’s great depression. I guess that some people are upset that Obama doesn’t quietly pretend that there isn’t a problem and act like things are just fine.
10. Thom | 01.08.09
Obama must run down the economy to create his “burning platform”. That is the only way to drive people out of their comfort zones and accept massive change. Me… I’m not buying it. The economy will fix itself if you let people keep their money and decide whether to save, invest or spend it. Either way, the money gets put to work more effectively than Uncle Sam can do it. Even if I believed the news was as bad as he states it, that still doesn’t equate to buying into his misguided notions on green collar jobs, bailing out the UAW, and forcing banks to make more loans when we are busy using tax payer dollars to prop up their balance sheets just to keep ‘em solvent.
11. jo | 01.08.09
To me the main thing wrong with the economy is the soaring national debt which has caused inflation, a weak dollar, and an extreme rise in the cost of living for most people. Wages are really relative to the cost of living and it’s not higher wages we need but a lower cost of living like we used to have 30 years ago. In order to achieve that the national debt must be gotten rid of and brought back to 1970 on down levels. Defecit spending and increasing the debt will continue to fuel the problem and the cost of living will dramatically keep rising. For example if the national debt goes over 20 trillion by the time Obama leaves office in 8 years if he gets re-elected for a 2nd term the cost of living would be so high that the average rent for an apartment nationally might be as high as $5,000 a month with $2,000 grocery bills. Hardly anybody makes enough money to cover those type of costs.
12. C | 01.08.09
jvpski–I disagree. You shouldn’t base your criticisms just on the fact that you are still mad you lost the election. His proposing a plan so that it can be worked on, so that the critics can take it and offer opposition, so that it can be built together. This is a far reatching idea for restarting the economy. Wev’e already spent billions making sure that already-rich bankers didn’t lose their jobs after robbing america blind. I say, lets give some back to the people by providing jobs and improving infrastructure. You don’t offer one counter solution to his plan. Just an ignorant rant. Please, do tell what you would do to fix the economy.
13. Jeff R | 01.08.09
jvpski are you kidding? The current administration has been ruining the USA as we know it for years. Obama is merely getting dropped into the deep end. Cut out the 12 billion per month the Bush administration has been spending on Iraq and we’ll have plenty of money for economic stimulus.
14. orion | 01.08.09
“Don’t blame me I did not vote for him.”
There’s an argument that rings hollow in the face of adversity. It’s the Republican rule of ‘let big business save us all’. We tried that. Look where it got us.
16. Atlien | 01.08.09
Jvpski, your attempt at doom and gloom is the the same thing you shun in your comments about the direction of the old administration. How simple would it be for you to honestly assess this situation and speak to that, rather than focusing on a person. This country needs help from this administration and the likes of you and those that focus on nothing constructive are the reason he was elected to office in the first place. I hope we americans hold all politicians accountable in the upcoming years. But more than that, If people who think and believe what you believe are people who hold positions where decisions critical to business are made, we’re certainly in worse shape than any stimulus package can correct. You certainly missed the boat with your childish crybaby jabs. Grow up and wipe your snotty nose.
18. Alice Wolf | 01.08.09
Lynden laRouche is the only economist who has come forward with a proper
plan to get not only the US but the rest of the world out of this systemic
financial collapse. Log onto the larouchepac.com website and start reading.
There are also some interesting videos you can watch and get educated by.
Obama does have members of his transition team who are cognisant of laRouche,
and we can only hope and pray that they will come around to his suggestions.
19. ozzy | 01.08.09
jvpski Look around. The nation’s economy is already ruined. Thanks to the deregulation policies of your obvious political party. It is you who are misinformed. Get out and talk to people. They are hurting. I suppose you would have been opposed to FDR’s plan in the 30’s as well. You and your ilk should be thankful that this tiny revolution came about in an orderly way. Not all of us democrats are tree hugging peaceniks.
20. DB | 01.08.09
I’m confused jvpski…
What exactly are you so upset about? Obama winning in general? That’s the way it seems… Having taken macroeconomics I can promise you that an increase in spending is the most effective way of stimulating an economy, whether you like it or not. That said, I’m still thoroughly confused about your rant… He’s going to ruin the USA by investing in its people? He’s going to ruin the USA by finally attacking the unemployment and economy head on?
I understand, your boy McCain lost. I just feel like most people get over things in a quicker amount of time. What’s the point in being upset that the POTUS isn’t the one you voted for? I’ve never understood why people can’t simply back the person who is working for you, regardless of your political ties. I didn’t start hating Bush’s term until he proved to me he was a bad president. You should give it a try — support Obama until he gives you a reason not to. You owe him that…
21. David | 01.08.09
This man is completely clueless on finances. The issues around his birth certificate only proves it further. They have spent $800,000 - $1,000,000 in legal fees, fighting court cases instead of pay $20 to get the vaulted copy many people want to see. He is either hiding something with his birth certificate, or a million bucks is nothing to him and the DNC.
One of his promises was tax cuts. What a joke if you see what he is proposing to citizens. Basiccally lowering Federal tax rates, so an individual gets $10 a week more in take home pay, which would be $20 for a family. That’s the big $500 for an individual or $1000 for a family he is talking about. Some people will notice a difference and appreciate it, but I don’t think most would notice it. His “change” he ran on, meant he was going to give you a little pocket “change”, and everyone seemed to think if they voted for him, the mortgage would be paid, and they would not have to worry about putting gas in their car.
He is already backtracking and not even sat in the oval office yet. A lot of us looked at his entire campaign, and wanted details in which he just harped “change”. Now we are in for years of misery in this country with all the people who elected a TV image instead of someone with substance.
God help us all….
22. orrealman | 01.08.09
juski….you described bush perfect in the first paragraph…had republicans not forgot they were supposed to be fiscal conservatives the last 8yrs…..we wouldn’t be in this mess
23. jvzandt | 01.08.09
The best thing Obama could do is get out of the way, give people and corporations who pay income taxes a tax holiday of a few months (spending the same amount as the bail out), reduce corporate taxes, and eliminate the CRA. If he did that, the people would get the country on the fast track. His energy proposals do not include off-shore drilling. So, here is a situation where a guy has a house with a basement full of gold, has bills nobody could ever pay, is accumulating more bills, and refuses to disturb the gold. By drilling off-shore, USA companies, state and local governments, and the federal government all win. When his panacea of solar powered vehicles, wind driven power plants, and lower oceans is realized, we sell the oil to other countries and take the profits to pay off the deficit. Jobs are created, wealth is created, and the economy is back on track. Oh, I remember, we can’t drill because it might allow people to drive cars and save money which would cause global warming in a year when Alaska and the polar bears are freezing with record lows. Oh well. Lets just become victims of our own stupidity.
24. david | 01.08.09
Misinformed? This guy is surrounding himself with the some of the most intelligent and ‘experienced’ people in the world with dealing with issues such as these. Not to mention he has the full support of some of the United States most successful entrepreneurs and investors, Warren Buffet and T. Boone Pickens, to name a few.
jvpski, I am afraid you are sadly misinformed. In case you haven’t read a newspaper, or turned on the news (probably not since they are all obviously pawns of Obama), or seen friends of your being let off from their jobs in numbers you can’t quite compare to…this recession is a little different from the one you cite.
Messiah, false prophet? Please. He’s hasn’t even been in office one day. Don’t talk down the economy. You must mean like, “our economy is fundamentally strong.” Right? Come on! It’s that perspective that has gotten us entrenched in bullshit so much we have to jumpstart the countries economic heart with 700 billion dollars!!! All the while Osama Bin Laden is chilling out in Afghanistan laughing his *** off at all of us.
Dude…Ma’am, can we just not throw stones until we’ve at least tried something?
25. Jason | 01.08.09
That’s what happens when the burden of a bad economy is left on a new president. Mistakes by our current president has left Mr. Obama no choice but to take extreme measures to heal the American economy. We have been spending way too much on foreign affairs and on fruitless war efforts. It’s time for our country to re-invest in itself and restructure itself for the future global economy. Too much time has passed, and money wasted the last few years invested in everything but American infrastructure and the American people.
It’s time to re-focus our efforts and our spending. Do you want the United States to be left behind in the next ten years?
26. CosmicWizard | 01.08.09
Since I’m not too fond of the USA as it currently stands, I welcome the unfolding changes. IMO, the USA is in the early stages of changing for the better, even though it may not appear that way in the eyes of many citizens. I think we did the right thing by electing Obama. He seems like a good fit for the times. From my perspective it’s a plus that he doesn’t have a wealth of business executive experience. Just take a look at the mess created by all of those business executives ruining the country for the past 8 years. Obama, a breath of fresh air!
27. tysonscox | 01.08.09
Let the entire deck of cards come crashing down. The more we borrow the more dire our situation will become. We’ve been dancing in the streets and racking up our credit cards. Now it’s time to pay the band. Now our bellies are fat and our priorities are superficial. We pay people who move money from here to there 5 times what we pay a person to produce a good.
What’s going on is wrong, what the government is doing is an act of desperation and it’s not going to help.
28. spars | 01.08.09
Seriously let’s grow up. All authority is placed by God. So whether you voted for Obama or not… He has been given authority by God. So now instead of complaining about how inexperienced he is or how much we disagree with his plans, let pray that God will raise him up to be the best leader our nation has ever had. In the Bible the Lord has spoken through a donkey, so I believe that he can use someone like Obama to bring about a great change in our nation… and no, I did not vote for Obama.
29. Redfrog | 01.08.09
Sounds good so far. I hope it goes far enough.
The US has been ignoring Infrastructure for 30ish years for the most part. We need to replace 50+- year old infrastructure; bridges, roads, schools, the list is huge. It’s a lot of jobs…
Energy Efficiency: I’m tired of the US kissing up to all the OIL producers. Let’s eliminate imported Oil.
a. Very generous funding for R&D for energy efficiency.
b. All federal buildings, bring these up to current efficiency standards, cover them with solar panels etc. Provide tax incentives for State and Local to do the same. This is a very straight forward goal with huge long term savings.
c. Solar, Wind, alternative energy etc. tax credits. Include apartment complexes not just single family homes.
d. Require all federal cars, trucks etc., [except military] to use alternative something within 5 years. Stop all purchases of gas only cars within 18 months.
Government Efficiency. I hate to shock you but it’s a good 20 years behind industry. Time to reorganize etc.
The above stuff is not republican or democratic. It just makes sense.
30. David | 01.08.09
Sorry, but Bush did great damage seeking WMD which did not exist, destroyed a country, and is continuing to spend BILLIONS of taxpayer dollars for his mistakes. Furthermore, he destroyed international relations with many foreign countries through his ignorance and abuse of the English language, coupled with his over the top ridiculous ego, his inability to understand when he was definitely in the wrong, and refusal to admit his inadequacies…ever!
31. Robin from Colorado | 01.08.09
America is very fortunate to have a leader of the stature of Obama taking the reins during this turbulent time. Pragmatic, thoughtful and deliberate - he listens to all sides - evaluates and decides. Certainly a 1st rate education laid the foundation but also a life story of modest means and strong, compassionate parenting helped him develop his leadership skills. My experience as a small business owner has exposed me to many different kinds of people with different skill sets. The word that comes to mind when describing Obama is BALANCE - not getting too far out in any direction. I have grown weary of politics and its inherent hypocricy and shallow narrow mindedness. Obama is a transformational in that while he knows how to play the “Political game” to win, he also sees the weaknesses and human frailties in those that get caught up in it. Let’s hope for our countries sake, that thes “country first” repugnigans actually act as if they really do.
32. anotherview | 01.08.09
Whoa, all. This fiscal crisis has erupted on the watch of Bush II, from the actions and inaction of his administration. Bush II in cahoots with the U. S. Congress has worsened this crisis by responding to it out of political fear growing from the fear of banks that they will not get repaid if they lend money. In turn, the flow of credit has virtually stopped. Foolishly, the central government has failed to attach strings to the HUNDREDS OF BILLIONS OF TAXPAYER DOLLARS going to fearful banks to force these fearful banks to lend money again, at the pre-crisis level. Blah, blah. BHO has been handed this crisis. His remedies, as reported here, fail to address how to restore the flow of credit. BHO apparently assumes economic stimulus via spending HUNDREDS OF BILLIONS OF TAXPAYER DOLLARS will induce economic recovery. Where will this cash come from? Foreigners will buy the central government notes. This situation reminds me of the Reagan years, when the government spent its way out of the Reagan recession by using, effectively, the government’s credit card. The national debt soared while Reagan wore his practiced smile. If BHO had the necessary spine, then he would first take the steps required to force the fearful banks to resume lending. Instead, BHO has found a way to fund his promised massive spending programs, by using the cover of the Bush II credit crisis and the resulting fear among banks, politicians, businesses, and the American populace, with the knee-jerk connivance of the news media.
33. Ted Williams | 01.08.09
Fundamental changes are needed in the way the US does business. All My life I’ve watched a ” Boom ‘n Bust” economy help some get rich in “Boom” while the lower economic classes pay for it during “Bust”. Out country is a blend of Socialism and Capitalism. Pure socialism alone inhibits incentive, while unchecked capitalism creates what we are experiencing now. Capitalism with the governor of smart regulation can keep a check on greed on all levels. After reading some of the recent comments here, I think people should remember Obama hasn’t even taken office yet.
34. James | 01.08.09
I see most people still don’t know money is debt. With shrinking commercial debt created by fractional reserves that leaves actual reserve notes to fill the gap. Without government debt we will have no money. Simply suspend the income tax and the problem is solved. Public debt is our money. Federal reserves are backed by government obligations and nothing more. If you fail to understand this you will not understand the problem. The fact that we should no have a debt based currency is besides the point. Yes, we need trillion dollar deficits which is nothing more than increasing the money supply.
35. mam | 01.08.09
Mr.jupski, in case you have not noticed, the USA is already fiscally ruined thanks to Bush/Conservative fiscal policies.
I also realize that honesty and candor from a president is unusual, but it is refreshing to get some straight talk for a change, rather than hearing an constant 8-year drone of “the fundamentals of the economy are strong”. Granted, once the economy was long past meltdown-mode we went from “strong” one day, to “crisis” the next. Not exactly the preventative action plan i was hoping for.
President Bush started his first term with the debt at 5.7 trillion. Now it stands at almost 11 trillion! GB single handedly added 5.3+ trillion in debt, almost doubling the debt he started with. It’s startling.
http://www.lafn.org/gvdc/Natl_Debt_Chart.html
If i have to hear one more piece of fiscal advice from an ignorant Conservative, or some FUD about Obama/Democrats overspending, or causing financial ruin - i think i will puke.
Btw, what do you suggest Mr.jupski? Since you are so much more well informed than every major economist that is calling for aggressive stimulus, maybe you should enlighten Mr.Obama?
36. C.Lewis | 01.08.09
I read an interesting quote from Sen. Kent Conrad, chairman of the Senate Budget Committee and a North Dakota Democrat - “For example, a jobs credit, that seems improbable to me that if you give jobs credit to businesses in this economic environment that they’re going to hire people to build things that can’t sell,” Given the source I would expect a better understanding of our economy.
The US is a service economy, we produce very little and employ far fewer to ‘build’ things than we do to service - a quick (very quick) search finds in 2002 excluding farm jobs 82% of all jobs in the US were service and only 13% were manufacturing jobs. In a slow manufacturing economy consumers keep things longer which can lead to more service work; minimal? Probably, but hiring one more person for 30k to do 60k in service work a year would also generate 3k to the employer. Sounds like a good deal to me.
I’m not an economic Guru, but I do know if you can create new manufacturing jobs - new ones like heavy infrastructure work, not dying UAW jobs - and offer a credit to companies creating these new jobs the companies are benefiting again - another good deal.
Anyway, the whole point is today’s Politicians have lost touch with reality. The struggles we face will not be solved through political squabbling; from politicians or the rest of us. Change won the 2008 Presidential Election; lets just hope it really happens!
37. Dave | 01.08.09
IMHO what we are experiencing is the collective consequences of most people in this country, and especially our government, living beyond their (and the planet’s) means.
What is needed is a massive behavior change. Stealing from our kids’ and grandkids’ piggybanks transfers our deserved but survivable pain (and subsequent behavior change) from us to them. However the pain that they experience will be many times what we are/will/should be experiencing, and may in fact not be survivable.
38. Robin from Colorado | 01.08.09
jvzandt, you lost and I synpathize with your pain. It must be hard for you to accept Obama - judging from your comments. My parents have been going through the same mourning process: anger, denial, reflection and with time finially acceptance. Your arguments about the economy are pretty shallow i’m afraid. You might want to broaden and balance your reading material to more fully understand why we are here - history does repeat itself and it helps to have some knowledge of our past. Best of luck to you and I hope you get better soon.
39. bobbyD | 01.08.09
I think we can all agree that jvpski is not too bright or eloquent, and his/her comments are ignorant and inflammatory. Still, it is unwise not to be skeptical about such a massive expenditure at a time like this. The Wall Street bailout seems to have done little to improve the situation, but the debt it placed on taxpayers may remain for decades. Now the deficit may redouble to 2 trillion. This could be a solution to the recession, or it may be the final disaster in a year that could destroy the American economy as we know it– the perfect economic storm. We have a very weak and unstable economy, and unprecedented support for new debt that may soon be so staggering that there is no longer hope of recovery.
40. Pat | 01.08.09
At this point forward, money is going to be worth less each day. If that is a steady decline then we can plan for it and make long term contracts that stick. But if the dollar collapses, then everyone is going to be sitting around without meaningful contracts until the value stabilizes. Why would you work if the money you are promised at the end of a job isn’t worth half as much as when you did the job. Might be healthy to be paid a days wages for a days work again. But if fewer people are willing to commit to long term contracts it will force a further contraction of the real economy, even if GDP goes up in dollar terms. I don’t see a good way out of this, a lot of paper wealth is going to be destroyed during the next few years.
41. joe | 01.08.09
Obama will clearly solve all our problems. Give him a chance. Just look at all the good he was able to accomplish in Illinois. Hah, made you look………..and there was nothing to see, suckers.
He has accomplished a lot as far as rising to the top, and for that he deserves enormous credit. However, he has yet to accomplish any actual work.
This guy is the greatest con man of all time. When you realize you’ve been conned, it’s way too late.
42. Jay Ryko | 01.08.09
folks, see this: our national security IS the economy. This “US stimulus package” is not just Obama’s or the Democrats idea. Lot’s of republicans support this. Keep up with the news. Remain calm. “Steady the course….”
Obama is more receptive to “your side” than you think. He’ll actually listen to opposing opinions.
and yeah, I did vote for Obama.
43. Lokiforever | 01.08.09
Cutting taxes or offering a tax rebate is not enough to stimulate the economy. This won’t increase demand for american autos or steel.
It worked in 2001, when Bush offered a Tax rebate of $300 to individuals, $600 to couples/families when we were in a mild recession. So now it’s a $1000.
Economists who support monetary policy first as the proper action - can’t argue with the need for fiscal stimulus, since the Fed set the int. rate to effectively zero recently.
#10 Tom - The conomy will fix itself if we let people keep their money, as they will invest, save or spend it. How does thsi help the unemployed? What about the banks that have stopped lending…does that play into your thinking?
AAlso, it’s the Bush administration that has come to the rescue of Detroit (And by extension the UAW).
#11 Jo. We are not currently experiencing high inflation, nor have we for any extended period of time in the last 20 years. Keep in mind that the national debt doubled to $10 Trillion (From $5 Trillion) under Bush….this without an extremely dire economy. Is it deficit spending you truly abhor, or just the political party that will be doing this time?
(I’m amazed at how some consipiracy theorists still cling to the birth certificate issue)
Last question: Look yourself in the mirror, how many of you critics would take a different stance if a different man was in office. It seems like some would deride the $1000 propsed tax rebate of Obama, but embrace the rebates offered by Bush.
And while most would like to blame politicians or political parties, recall the Greenspan served as the Chairman fo the fed under Reagan, Bush (41), Clinton, and Bush (43)
44. Skip Knox | 01.08.09
People keep arguing about whether Bush caused the current problem or not. He’s only one player. We’re in this mess not so much because of government but because government stepped away from its historic duties and allowed corporations to run amok.
The real culprit here is corporate America. Let people spend their money as they please? Well, we invested our money only to find we were defrauded. Not by the government; by corporations. It’s corporations that have driven up health care. It’s corporations that failed to spend on infrastructure (their own or the nation’s) in favor of ever more glorious quarterly earnings and huge bonuses.
The reason why we have such a huge national debt isn’t because of the government. It isn’t even because of the Iraq war. It’s because of the stunning bailouts of corporations that should have been policed. They’re recidivist criminals, naughty children who much be watched. When watched, they can do much good. When unwatched … well, we’ve seen the result, and this isn’t the first time.
The madness and greed of the unholy rich needs to be bridled. We know this. We’ve learned this lesson before, going all the way back to the Progressives and Teddy Roosevelt.
Don’t blame Bush. Unless you want to blame him for being a fool and for believing all the deregulation propaganda foisted on him. He was only doing as he was told.
45. aconcernedconstituent | 01.08.09
Well put Tom Morrison. I think all Americans should take economics classes to truly understand what we are faced with. I admit that I need laymen’s terms and your comments helped me to begin my research - something all of us constituents need to do on a daily business and not just through reading media hype. Thanks to all for your comments and debate.
46. researching_constituent | 01.08.09
Tom,
Well put. I think all Americans should take economics classes to truly understand what we are faced with. I admit that I need laymen’s terms and your comments here helped me to begin my research - something all of us constituents need to do on a daily basis and not just through reading media hype.
47. researching_constituent | 01.08.09
Spars - Well put.
I think your comments coincide with a quote from Forbes and Readers Digest:
“For society as a whole, nothing comes as a ‘right’ to which we are ‘entitled’. Even bare subsistence has to be produced…. The only way anyone can have a right to something that has to be produced is to force someone else to produce it… The more things are provided as rights, the less the recipients have to work and the more the providers have to carry the load.” Thomas Sowell, quoted in Forbes and Reader’s Digest.
48. Terry | 01.08.09
We really need to get on about the business of becoming energy independent. This past year and the record gas prices played a huge part in our economic meltdown and seriously damaged our economy and society.We keep planning to spend BILLIONS on bailouts and stimulus plans.Bail us out of our dependence on foreign oil. Make electric plug in car technology more affordable. It cost the equivalent of 60 cents a gallon to drive an electric plug in car. The electric could be generated from wind or solar. If all gasoline cars, trucks, and SUV’s instead had plug-in electric drive trains, the amount of electricity needed to replace gasoline is about equal to the estimated wind energy potential of the state of North Dakota. Get with it! Utilize free sources such as wind and solar. Stop throwing away money on things that don’t work. Invest in America and it’s energy independence. Create cheap clean energy, create millions of badly needed green collar jobs. Put America back to work. It is a win-win situation. We have to become more proactive citizens, educate ourselves and demand our elected officials move this country forward into the era of energy independence. Jeff Wilson’s new book The Manhattan Project of 2009 Energy Independence NOW outlines a plan for America to wean itself off oil. We need a plan and we need it now! http://www.themanhattanprojectof2009.com
49. an aussie | 01.08.09
Being Australia, Canada or Europe is not that bad, really! These are all decent places with a good, strong central goverments that takes care of its nations, its health, education and financial systems (at this point much better than yours). You be sure to regulate the mess you have created for all of us, so it won’t come back ever again, instead of finger pointing. Your idea of self-regulating free market has had a stroke on the Wall Street recently, and your idea of globalized economy hangs on the sad fact whether or not China will starts cashing its humongous US$ treasury bond reserves. And you are still about red vs. blue?! So sad. And so American!
You all will have to change. Big time! You better let the chap you have elected do his job (and pray for him), … before Chinese lose the patience and bring the bonds to the bank!
50. another_researching_constituent | 01.08.09
“There is no such thing as government money - only taxpayer money.” William Weld, quoted in Readers Digest.
Source: http://www.federalbudget.com/
51. aconcernedconstituent | 01.08.09
an aussie - I am thankful that Obama is more than ‘the chap’. We picked him because we believe he is a ‘THINKER’ and will consider the free market in a global sense of the macro economy. The economy is something that all countries have a hand in - not just Wall Street and the old ‘free market’ as we knew it yesterday.
52. danden | 01.08.09
The man has not even been sworn in, but already, he is working harder than the current president has in eight years. We finally have a leader who can intelligently assess a situation and communicate a noble vision to the citizen of this country. Government holds the potential to bring us together for common cause. Corporations are motivated only by profit. Tax breaks alone will only increase their profit, not solve the world’s problems. We need to work together to realize our fullest potential.
54. Maralago | 01.08.09
Wow, the Republican messaging machine just won’t quit. I keep reading the same exact complaints - word for word - on just about every public forum. The biggest nag: Obama is inexperienced. Well exactly what was Dubya’s experience? Running his father’s state into the ground - except for the big business of executions he did nothing for Texas except destroy its environment. He has put us into untold debt by virtue of his illegal and ill-conceived war (he can only executive people successfully, not battles). If you don’t think spending a billion+ a month in Iraq is partly to blame for the US economy going down the sinkhole, I’ve got several bridges in California to sell you.
55. Emitr | 01.08.09
It’s not Bush or Obama per se. It’s the flawed monetary system, which requires debt as a source of never ending money creation. It’s unsustainable, but I don’t blame them for trying to save a ship that will, indeed, sink. But I do blame the system. There are alternatives, but the world economy is probably going to have to crash before there is political will enough to transition to a systainable system. I wish every human would watch Google Video’s “Money as Debt” video. It describes the current system, which cannot sustain itself because their aren’t enough resources in the universe for it, and it explores some possible alternatives. When our economy collapses sometime in the future, I hope there are enough people educated about our monetary system to be able to support a viable alternative. But this partisan president bashing does not contribute. Bailouts or not, the system will collapse eventually anyway.
56. ender | 01.08.09
Regardless of what happens in this situation, all of us, republican and democrat have to take some responsibility for the economic crisis. America’s worst moments and finist hours have never been the work of one man, but of the entire nation. America’s shinig moments are those that happen when we rise from the ashes of our mistakes, take responsibility for our own actions, and come out better for it. God Bless
57. T-Prop | 01.09.09
Oh my.
It appears we are in a deep stall, and if we don’t dump the nose we’re going to hit the ground.
58. P Alfonso | 01.09.09
The current path is taking us nowhere. It is a dead end.
We are bounded by debt and the only solution they can find is more debt. That is plain stupid.
Our nation is bankrupt. Stop beating around the bush and admit it. We need to default on our foreign debt. China is about ready to stop giving us credit and without it we will fall quickly in a very deep depression.
Shortages, famine, riots, death, civil disorder will all follow.
Our politicians are wimps and don’t have what takes to do what is best for our citizens.
We are in a no win situation and everyone is going to lose everything they have.
1) Government needs to default on all foreign debt.(They don’t, because they are protecting the wealthy who owns the world).
2) Don’t bailout anyone and let them file for bankruptcy and restructure.
3) Take over the banks and give the citizens universal debt forgiveness on all mortgages, car loans and credit cards. Remove all liens from their properties.
4) Issue new currency.
5) Re-privatize the banks and let them have a fresh start.
Once the debt is eliminated everyone will be debt free and have money to spend and get the economy in high gear once again. Our government will not have a debt to pass on to future generations.
Let’s regain our independence and don’t fall for the “New World Order” ****. Let’s go back to be the nation that we were.
Avoid the mistakes of the past.
Visit my website:
http://www.readwhatisee.com
Read some of my latest articles on the economy. Someone needs to come up with something that will work for good not just for now.
59. mike | 01.09.09
Bush (the pathetic one) got us all into this mess. Talk about someone who couldnt run his own home let alone the country. All republicans are pathetic
60. Pat M | 01.09.09
I agree with those who feel that a part of our current crisis is the lack of fiscal responsibility in all areas of our nation—big business, government, and everyday citizens alike. I am saddened by the lack of foresight and reflection in our leaders, but those who keep nagging and blaming those that they feel are responsible should instead focus smaller, on the decisions that they are making every day that shape our economy. We will need our soon to be Obama administration to help our heal our nation, and at the same time we need to think of our own solutions and the best course of action for ourselves, families, businesses, etc. I also heartily agree that if we are blaming others, we cannot place blame on just our president, but rather on the countless “higher-ups” that have let bad judgment spread like a sickness through so many important decisions. Lets be our own example of what we want to see in our nation.
61. drea | 01.18.09
The republicans are worried about giving Obama 800 billion dollars but when Bush wanted 700 billion, they were all for it. what the heck? They republicans are just selfish and angry because there is a new fresh face in office that will bring in reform/change. For all that cannot acccept that we need him, i’m sorry.
62. zxzxzx | 05.29.09
The republicans are worried about giving Obama 800 billion dollars but when Bush wanted 700 billion
63. John | 09.23.09
At this point forward, money is going to be worth less each day. If that is a steady decline then we can plan for it and make long term contracts that stick. But if the dollar collapses, then everyone is going to be sitting around without meaningful contracts until the value stabilizes. Why would you work if the money you are promised at the end of a job isn’t worth half as much as when you did the job. Might be healthy to be paid a days wages for a days work again. But if fewer people are willing to commit to long term contracts it will force a further contraction of the real economy, even if GDP goes up in dollar terms. I don’t see a good way out of this, a lot of paper wealth is going to be destroyed during the next few years.
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1. jvpski | 01.08.09
What a pathetic misinformed man. He is going to ruin the USA as we know it with his fiscal policies. I guess that is what happens when you elect a man with little experience let alone any business/executive experience. The media elites and others will run this guy and won’t report truthfully about his mess.
Remember when Bush started and there was a recession in the beginning of his first term? Everyone said don’t talk down the economy. Not a beep from the media on Obama’s constant negative talk trying to lower expectations for his admin.
What a messiah! More like a false prophet. Don’t blame me I did not vote for him.