Quote Of The Day
By Justin Gardner | Related entries in 2008 Election, Barack, Economy, Quotes
“I’ve been very impressed with the caliber of people around Obama. There’s great hope they won’t fall down a partisan path.”
- Kevin Hassett, John McCain’s top economic advisor in a Fortune article
Still, Obama’s plan will be a government driven economic model in the short term, so we’re not going to see the deficit go down any time soon…
“Government is the most reliable source of short-term growth, the only part of GDP pulling out its wallet these days,” says Obama economic advisor Jared Bernstein. “There is a time for budget austerity - this ain’t it.”In the coming weeks and months those purse strings will be loosened, first for another major stimulus package that includes ready-to-launch infrastructure construction projects - and then for producers of clean energy like hybrid-auto technology and low-emission coal.
His advisors say he’s determined to pursue his $150 billion, ten-year energy plan despite the unexpected federal outlays caused by the recession and near collapse of the financial markets. The purse will open again in the form of tax breaks for small businesses and for big companies that create new jobs - but not for firms building operations overseas and not for oil companies, which face the prospect of a windfall-profits tax.
Consider it a more market-driven New Deal that not only tackles unemployment problems, but also touches on the ideas of energy independence and, by default, national security.
I know this will make budget hawks nervous, but what’s the other option? Leave America’s future in the hands of a completely chaotic market? I just don’t see that as a feasible option. You have to spend money to make money and budget cuts and inaction at this point won’t make us more competitive on the world stage or help solve any of these big problems.
But hey, if you have a better idea I’m all ears. Obama ever more so. ;-)
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November 7th, 2008 at 3:19 pm
Look at the remarkable difference in body language between Emanuel and the rest of the gang. He looks like he’s about to lurch our of his suit. Damn, watch out for this guy…
November 7th, 2008 at 3:23 pm
I think the greatest hope we have to get our economy back on its feet is to invest in energy independence, particularly “green” energy like wind/solar.
November 7th, 2008 at 3:33 pm
Deficit spending is fine, in a recession or in good times. Bush got railed for it in the media and on this website, even during times when the deficit was shrinking, and we had record economic growth.
I suppose its OK now that a democrat is doing it.
November 7th, 2008 at 5:38 pm
Agreed about that line-up behind him. A very impressive and confidence inspiring team. As far as the press conference itself, there would have been no difference in content if he simply walked out with this line-up, smiled and walked back off the stage. Although, truth be told, I was relieved to learn that Obama has not been communicating with dead presidents as part of his preparation for taking office.
On your observation…
That is nice, but don’t you think we would be better off with a government-controlled laissez-faire economy that not only tackles growth issues, but also touches on the ideas of voluntary service and, by default, puts a chicken in every pot?
November 7th, 2008 at 7:46 pm
From Obama’s campaign website:
It’s good to see we’ve moved beyond to campaign already. Obama has always been a forward-thinker, not weighed down by the ideas of the past, even if the past was one week ago and they were his ideas. (Sorry for the blatant sarcasm).
I sincerely hope that this story is not an accurate reflection of Obama’s intent. I want to give him the benefit of the doubt. I think you can argue that we need to spend even if we don’t have the money, in order to get us out of the recession. However, if you’re going to make promises that you have no intent on keeping, then you are not really any different than any other politician.
November 7th, 2008 at 8:24 pm
First off deficit spending is needed in a recession, we can’t get out of this without doing so, its the Keynesian way FTW.
Secoondly we need to do like FDR did in 1934 and raise taxes on the rich, thanks to his intelligent action the GDP grew almost 8% in 1934 and 35 and by 1936 was around 14% growth
November 7th, 2008 at 11:32 pm
[...] H/T to Donklephant. [...]
November 7th, 2008 at 11:35 pm
@Mike
I don’t believe for a second that they can restore PAYGO with this Congress, but if they do stand by this, it is the most hopeful thing I’ve heard yet.
Keynes was discredited decades ago. Deficit spending fixes exactly nothing. It never has and it never will. It can push a recession over the horizon, but it is like a drug, and you need more and more to keep the problem over the horizon. Eventually the piper is paid. Probably by you, but maybe you can foist it on your kids.
This is what the various bailouts and stimulus packages are costing us so far this year - from reason:
That is before the next stimulus, the next bailout for the auto industry, and whoever is cued up with their hands out behind that. On top of the usual deficit spending. On top of the existing record debt. On top of the unfunded Social Security mandate. And before 1 Trillion dollars of new spending promised by Obama.
I don’t know what you guys are all thinking. This is not pretend money. This is not “government” money. This is real money. Your money. Our money. Money
the governmentwe don’t have. Money that we will be borrowing from the Chinese and others to pay back with interest. Money that will ultimately have to be raised from taxes, or the most insidious tax of all - runaway inflation.But let’s just keep pushing that problem over the horizon where we won’t have to look at it. That way we can all pretend it’s not there. Leave it for our kids and grandkids to solve. But when the piper ultimately does get paid on this one, it’ll make today’s financial crisis look like good times.
Have a nice weekend everybody.