February 26, 2009

The Opposition’s Tug of Rhetoric


Yesterday’s speech by President Obama, addressed to a joint session of Congress and clearly directed at the American people, was a sour reminder of the uphill battle our nation faces toward recovery and reform. Guilty of caution to an extreme, the President managed to sound hopeful to an increasingly politically incredulous crowd. But this is insular Washington, so in my book, he gets points just by standing up there and making his case for a better future.

However clear and optimistic Obama’s message might be, there is plenty of crumbling speed ahead of us. The economy is a disaster. Unemployment will keep rising to unprecedented levels as long as credit remains frozen in the rusty pipes of the financial sector. As much as half of this downward spiral is based on fear, and as long as the American people keep stumbling upon the opposition’s misplaced criticism of the Administration’s economic reforms, the long road to recovery will seem insurmountable.

The latent defeatism of the GOP has plunged to a new low and Governor Jindal (R-LA) has emerged as their spokesperson. It is without much contemplation that the members of his party are rallying against the recovery bill’s chance to jumpstart the economy. Their fodder? That government has no place in nation-building and recovery. Of course, there is substantial evidence against this rhetoric, but in the face of political annihilation much of this verbosity has translated into little persuasiveness precisely because the GOP, the party of fiscal responsibility, has contributed to the rampant deficit and the economic tsunami we have inherited.

What should be obvious in their impertinent argument is that when government is faced with a crisis such as this one, not doing enough can be costly. We see the consequences around the world. Economic crises can weaken the middle class, obstruct development and bring chaos. The world’s biggest middle class is now in trouble and much is at stake if government does not step in. This of course, is what Jindal’s party fundamentally opposes, and their solution is more of the same: taxcuts and a hands-off approach to basic universal problems like healthcare, energy independence and education reform. Fortunately, this crisis presents an opportunity for Obama’s government to try to fix some of the fundamental problems that got us here in the first place.

When 9/11 happened and Pres. Bush rallied us against his cause for war, much of the nation gave him the benefit of the doubt. It was not until six months later that we, the American public, realized we had evidently lost control and had stepped into the biggest foreign policy fiasco this nation has ever been confronted with still no end in sight. The least this Administration deserves is a fair attempt at improving the economy with a full front-attack. And let it be clear to Jindal and his party that after two wars, Katrina, the biggest deficit in US history and six straight unbalanced budgets, they have no moral grounds to lecture the Administration on how to go about fixing the problem.

February 09, 2009

Recovery Should Be Obama’s Bait


No doubt President Obama’s first days in office have been stressful. From faulty nominations to uncooperative deals, some say it's politics as usual. The media is busy dissecting all of this, highlighting, with some merit, his inexperience in back-channel negotiation tactics. But the truth is more profound. The economy and our livelihoods are in crisis and I think it’s time for Obama to put aside his gaily efforts to be bipartisan and focus on selling his recovery bill to the American people, which finally he will do this week, with or without the Republicans on board. Ultimately we, the taxpayers, will decide in favor of it.

Republicans have been doing a great job of making this American Recovery and Reinvestment Act (stimulus bill) sound like a wasteful spending spree. For Republicans, tax cuts should be the number one ingredient in the pot. Really? And what would John Doe do with a $1,200 tax cut? Go to Disneyland? Buy a flat screen TV set? If the average John Doe is like most of us, scared and reticent, he will cautiously put that money away or use it to pay up debt. This reasoning is what Republicans don’t understand. They want to jolt the economy back to life, to the unprecedented levels of profits and growth of the past 25 years so that corporate America can go back to their old ways of doing business.

Fortunately, Obama and his team can see through the smokescreen even if some of the details don’t yet add up. He has been saying it during the campaign. America needs to fundamentally change gears when it comes to spending, profiteering, and saving if we are to learn from the deepening mess we find ourselves in. He understands exactly how we got here: on credit and by lascivious risk-taking. Wall Street got greedier and rejected conservative and sound investment policies. Their complex schemes got the better of them and they developed glaucoma in their investment decisions. When the pressure set in and the losses started to compound, whose door did they knock on? You know the answer.

I understand the argument of some, that if we grow the size of government, things will get out of hand. It is true, overseeing the debt and spending of government takes a lot of work. It requires agencies working together in efficient, transparent and harmonious ways. However, if we are to avoid the past failed attempts at recession rescue plans, like Japan’s, we need a more comprehensive approach to spending. And this bill is offering exactly that. There is plenty of smart spending, which builds upon the realization that job recreation and long-term growth can come from government taking the initiative. How? By spending on infrastructure, education, research, science and technology, energy production, reforming our tax code, our trade agreements, specially investment regulations so that corporate and government financial transactions appear, at least, transparent.

If we fail to act now in defense of our expensive healthcare system, our crippled infrastructure, our burdened education system, our costly energy system and our unregulated financial system, it will be too late and expensive in the future, and we will have no incentives. For example, our green revolution is waiting to take off, if government is willing to be the co-pilot. This recession will be not be a short one, its lingering effects will continue to sip in even as recovery efforts make their presence in urban, rural, and suburban areas across America. There is no doubt in my mind that this is the greatest human challenge Americans face, one which will claim more victims than 9/11, the Iraq and Afghanistan wars, and Hurricane Katrina combined.
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