Obama can assure his future and get the country back on track at the same time by thinking green.President Elect Obama faces a daunting challenge in reviving our economy. The full measure of his success will be not the support he has up front but both the success and his support level as we emerge at the other end of the recession.
If we go on a national spending spree simply to stimulate short-term employment, the end result will be an American public with a fiscal hangover and a staggering debt, looking for someone to blame and likely to hold the Obama administration responsible for creation of debt built on spending instead of investment.
I am personally confident that the President-Elect understands this, but it is worth repeating over and over again lest the profligate spenders see this crisis as the opportunity to spend on projects with no long-term gain for the country.
Lets face it, getting a stimulus package passed will not be the hard part. Obama is likely to get a lot of latitude from the American people, as well as the Democrats and moderate Republicans in Congress. As difficult as this may be – it really is the easy part.
However, with some smart ideas and careful positioning Obama can dig deep into the more conservative factions of the Republican Congressional delegation as well. He can do this by focusing on investments that have long term implications and seed revolutionary change at the same time. He can do it by developing proposals that political self interest will compel even conservatives to support. By appealing to their patriotism; their market oriented and investment-minded inclinations; and, their electoral self interest, President Obama can turn the economy around, usher in a new green era based on renewable energy sources and inoculate himself against the charges of being a mindless spender in the process.
Over the next few weeks we will propose a number of ideas that can help make this happen.
Any discussion of a stimulus package to bring the nation out of this deep recession will have to take a myriad of factors (and actors) into account. Most important among them:
1. The Need for Speed:
In order for a stimulus to be effective if must proceed with “all due haste”. We can’t afford to waste a moment. History has shown us that Roosevelt’s caution in acting on the economic crisis that we now know as the great depression may have prolongued that recession by years. In fairness the presidential handover in that time was later in the year and thus nearly 3 more months of transition added to that delay, but historians and economists are generally agreed that this delay exacerbated the Depression’s depth and length. Obama has clearly demonstrated that he understands this and as much as he would deny it, Obama is acting as defacto President in may respects already, particularly when it comes to using the “Bully Pulpit” of the office to calm the nation and to focus our energy and understanding.
The need for speed will mean that general public works projects will need to focus on those that are “shovel ready”. In other words, those projects that have all the necessary environmental, legislative, federal and state approvals. In his remarks before the Governor’s recently, the President Elect showed that he understood this. More important, in later remarks he demonstrated that he would take a no-nonsense “use it or loose it” approach to assure that Governor’s looking to nab federal funds won’t overstate their readiness without consequence.
2. Investment Not Spending:
Both simple mindless spending and carefully crafted investments will generate jobs in the short run, but spending that does not have a long term benefit that qualifies it as investment in the future will run out of steam fairly quickly – perhaps before the nation emerges from the recession. The Bush approach of sending checks to taxpayer just won’t do the trick. Our nation’s resources need to be consolidated and invested.
3. Moving the Nation Toward Energy Independence
Given the very short attention span of politicians and the American people in general, historians will look back at the dramatic rise in the cost of energy in late 2007 and early 2008 as a Godsend that focused the nations attention on our greatest long term threat to peace, security and economic stability. Furthermore, recent declines in these costs have eased the pain as winter approaches another fortunately timed, but we must not allow ourselves to become complacent. Where ever possible the components of the stimulus must take into account the need to quickly move the nation toward energy independence.
Additionally, investment that focuses on creation of energy independence will bolster both small and large businesses that offer green technology and renewable energy options at a time when the lack of private investment threatens their short term viability.
4. Creating Synergies with other National Imperatives
Other national imperatives like improving the quality of education and providing healthcare to all Americans need not be cast aside in this process if we can create components of the stimulus that will create short term jobs and long term gains at the same time. Strategic investments in these areas can play an important role in addressing those issues and ending the recession as you will see from our first suggestion below.
5. Building Long Term Political Consensus:
The atmosphere of bitter partisanship that has driven the national dialog over the past decade or more must be replaced by a political realignment. To hope for a truly post partisan era is probably polyannish to the extreme but a new governing coalition where constructive engagement trumps partisanship in electoral politics might be possible. At the very least a government that governs from the “radical center” might be able to isolate the extremes on both the left and the right and truly bring about change.
