As Americans come to grips with what is certain to be the worst economic period since the great depression, they will no doubt be looking to Obama to act quickly and decisively from the moment he assumes the powers of the Presidency. Reports say Congress is aiming to have a stimulus bill ready for his signature within a couple days of his inauguration, and that it will be on the order of $750 billion – $1 trillion. I’ll be the first to admit that before the crackhouse of cards built by the smartest guys on Wall Street imploded this fall, I would have been all the way against this kind of action. Well, facts on the ground change, and along with reading the opinions of experts, I’ve been privy to a non-trivial amount of anecdotal evidence that, were I a cartoon character, would have my hair looking like this:
It’s quite clear that El Presidente was actually correct when he said “If money isn’t loosened up, this sucker could go down.” Yeah, he actually said that and it pains me no end that he was on the right side while I was on the other. Darkness. So it’s obviously strange bedfellows (nullus, because I’ve determined that ‘bedfellows’ the gayest word in the English language) that I find myself agreeing with both Obama and Bush. Wow, it’s dark in here. Anyway, Obama’s infrastructure-targeting stimulus makes sense given the corroded state of our roads, bridges, schools, power grid, etc. And since these all require materials produced in this country and workers who live here, the odds are this is the smartest way to go.
That is, unless you sit down for a chat with someone like Senate Minority Leader Mitch McConnell who said:
… he wants to slow consideration of the economic stimulus package Democrats are drafting, warning that the measure sought by President-elect Barack Obama invites wasteful spending.
“A trillion-dollar spending bill would be the largest spending bill in the history of our country at a time when our national debt is already the largest in history,” McConnell, a Kentucky Republican, said in a statement. “As a result, it will require tough scrutiny and oversight. Taxpayers, already stretched to the limit, deserve nothing less.”
The nation’s debt has been the largest it’s ever been for quite some time now, and that’s mostly due to the Bush tax cuts and unlimited war spending, almost all of which came with Republicans controlling Congress and the White House. Bush’s tax cuts have a 10-year cost of $2 trillion, and the Iraq War tab will probably end up around $3 trillion. Much of this money has been simply flushed down the toilet, with no ongoing economic benefits. Spending on infrastructure as contained in Obama’s plan could generate as much as $1.50 in exchange for every dollar spent.
Of course McConnell wants to slow the spending and continue cutting taxes for the wealthy. That’s what Republicans always want to do. But the numbers are clear, and the need is pressing. It’s now Obama’s job to lead on this. I don’t think the American people need much of a push to realize that this spending is critical and that improperly targeted tax cuts are a large part of the current problem. What’s the catch? Compromise is in Obama’s DNA, and Congressional Democrats just like folding winning hands for the hell of it.
This will be the first real peek into what Obama will be like as President.