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LaHood Hits Back Hard Against Charges Of "Socialism," "Obama Recession"

First Posted: 04/10/09 06:12 AM ET Updated: 05/25/11 02:05 PM ET

Lahood

Secretary of Transportation Ray Lahood hit back hard on Monday to charges from White House critics that President Barack Obama's economic policies -- focused on leveraging government spending to stimulate demand -- had exacerbated the recession and constituted a form of socialism.

In an interview with the Huffington Post, LaHood, one of the few Republican members of the Obama administration, scoffed at the recent talking points emanating from the congressional leaders of his own party. His voice rising at times with emotion, the transportation czar tackled first the notion that the president was a socialist in disguise.

"I don't agree with it," LaHood said. "If you go out and interview these people working on this road in Maryland... these people are thrilled. They are thrilled that they are working in March on a good paying job building roads, which is what they were trained to do. That's going to be happening all over America. So the idea that this is socialism -- it is not socialism, it is economic development. It is going to provide an economic engine around communities all over American for jobs; good paying jobs; and help people pay their bills. I don't call that socialism.... We are the model for the world when it comes to infrastructure. We are the model for the interstate system. I don't call that socialism. Our $40 billion [for the Department of Transportation]: not socialism. It is good paying jobs that is going to drive the economies in a lot of states and a lot of communities."

LaHood's comments come amidst a growing chorus of GOP critics claiming that Obama is engineering a government takeover of the nation's main economic organs. The theme has found its way into mainstream political dialogue as well. In an interview last week with the New York Times, Obama was asked bluntly whether he is a socialist. The president initially brushed the question off, then called the reporters back after the interview ended to supplement his response. "It was hard for me to believe that you were entirely serious about that socialist question," Obama told the Times' scribes. "I did think it might be useful to point out that it wasn't under me that we started buying a bunch of shares of banks."

Perhaps more importantly, public opinion polls suggest that a large proportion of Americans are open both to additional stimulus spending as well as government intervention to revamp insolvent banks. Faced with these numbers, Republican strategists have deployed a separate strategy: portraying the president, with each passing day, as more and more responsible for the current crisis.

Asked about this line of attack, replete with phrases like the "Obama recession," Secretary LaHood offered a similarly ardent rebuke. If blame is to be cast, he declared, it can only, at this point, lie with the previous White House.

"This is not an Obama recession," he said. "He inherited all of this. He inherited a $1 trillion dollar debt. He inherited the recession. He inherited the lousy stock market. All of this was inherited. The guy has been in office a little over a month and what he has tried to do is listen to every economist he could listen to. And he put in place some opportunities to get people to work quickly through the transportation bill portion of it, to help the banks, and to help the real estate industry. And it is going to take time."

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Secretary of Transportation Ray Lahood hit back hard on Monday to charges from White House critics that President Barack Obama's economic policies -- focused on leveraging government spending to stimu...
Secretary of Transportation Ray Lahood hit back hard on Monday to charges from White House critics that President Barack Obama's economic policies -- focused on leveraging government spending to stimu...
 
 
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10:04 PM on 03/16/2009
True , Obama found already a debt of a trillion created in the support of 2 war fronts and during 8 years. Obama has spent the same amount in less than 1 1/2 months. It's too early to say wether will work or not.
It's going to take 2 years or so to start showing if the spending will work, and a dacade to answer that question with certainty.
One thing we have to be watchfull is about the leaning to the left of the administration. For example working Americans will have their employers' health insurance taxed to subsidize those who are not working. Those in wellfare had their checks extended for another 2 years etc.
Those handouts create only people dependent on the government, there is not incentives to get out of welfare.
Yes I know how it is , I was unemployed for 2 years and held my family afloat the old fashion way, with 2 part time jobs till I found a full time one. Never touched welfare.
When the stimulus money is gone and spent, where are we going to get more?
07:52 PM on 03/15/2009
Why does Obama not get it?

Leveraged unregulated Investment Insurance (swaps) and Shorting caused 90% of the this crash.

90% is the amount of the Stock market that is now Shorting and Insurance Swaps.

http://www.huffingtonpost.com/users/profile/research?action=profile
02:22 PM on 03/12/2009
La Hood is correct ; Why do all our (smart ? ) leaders want to give our tax dollars to the banks ? Give it to the working people give it to persons that will spend it and start the economy going again . They just can't let go of the trickle down theory can they ? And that is not socialism , it is common sense .
03:38 PM on 03/11/2009
Why is the Huff. Post not reporting on Warren Buffett and Jack Welch coming out and publicly SLAMMING Obama and Gethners economic plans??? Doesn't tow the liberal line of wealth destruction or trickle up poverty? Welch and Buffett probably know a little bit more than Barry and Tim do about what is good for our economy. And now this clown is talking about a Global Stimulus? Hahahahaha OH MY GOD. Thank God this guy is only going to be here for one term, although the damage may be done by then.
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HUFFPOST SUPER USER
prestonmacdougall
the Chemical Eye Guy
11:41 AM on 03/11/2009
"The guy has been in office a little over a month and what he has tried to do is listen to every economist he could listen to."

Advice: Stop listening to economists. They represent "the dismal science". Just use common sense, and the uncommon intelligence that this administration clearly has.
03:39 PM on 03/11/2009
Jack Welch and Warren Buffett are basically saying that Obama and Geithner are morons.
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Eris23Skidoo
Dischordian Keynesian
07:09 PM on 03/11/2009
Ahem. The reason economics is known as 'the dismal science' is because some preacher who dared call himself an economist once predicted that if economic distribution is such that the poorer classes gain income they will spend all of their free time eating and procreating. He was arguing that ending the aristocracy would result in massive increases in population and a resulting decline in civilization. He was arguing against reform of the corn laws of Britain which at that time held that only landed gentry could sell crops (preserving a kind of monopoly).

First of all, that preacher was arguing from the standpoint of christianity, which is that human beings are to blame for all misery on this earth; and particularly that the poorest of us are the least worthy. He was arguing for the status quo. Fortunately, in France & Germany they got rid of their versions of the corn laws BECAUSE THEY HAD THEIR OWN ECONOMISTS TO LISTEN TO and that preacher was proven wrong.

I'm studying economics and I do resent disparagement of my chosen profession. Economics IS based on common sense, but it also requires some calculus and other academics.
09:43 AM on 03/11/2009
US is the model for infrastructure? I am American, but live in Germany, and the Germans are way ahead of the US in power grid, rail transport, autobahns, bridges(never heard of one collapsing, but believe me, every summer there is a work site on key bridges of the autobahn, as an example), airports, atomic power, etc. As transport chief in the US, recommend a junket here will be most instructive.
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Horus45
Liberal Activist, anti-Fascist
01:15 PM on 03/11/2009
But the US was used as a model for the Germans.
They sent people here in the 1930's to learn how to create a highway system like the US got from the FDR administration.
02:26 PM on 03/11/2009
US began building a national highway system in the mid-1920's, notably the Lincoln Highway (US 30), and this continued into the early 1940's, but these were not limited-access divided freeways http://en.wikipedia.org/wiki/US_highways. The first German autobahn was from Cologne to Bonn, opened in 1932 http://en.wikipedia.org/wiki/Autobahn.
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Eris23Skidoo
Dischordian Keynesian
07:10 PM on 03/11/2009
The Marshall Plan rebuilt Germany using principles designed by Keynes to fix an economy; primarily infrastructure. The US was the first experiment, but Keynes himself was British.
Biloxiblues
Seriously?
08:38 AM on 03/11/2009
How about "The Obama Inheritance" or "The Bush Debt Dump" ?
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HUFFPOST SUPER USER
ChristianEcon.com
"The Lord abhors dishonest scales."--Proverbs 11.1
06:28 AM on 03/11/2009
"The Obama Recession"? Is that the most desperate spin in the history of politics or what. Bye bye, rightwing ideology--thanks for nearly destroying the American economy.
09:26 AM on 03/11/2009
Yep, it looks like that's the best they can come up with. All they can do now is pin everything on Obama. And yet they're the first ones to say "hey let's not look at the past". Why do they say that? Because they know that if we investigated the Bush administration, we'd find every corner full of crap that turned this economy into useless jelly.
06:07 AM on 03/11/2009
Our prior president was leaving things up to God and Dick Cheney. The current president has faced our social and economic crisis head on. While one may not agree with some of his appointments, this does not obviate the fact that he has the courage to deal with the crisis openly and deliberately. Most of his critics are people who either do not understand what is going on and naturally feel overwhelmed and/or who are also possibly a victim of these harsh economic times. It is a darn shame that we have to pin labels and generalize while Rome is burning. The Republican party is no longer the party of Lincoln. It has become a refuge for people who are naysayers and who do not wish to be in touch with reality. Lets try whatever works. Lets get rid of the ways that have not worked in the past.
10:30 AM on 03/11/2009
The Republican party was never the party of Lincoln. At it's start, it was more akin to today's Democratic Party than to the Republican Party of the 20th century and today. We would never have had an Emancipation Proclammation under modern day Republicans. NEVER.
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Eris23Skidoo
Dischordian Keynesian
07:13 PM on 03/11/2009
Very true. If the republicans had the kind of power that Obama now wields, we would be looking at reinstituting slavery. After all, being told by big daddy government that you don't have the right to own another human being is a violation of libertarian sensibilities.
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HUFFPOST SUPER USER
QuietTom
03:51 AM on 03/11/2009
I have a question that I haven't heard asked yet. We have all these words of doom about Obama and his team turning the country to Socialism. Yet, can anyone explain why Capitalism (and its byproduct of unfettered greed) is held in such high esteem when it seems to have failed so miserably and left us in this current mess? What am I missing?
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Eris23Skidoo
Dischordian Keynesian
07:14 PM on 03/11/2009
The invisible hand is a pick-pocket!
03:39 AM on 03/11/2009
Blaming Obama is the latest strategy of the Republicans, who hope that if they say it loud and often, the public will believe it. Of course, we won't. Americans are no longer asleep. I can't wait for the next election for the house and senate. It should be fun.
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Eris23Skidoo
Dischordian Keynesian
07:15 PM on 03/11/2009
They think this will work because they temporarily got the nation confused between Osama bin Laden and Saddam Hussein. They think their echo chamber is limitless. But what happens to the echo chamber when we let in a little sunshine?
12:55 AM on 03/11/2009
Many Republicans are now eager to simply pin the blame on Obama as if it will magically purge them of all responsibility for what they've wrought. They have absolutely nothing constructive to contribute. No solutions. They are morally and intellectually bankrupt. Their sole aim and unifying purpose is to attack Obama and those working to solve these massive problems, in order to paint themselves the lesser of evils. The verdict on this nonsense was rendered in November and they still don't get it.

I've seen them make statements to the effect that Obama may not have caused the problem, but since he is trying to to fix it, he bears all responsibility for whatever happens next. Nevermind how we got here and what he inherited. These people have actually convinced themselves that Obama should have, in 45 days, reversed these multi-trillion dollar problems that were years in the making This is the utter paucity of reason here with which we're dealing.
01:29 AM on 03/11/2009
It's a despicable, self-serving strategy that shows them for the selfish partisans they are. I hope rhey bury themselves and their party. They deserve to go under.
02:19 AM on 03/11/2009
How come G.W. Bush gets "credited" with "keeping us safe" for every day he was in office except for that one day, September 11th, even though there were lots of dire warnings and an intercepted message that didn't get translated because it wasn't translated until after we were attacked?

Whereas, our new president gets blamed for this catastrophic mess that also happened on Bush's watch?

Is this what is called "magical thinking?"
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Eris23Skidoo
Dischordian Keynesian
07:16 PM on 03/11/2009
It's not magical thinking, it's pure spin.
12:37 AM on 03/11/2009
The Republicans are so envious of Obamas success that they are trying to find a way of gaining a voice
in his winning game. But Obama sees the duplicity in their approaches and McCain for what he is. A shill
for the top 2 %. The tax benefits for the top money makers should be brought back to pre Bush years.He will move the Democrats in the progressive direction he has planned but he also must consider other avenues . Increase the loss claims of investors from $ 3,000. to $ 5,000, and remove the income tax for the unemployed drawing compensation. It is tough enough for them to get by on reduced income. The jobs will come but they need all the help they can get until then. If it takes backbone to overcome Republican political game playing it is time to get it on. Let the voters see who wants positive programs and not negative attitudes with no solutions.
12:24 AM on 03/11/2009
The GOPers are good at a whisper campaign. Remember McCain's illegitimate black child? Somehow, some way, the idiot press managed to amplify their rumor, consistently. Idiots!
01:19 AM on 03/11/2009
Whisper campaign? Is it a rumor that we are now racking up more debt than in all of US history combined? Envious of success that amounts to a stock market collapse and the greatest fear since the great depression. Trust me, No one is jealous of Obama! Everyone is concerned that the man they trusted is taking their money and giving it to the government. He approves billions in earmarks, put lobbyists in his cabinent and keeps the military complex rolling along indefineately.
The worst he's done is destroy our hope that we will prosper as long as he's in charge. It appears that isn't what he wants.
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sepiasiren
writer animator lover
01:31 AM on 03/11/2009
News flash--the stock market was collapsing years before Obama and the recession was already occurring--the man is trying to fin d solutions--if you have any I'd love to hear them...

he can't undo in 45 days what it took eight years to destroy...
HUFFPOST COMMUNITY MODERATOR
propitiousmoment
the journey is the destination....
02:18 AM on 03/11/2009
Compare the number of lobbiests in Obama's administration to the number of lobbiests and outright political appointments qualified on their ideology rather than their abilities, in the Bush admin. Guess what, not even close. Obama made a couple of exemptions but overall his administration is pristine so far compared with his immediate predecessor. He's even appointed people from the other party for god's sake. His spending is the kind of spending that got us out of the great depression, not the off-budget borrowed billions for a war we didn't need, couldn't justify, and couldn't afford. Bush's spending got us into this mess, Obama's will get us out. And he's not playing hide-the-dollars in the budgetary process, or using gimmicks to make himself look good. And his budgets will reduce the deficit again in four years. The only hopes he's destroyed are the hopes that he will fail.
12:11 AM on 03/11/2009
Excellent rebuttal!

President Obama needs more foreceful people like LaHood out in the public airwaves getting the facts out there, and more knowledgeable surrogates armed with facts and talking points to respond to the corporate and partisan critics.