Turning Disaster Into Opportunity

Rare is the catastrophe that does not offer some promise. The key is having the genius to discover hope within the rubble.

An argument can be made that the current financial disaster offers a future president, Obama in this case, the chance to transform the U.S. economy. A weakened Wall Street and a chastened conservative community are not now in a position to resist thoughtful and sober re-regulation of markets. The Reagan era (actually Nixon-Reagan-Bush) is over and with it the arrogance that laissez faire always presumes.

But recreation of another Rooseveltian period of 1932 to 1940, with a new set of rules for intricate financial institutions, is not enough. We must transform our economy from one of consumption to one of production, invest much more heavily in new technologies, research, and invention, and start the process of creating a post-carbon economy. The current wreckage must not simply be put back together to recreate the old economy. It must be pushed out of the way to make space for a new, 21st century economy.

The same may be said for foreign policy. Merely returning to the pre-Bush status quo will not work because the new century features a host of new realities: proliferation of weapons of mass destruction; the rise of stateless nations; the threat of pandemics; failed and failing states; mass south-north migrations; climate change; globalized economics; and the list continues. An Obama administration will have responsibility for repairing damaged traditional relations. But it will also have the opportunity to create a new round of international institution-building that includes international financial regulation and cooperation, international administration of a post-Kyoto treaty, reduction in nuclear weapons, integration of public health services, and so on. Our new foreign policy should be patterned on the immensely creative 1945 to 1948 Truman era.

And when troops and equipment are returned from Iraq and Afghanistan, our military should not merely be "re-set", the Washington code word for rebuilding the Cold War military. Our defenses in the new century must acknowledge the transformation of war and the changing nature of conflict which will require new military structures, command and control systems, and even weapons themselves.

The Wall Street disaster is a metaphor for excess and greed, but also for a time gone by. The world of the new century requires not just a new Democratic administration, but one that is prepared to transform our nation and help transform the world.

Comments

[redpepper]

McCain is the man who can get our economy back on track the right way. Obama wants the normal TAX and SPEND programs and will drive the economy in to the ground. You can't grow green if you are in dirt all the time.

[sparafucilli]

A case should be made for establishing something other than profit, GDP and other "accounting measurements" as the sole basis for judging the success and growth in our economy. Until that is done we will not see any real planetary improvements. So what if profits increase and GDP skyrockets but the human pain and suffering index moves up in tandem or the biosphere index correlates negatively.

[research]

google

alternative GDP

[ArchAngel]

I completely agree!

It's great that all of these bad things have happened after 8 years of Republican rule. Everything the Republicans have said and promised have been nothing but ash filled lies. And the results speak for themselves.

It's easy to look around the world and see what works and what does not work.

Who has successful low cost health care?

Who has successful low infant mortality?

Who has successful completely paid eduction through the highest levels?

Who has successful humane stable long term work conditions?

Who has successful secure retirement?

Who has successful stable families?

These are the most important measures by which a nation is judged and America fails all of these.

(Let's hope we have another great snow year in Colorado...)

[research]

Sweden

[manative]

I agree that lobbyists and the corporate financial influence they usually wield are the biggest problem in DC today. A rational step in the right direction that would probably never be considered is expanding congress by a factor of 5-10 to dilute the power of individual congressman and lobbies. The people would have a much better chance at real representation and the lobbyists would have too many moving targets to hit and perhaps too little money to do it as effectively as they can now.

[ObjectiveRealist]

"A rational step in the right direction that would probably never be considered is expanding congress by a factor of 5-10 to dilute the power of individual congressman and lobbies."

That is not a bad idea, but a simpler remedy is a statute clarifying the First Amendment Right to Free Speech, such that it applies *only* to individuals, and *only* when we act as such. In other words, corporations and even non-profit groups do not have the right to (political) speech. When only individual citizens may contribute to political parties and campaigns, "campaign finance reform" will be obsolete. Until then, "campaign finance reform" will be irrelevant.

[twgbonehead]

I couldn't agree more. Our "Great economy" has been resting on its laurels for far too long.

We have been fed the bs of the "service economy" (where we all make a living by selling stuff to each other, none of which we make) and the "investor economy" (the US is "too big to fail", so we won't).

What's been totally missing is the "production economy". Our biggest exports are now Hollywood Films and Weapons. (Oh, and "shipping" - where we send oil tankers over to the Middle East, and bring them back full of oil. The shipping is an export?) We're only a net exporter of food because (in order to avert a catastrophe) "Resinoids" are now considered food products. Have you had your resinoids today? (Stoners, you can put your hands down, we know...)

Are our children going to be able to put food on their families?

[LisaLisa1234]

Do you want our children to put food on their families? ;)

Sorry, that last line made me chuckle. I needed a good chuckle today.

You wrote a great post!

[JohnnyBoyyy]

Good ideas, Mr. Hart. And YES we all know the many changes we need will test our new President and his cabinet, as well as all elected officials throughout the nation. The stakes have never been higher. It will mean the fall of the American Empire OR the Rebirth of America.

In the new Obama Presidency, we will need to harness 21st century technology like he is doing with the BarackObama website. This website not only explains the Obama Plan for Change, but allows everyone to communicate with his campaign staff and to join in his election efforts.

This new "ChangeAmerica.gov" website will be where President Obama and/or Vice President Biden would report weekly to update Americans on how their many plans are going. Also, ALL Americans can offer their blogs and comments like we do here in the HuffPost. This will put All elected officials on notice that we are mad as hell and aren't gonna take it any more. The site will also alert the MSM that they must return to their intended purpose of REPORTING THE NEWS to maintain our viewership.

We don't have time for BS. Together, we must all take a part in changing America and changing the world's perception of America.

This is OUR Time - This is OUR Moment.

Obama/Biden '08/12!!!

[research]

The Conservative religion of deregulation caused the economic crash.

Just like the depression.

[Militant_Leftist]

Good point and I would argue that Christianity isn't the religion of conservatism, but in fact it's this brand of capitalism (deregulated, laissez-faire, trickle down - "I've got mine and to hell with the rest of you"). It is the antithesis to the message of the New Testament Christ.

[TheNoBullExpress]

The greed on Main Street was the fuel for Wall Street:
Are Americans fully aware that thousands upon thousand of local mortgage brokers and loan officers from companies such as Countrywide and Ameriquest are as much to blame as Wall Street?

These people were often making $200,000 a year; many upper level managers making a $1,000,000 per year while being the original cluprit in the mortage domino game. Soon, America will learn to what extent, these local salespeople lied for a living while originating these 'bad' loans. The greed was rampant as the easy money flowed from homeowner to their bank accounts. Thousands of salepeople with no more than a high school diploma, were given the title of 'loan officers' worked the phones with 150 telemarketing calls every day. They raped and pillaged the equity people had in their homes, charging huge fees for originating or selling these loans.

These were your friendly, local 'SubPrime' lenders. They were barracudas for risky loans paying them outrageous commissions. Countrywide and Ameriquest were the big names; there were 100 more just like them. The smaller the firms, the less internal regulation on dishonest sales practices.

No doubt, a high percentage of these people made big money due to the no regulation environment of Bush, Inc.

[AllSeeingEyeball]

I want to share this. During the one of the Republican Primary debates Ron Paul kept dismissing the question asked and kept saying the real problem was the Federal Reserve, and monetary policy. The camera showed Romney and McCain smiling at one another off to the side. I got the impression that Romney was saying to McCain with his eyes and body language, "he [Paul] is wasting his time on this, hardee har har." No one ever challenged Paul on anything he said as untrue, inaccurate, or misleading. On would think that Ron Paul would be at least mentioned in the Media Coverage, but nothing? Remember the crisis is South America when the IMF forgave all that third world debt. I think Clinton was still in office. Remember the monetary crisis in China? Well all those problems are still there. Those shoes are going to drop again, and soon. I agree with Ben Stein. Appoint a Special Prosecutor. Lets start in the Manhattan Federal District Court. A target of 5000 prosecutions. I am more then willing as a taxpayer to underwrite this effort.

[KevinMast]

Great article. You are right. With all this manure, there has to be a pony around somewhere.

[olephart]

"invest much more heavily in new technologies"

We"re broke! The REAL 2008 deficit was $962 billion and 2009 has started off at an estimated $1.8 trillion in red ink without doing anything further!

[ProudAmerican23]

"invest much more heavily in new technologies" That line really cracks me up, we live in a country which invents based on vision of what we can market and sell. It is the very existence of enterprise and market strategy (google search "Blue Ocean Markets") Lots of businesses have tried to find that nitch to replace current fuel with new stuff... so if anyone couldve invented a great new source of power or technology they would have by now! No gov kick start needed! I believe that lots of companys with very smart researchers have tried already and very little has come of it because its not a good investment financially, or it just doesnt work that well. So now our wonderful super efficient US Gov is going to spend billions (which we dont have) and make it happen! Yea that will work about as efficiently as Social security, welfare and the IRS.

[Jellinek]

Obviously, reasearch and development is a stupid idea. What were . . . we thinking?

[olephart]

"our economy from one of consumption to one of production"

Getting our jobs back will be difficult. The owners of those jobs are our bankers. Bush has put our economic eggs in their hands. We cannot borrow from them and blow them off at the same time.

[olephart]

"the chance to transform the U.S. economy." "a chastened conservative community"

Much of today"s economic rubble was caused by Centrist Democrats (Clinton et. al.) siding with Republicans on trade and deregulation. In order to go forward, the Democratic Party must purge this Albatross from "round its neck.

[kotexbarbie]

Absolutely! Unfortunately, the Democratic Party has just put two centrists on the ticket... oops.

[rhettab]

What most of you don't seem to realize is that Gary Hart had a vision for our country that was extremely forward thinking - much more so than Bill Clinton. Senator Hart has a sharp intellect that was evident when he co-chaired the panel that predicted 9/11 and no one paid any attention to them. They laid the entire thing out and both Clinton and Bush ignored the warning. He is an astute authority on foreign policy and security. This is a thinker that we could use in the Obama admistration

I am amazed that he was John McCain's best man but Gary also wrote a book with William Cohen - another McCain fan. Could that be the "old" McCain?

[Dalicious]

That was a quarter century ago - and even then, he was hard put to answer the question, "where's the beef?" His a great example of liberal Democratic thinking with no basis in reality. Face it, if he lived in the real world, the Monkey Business photo would never have happened.

[olephart]

"the current financial disaster offers a future president, Obama in this case"

I see eggs not chickens.

[Erdgeist]

I agree. An economy based on production--not financial bubble making, is strongly called for in the wake of this crisis. We have to get back, in other words, to making widgets and growing green things we can eat! This, of course, means putting globalization into the dust bin of history. If a nation can provide its own goods and services--what the devil is the point of globalization unless, of course, it is really intended to serve the bottom line of corporations by outsourcing.