Crank High Voltage: Obama's Economic Speech

President Obama's audacious economic address at Georgetown University today provided the last swing of the wrecking ball for the shattered remnants of free market fundamentalism. Even as dazed and disoriented members of the GOP stumble around the ruins in a state of cataleptic shock, mumbling over and over to themselves the consolatory phrase that Obama is a socialist, the president doesn't simply want to tinker with the economy; he's aiming to lay an entire new foundation over the shards of the failed one. His talk laid out a comprehensive program for what might be called the four R's: reform, regulation, restructuring, and revival.

Obama quite rightly spread the blame for the crisis evenly: "This recession was not caused by a normal downturn in the business cycle. It was caused by a perfect storm of irresponsibility and poor decision-making that stretched from Wall Street to Washington to Main Street." Resorting to his favorite "some" gambit, he sought to debunk the naysayers who argue that his deficit spending will trigger hyperinflation. Spend now, Obama indicated, or pay for failing to do so later when the economy implodes completely.

But perhaps the most sobering part of his address wasn't his appraisal of the current state of the economy but what might loom in coming decades as the greatest danger America confronts -- being outpaced by foreign competitors.

Obama didn't make the connection directly, but the blunt fact is that investing in education and health care can help ensure that America is able to compete a decade from now with China, India and other countries that are trying to steal an economic march on it. In my view, Obama is clearly very worried -- and correct to be worrying -- about America's ability, after decades of self-indulgent profligacy, to remain an economic superpower. A crumbling education system and a patchwork health care system is a poor foundation for maintaining, let alone strengthening, American economic might. As Obama put it, "If we don't invest now in renewable energy or a skilled workforce or a more affordable health care system, this economy simply won't grow at the pace it needs to in two or five or ten years down the road. If we don't lay this new foundation, it won't be long before we are right back where we are today."

Obama is cranking high voltage to jump start the shift toward a new American economy. The program he announced at Georgetown should get some sparks flying. Now his administration and Congress have to implement it.

Comments

[Moonlighter]

Yes, we need to reinvest in America continually. The high school dropout rate alone is going to be a huge burden on this country. In terms of setting a new direction, clean energy and the Four R's mentioned above are low hanging fruit. The challenges will be in the details of course and it may take a generation to get there but we need to start now to have a shot at it. The people in the developing world are sick of death, poverty, and disease. They will sacrifice for a better future. Will we?

My own way to reinvest in America is through The Human Levee Music Project, http://www.humanlevee.com. It's a benefit recording for New Orleans which uses Crescent City musicians. We can't just snap our fingers and save the world, but we can make most of it a lot better than it is now.

[FrankenPC]

I'm an avid independent liberal who advocates socialism in certain critical sectors like health.

THAT being said.

When Clinton was in office, he balanced the budget. How did he do this? By closing military bases and performing massive military and department of energy cuts (among other cuts). The side effect of the DoE cuts was a massive shutdown in university research which is the lynch pin of our technology edge that we love so much in America. SO many fundamental research projects simply disappeared.

The US USED to be the epicenter of fundamental science research. Russia and France following close behind. Now? We make iPods (well, we don't actually make them. Someone overseas makes them). The genius's behind such stellar creations as the SR-71 and, literally, rocket science are greatly diminished.

I'm sure some of my facts are wrong. But, my dad, a high energy physicist, lost his job at UCSD because of DoE cuts. So, I took it kind of personally. He had a PHD from Princeton. You know...where Einstein resided. He was laid off. A great mind.

What I'm meandering about is this: I sincerely hope Obama doesn't drastically cut the budget behind most of our fundamental research (DoE/Military/NASA). It's what led to everything from LASER's to microchips. Having a basic education is important, but being the best of the best requires a whole lot more than that.

[dontvote4him]

Clinton signed a balance budget bill created by the republican congress. You should have seen him kicking and screaming before signing the bill. Oh you must have missed that.

[RedneckDem]

You didnt complete your sentence-

Clinton signed a balance budget bill created by the republican congress after 12 years of massive republican deficits during the Reagan and Bush Sr presidencies.

[FrankenPC]

Uh...it was his election promise. You must have missed that.

[AnnfromCA]

We have lost the competitive markets over and over. Some of our loss is due to the obvious....our lifestyle simply can't compete with the low wages that sustain people in other places. Some is due to greed. I agree....the arrogance factor can't be dismissed.

What I don't yet see is any real solution. Please don't say education.

That's not the deal.

[JaneK13]

As the government throws more & more money at public education, the teacher's union pensions get bigger & bigger. Teachers make more after they retire than they did when they were working., not to mention the large pensions of union officials who never even teach. Sounds like the UAW workers at GM, where a huge chunk of the price of every new car goes to pay somebody's pension. What's wrong with this picture?

However, education IS the answer if we would allow private schools to compete for education tax dollars. Competition fosters excellence; the government monopoly fosters medicocrity, even political waste & corruption.

[RandVictims]

Hey! Way to stick to false propaganda and failed ideas!

[RandVictims]

What would a "real" solution be?

Most Americans don't even have a "Lifestyle" anymore. The majority of Americans now work to merely exist. Now that we can no longer borrow to sustain a lifestyle, it's becomming more and more obvious to the working class that they don't have wealth. All the wealth was concentrated to the very few and now we work ourselves, often literally to death for little more than nothing.

Any *American* solution would have to include a *strong* middle class. The status-quo Reagan/Friedman "two-class" system is not an option nor will the American people accept it.

[sounder55]

How was the wealth "concentrated"? That implies someone was handing it out. The only ones who can hand out wealth is the government. You also imply that is is beyond one ability to get an education or experience and make more money. The only thing that can stop one forward progress is themselves and/or government. Yet you champion the very thing that creates so much havoc. Why?

[publanski]

education

[terramartom]

Thinking about America's future. What a fantastic concept!
Our past politicians and present politicians have been dismal failures at best.
It is high time for new thinking that isn't new, just rational!
Good job President Obama.

[USA1776]

The man is right. America's time has come and gone; we need or rebuild and revive.

[Dalpine]

Finally the end of freedom.

[PiscesPrincess]

you haven't a clue, do you. sad.

[RedneckDem]

What freedoms? Give me some examples of how your personal, Constitutional freedoms will be affected by changes in the way we do business. For some odd reason you seem to be confusing a Democracy that guarantees personal freedoms with a Privatized Corporation that only looks out for themselves.

[dashboard]

I agree. The freedom to lose your job, your home, your dignity, your life savings...wait that's already happening. I will take freedom 2.0 under Obama.

[momof3inGA]

Well said!

[iridium53]

Talk is cheap.

The only action evident to most people so far is the transfer of enormous amounts of money from taxpayers to individual bankers' compensation plans.

Hundreds of thousands lose their jobs each month, and the banksters get bigger and better salaries - at taxpayer expense. That's the only result so far.

No legislation introduced - not one bit - to make these banks that are "too big to fail" any smaller or responsive. Just talk.

“Execution is a systematic process of rigorously discussing hows and whats, tenaciously following through, and ensuring accountability.” – Larry Bossidy and Ram Charon, Execution: The Discipline of Getting Things Done.

"Plans are only good intentions unless they immediately degenerate into hard work." – Peter Drucker

Stop the talking. Start the doing.

[Lochmon]

Whenever possible, doctors try to stabilize the vital signs before beginning major surgery.

[iridium53]

True. Doctors do try and establish stability before surgery.

Doctors also try to establish a real diagnosis of root cause based on actual evidence before surgery.

Surgery before a diagnosis based on evidence is malpractice.

I must have missed the diagnosis phase here. I may have missed it, but have there been investigations (not Congressional hearing shows, real investigations) on what the cause of this was? DOJ indictments?

What we see is that the Wall Street connected Summers and Geithner have a theory. But no investigations started. None mentioned in plans.

But, they sure have done a lot ot stabilization. And, the banksters have profited nicely from it. Again.

[JaneK13]

Wasn't "talk, just talk" one of the president's campaign slogans? As I recall, it was the most successful applause line. Watching Georgetown today, they are still applauding "talk just talk."