Senator King Touts Reinvestment Side of the Stimulus on Political Chowder

Former Senator Wayne King, now President of Moosewood Communications, appeared this week on Political Chowder with Arnie Arnesen where he placed a heavy emphasis on the Reinvestment side of the Stimulus plan, particularly enhancing our position with respect to green energy and green jobs.

Watch Political Chowder.

An Economist Mind with a Mother's Intuition

One of the best blogs out there when it comes to understanding the current economic crisis and the efforts to do something about it is the Economist Mom, edited by Diane Lim Rogers of the Concord Coalition.

Lim Rogers declares the blog as the place . . . “where analytical rigor meets a mother’s intuition”–where honest math and sound economics is communicated in a way that makes common sense and is relevant to our daily lives. The issues they discuss span a wide and unusual range as suggested by the blog’s title–from “do deficits matter?” (yes) to “can I get my family life in perfect order?” (no, she can't). Lim Rogers says that "among the broader policy issues there will be a particular focus on the economics of fiscal responsibility, with the hope that this blog will be part of a newly effective, “grassroots” movement involving ordinary American parents and grandparents, encouraging our policymakers to “do the right (fiscal) thing” for the sake of our children and grandchildren.

I'm a big fan of Lim Rogers, but if there is a criticism that I would make of the over-arching theme of the blog it is that by relying on a "mother's intuition" to generate the common sense side of the blog, Lim Roger's sometimes falls short on understanding the strategic choices that need to be made in order to find that sweet spot where fiscal responsibility and a mother's intuition meet meet effectiveness of effort.

A recent case in point was Lim Roger's (vocal) appearance tonight on NPR's Marketplace. Unlike so many other commentators, Lim Roger's understood that the bill being considered by Congress right now has two key components: stimulus and competitiveness. She gave a concise and clear explanation of the two components that should be framed and placed right in frot of every pundit in the country so that they understand it as well. However, on her Blog she seems to make the case that we can afford to wait on the parts of the package that will take longer to get into the economy but will position the US to be competitive in the global economy. This is where she's wrong and a bit of common sense and mother's intuition will go a long way toward understanding why.

If you think that the partisanship and posturing over the current bill is bad - just wait until we are another trillion dollars in the hole. Even the most far sighted folks will be wringing their hands about spending the money needed to achieve the goal of creating a "smart grid" or bringing some other sustainable technologies to market. In fact, I would make the case that if we had to choose between immediate stimulus and investments that will ensure our competitiveness for the future, that we should endure the hardship of short term for the promise of the long term.

When the crisis of 9-11 generated international goodwill that could have been turned into an opportunity to unite the world in an all out effort to end our dangerous dependence on fossil fuels, President Bush told us all to go shopping and he missed the most powerful teachable moment in recent history. Woe unto us if President Obama is equally shortsighted.

If we sacrifice what is important for what is urgent, we will emerge from this recession as a second rate economic power without the will or the courage to take the action that will be necessary to make us competitive for the long-run.


"Deep Roots" Poster and Card

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All that is gold does not glitter,
Not all those who wander are lost;
The old that is strong does not wither,
Deep roots are not reached by frost.

J. R. R. Tolkien

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Should Stimulus Package Include a Buy-In Provision for Republicans?

Should Democrats Be ready with an Alternative if Republicans Stonewall on Stimulus Package?

It's becoming increasingly clear that President Obama - and all of us, frankly - need to have a clearer definition of what it is to be bi-partisan. Further, it may be necessary for the President to share those parameters with the rest of the country and to explain why it is important and why, in its absense a partisan approach may be necessary.

Bi-partisanship suggests, and demands, that each political party be willing to step outside of the construct that has been created by institutions and history; to accept that there will be times when each of us is outside of our comfort zone and that being there is an imperative imposed upon us by history and by the willingness of the other side to commit to the same guiding principles.

Bi-partisanship calls for compromise, cooperation, sacrifice and - dare I say it: shared pain.
Defining it may be a case of how it feels, ultimately. But we are getting a pretty good look at what it isn't from some of the Republican leadership in the House right now.

Against the advice of almost every major economist, the Republican leadership in the House is insisting that a substantial portion of the Stimulus Package be dedicated to tax cuts. Further, they suggest that other portions of the package be scaled back, particularly those that spend funds to create and preserve jobs and to enhance and speed up infrastructure spending.

So far, it appears that President Obama is walking a tightrope between the parties by including some tax cuts and tax credits in his package. Democrats feel that it's too much and Republicans feel that it's too little, which probably makes it about right from a political perspective. However, Republicans are asking for more and threatening to withhold their support.

Worse still, it is beginning to appear that the Republican leadership may think that they can have their cake and eat it too, or more accurately, that they can lard up the bill with tax cuts for their friends and then vote against it because they disagree with its other provisions. More and more, there are rumblings that the approach they are inclined toward is to take advantage of President Obama's call for bi-partisanship by forcing the President to include massive tax cuts and with no commitment of support from their side. Thus positioning themselves to get what they want while accepting no responsibility for the outcome. Worse still, positioning themselves to snipe from the sidelines at every bump in the road ahead.

Successfully creating a united front between Democrats and Republicans, standing together as Americans, makes a compromise plan worth the risk. However, if the Republican leadership insists on playing politics, perhaps the President and congressional leaders of good will should be ready with an alternative that invests more heavily in real job creation, energy independence and long term capital investment. In other words, if they Republicans are going to snipe from the sidelines anyway, it may be that supporters of the bill should do what we are most confident will work and give the Republican leadership something to snipe about.

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"Watching the Sunset from Mount Monroe"

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