As we all know, the US economy is a wreck. Unemployment up, consumption down, credit tightening, foreclosures rising etc. Hard times are coming, and in true Keynesian fashion, we need some sort of government stimulus to prime the pump and keep us and the rest of the world afloat. At the moment, Pelosi, Reid and the rest of the Congressional leadership want to come back to Washington and do something, even with the lamest of ducks looming with a veto pen gripped in his clueless hands. President-elect Obama understands the urgency of the situation, and it seems he is moving behind the scenes to get something done. What he is doing, however, may be a sign of pure political genius, and forebodes greatness in the years to come.
At this writing, many newspapers are reporting that the present stimulus plan that will be presented should amount to about $61 billion (see this in the NYT for example). Most of what has been mentioned has been an increase in unemployment benefits, food stamps, aid to states and local governments, etc. Both Obama and the Congressional leadership realize that this is about as much as they can get by with while Bush still has the veto power, and it will do a world of good for many of our suffering fellow citizens. However, I believe our next President may be thinking ahead a bit.
Because, you see, this economy will probably need much more than $61 billion to get us out of this hole. Maybe even twice as much. And the big weapon of government spending that is out there is infrastructure. Roads, bridges, rails, schools, good old fashioned WPA shake the economic doldrums off stuff. Luckily, our soon to be president and our Congressional leaders understand this, and will most likely present a big package of public works spending early into the next administration. Herein lies the cheese.
President Obama also has other goals that he would like to meet early on, and that may have a bit more of a struggle through a hidebound Washington system. A new healthcare regime, energy independence, college assistance and so forth. Now, one thing we have to admit is that Barack Obama is an incredibly astute politician. Focus on the politician. He is surrounding himself with other Chicago politicians like Axelrod and Emanuel who also know how the game is played. Now, picture the Blue Dog or Rethug coming up to Rahmbo and asking for that new highway interchange with his name on it in early February. I'm sure it will be considered, if.... We can all see what that "if" will be. A vote for an energy bill could be worth a lot of cheese, and woe be to those who decide otherwise.
I'm sure that Barack and his team know who FDR was. I'm also dead certain they know who James Farley was, and if you don't this may help a bit. That's how it used to work, and I'm sure those lessons haven't been completely lost. Now, of course, times are different. The Rethugs/Fox Noise machine may succeed in halting a much needed stimulus. However, I do believe that President Obama has a mandate for serious economic change, and Congress will give it to him early on. And what goes on behind closed doors in DC will always go on. I'm just stoked that we have a President who realizes that sometimes you just have to set out a little cheese to get the rats to dance.