Despite the clear and present danger of the republican position for austerity and deregulation, the debt ceiling crisis and hostage negotiations, Obama is one of very few world leaders demanding a jobs stimulus. Sure, it's probably, in his mind, the launch of the next presidential campaign, but it's what we need. Reagan brought us supply side economics and now the GOP have so firmly ensconced themselves in it, if they fight this concept, I expect the invisible hand of the market will deliver them an electoral punch so hard, they will have black eyes and a concussion that will take longer than Sidney Crosby to recover from.
I came across an article up in the Canadian Newspaper the Globe and Mail that is worth reading. I admit to stealing my diary title from the article in the Globe.
It's a bold move!
In his speech he said it would be paid for by as yet undetermined budget cuts adding the $455 Billion to the deficit commissions total for negotiations. IMO, that was a smart move, he could have cherry picked a few cuts which would just take away bargaining chips from the democrats on the commission. He also signalled that he would have a tax reform proposal to offer next week that would help balance the budget in the long term by taxing high earners and reforming medicare.
I believe this is the launch of his campaign, he has decided that he has a republican house who will not negotiate in good faith, he's gonna lay out his plan. If they block it, he can squarely lay the blame at their feet during the campaign. It's a good strategy IMO.
here's a couple of snippets from the article:
In a three-pronged assault Thursday, President Barack Obama, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Timothy Geithner laid the groundwork for the most aggressive round of economic stimulus since the financial crisis, attacking the notion that heavy debt burdens have disabled the ability of policy makers to do something about elevated jobless levels.
The mere suggestion of spending government money at time when the financial markets and legislatures the world over are obsessed with debt will be interpreted as either bold or dangerously naive. European governments, whose debt burdens are similar in proportion to that of the U.S., are implementing sharp spending cuts to satisfy anxious bond traders.