Showing posts with label economic team. Show all posts
Showing posts with label economic team. Show all posts

Sunday, December 7, 2008

Frank Rich: The Brightest Are Not Always the Best

By GottaLaff

Barry Blitt
In the Obama transition, our Clinton-fixated political culture has been hyperventilating mainly over the national security team, but that’s not what gives me pause. Hillary Clinton and Robert Gates were both wrong about the Iraq invasion, but neither of them were architects of that folly and both are far better known in recent years for consensus-building caution (at times to a fault in Clinton’s case) than arrogance. Those who fear an outbreak of Clintonian drama in the administration keep warning that Obama has hired a secretary of state he can’t fire. But why not take him at his word when he says “the buck will stop with me”? If Truman could cashier Gen. Douglas MacArthur, then surely Obama could fire a brand-name cabinet member in the (unlikely) event she goes rogue.
Now, on to the economic team:
Given that John McCain’s economic team was headlined by Carly Fiorina and Joe the Plumber, the country would be dodging a fiscal bullet even if Obama had picked Suze Orman. But I keep wondering why the honeymoon hagiography about the best and the brightest has been so over the top. [...]

No doubt the Pavlovian ovations for the Obama team are in part a reaction to our immediate political past. After eight years of a presidency that valued cronyism over brains (or even competence) and embraced an anti-intellectualism apotheosized by Sarah Palin, it’s a godsend to have a president who puts a premium on merit. I also wonder if a press corps that underrated Obama’s political prowess for much of the campaign, demeaning him as a professorial wuss next to the brawny Clinton and McCain, is now overcompensating for that mistake. No one wants to miss out a second time on triumphal history in the making. [...]

But we ignore the past’s lessons at our peril. In his 20th-anniversary reflections, Halberstam wrote that his favorite passage in his book was the one where Johnson, after his first Kennedy cabinet meeting, raved to his mentor, the speaker of the House, Sam Rayburn, about all the president’s brilliant men. “You may be right, and they may be every bit as intelligent as you say,” Rayburn responded, “but I’d feel a whole lot better about them if just one of them had run for sheriff once.”

Halberstam loved that story because it underlined the weakness of the Kennedy team: “the difference between intelligence and wisdom, between the abstract quickness and verbal facility which the team exuded, and true wisdom, which is the product of hard-won, often bitter experience.”[...]

For some of J.F.K.’s best and brightest, Halberstam wrote, wisdom came “after Vietnam.” We have to hope that wisdom is coming to Summers and Geithner as they struggle with our financial Tet. Clearly it has not come to Rubin. Asked by The Times in April if he’d made any mistakes at Citigroup, he sounded as self-deluded as McNamara in retirement. [...]

Since that interview, 52,000 Citigroup employees have been laid off but not Rubin, who remains remorseless, collecting a salary that has totaled in excess of $115 million since 1999. You may be touched to hear that he is voluntarily relinquishing his bonus this Christmas. Rubin hasn’t been seen in a transition photo op since Nov. 7, and in the end Obama chose Paul Volcker as chairman of his Economic Recovery Advisory Board. This was a presidential decision not only bright but wise.

Monday, November 24, 2008

VIDEO: President-elect Obama intros his economic team, holds press conference: Liveblog

By GottaLaff

UPDATE: Here is the text of his remarks (no questions) in full. Now you can catch all my mistakes.

An apt intro to this post:

Stimulus Package Will Be Waiting for Obama

Democratic sources tell ABC News that President-elect Obama's transition team "is working with lawmakers on Capitol Hill so that on Mr. Obama's first day in office, January 20, 2009, an economic stimulus package has passed both house of Congress and is awaiting his signature."

Reports suggest the size of the package may be $700 billion.
The markets are up 311 as I type this.

Liveblogging Obama's Big Presser
:

Obama: The economy sucks [obviously paraphrased]. We can't underestimate our capacity to overcome these challenges. It won't be easy. We need the best minds to guide us, which is what I sought to do in assembling my economic team. They share my belief that we can't have a thriving Wall St. w/o having a thriving Main St.

He names: Geithner, Summers, Romer, and Barnes.

Tim Geithner (treasury)will waste no time, and already has insight into the markets and ways to revive them. It's a global crisis, and we'll need to reach out to countries around the world. He has international experience, so he is uniquely suited.... He speaks Japanese and Chinese... He's served under Dems and Republicans... He's been an honest broker...

Larry Summers: (head of economic council) Brings skill, intellect, experience... He has guided us through many international crises... [Listing his accomplishments]... He's earned a global reputation of getting to the heart of challenges... He'll coordinate economic policy in the White House.

Christina Romer (chair of econ. advisors): Leading macro economist and historian. [giving her resume now] Has researched tax policy and recessions, praise from Rs and Dems.

Melody Barnes (dir. of domestic policy council), working with team to chart course to economic recovery: Health care reform included. [giving her resume now] Was chief council to Ted Kennedy. Protected civil and women's rights, religious freedom.

He's outlining his goals... saving jobs, Wall St./Main St. recovery... Restore confidence in markets as well as middle class families... He wants daily briefings from his team... Hopefully the new Congress will get to work immediately on an economic plan to hit the ground running. Families can't keep waiting/hoping for a solution. ... This will not be easy, no shortcuts or quick fixes to something that's been many years in the making. Full recovery will not happen immediately. There will be meaningful cuts in the budget ... and sacrifices.

I believe in the spirit and resilience of this nation. We'll succeed if we put aside partisanship and politics and work together.

Q: Where is the money going to come from?
O: I want to see it enacted right away, but can't get into number right now. My team will shape the details. The most important thing is that we have a consensus between conservative and liberal economist that we need a big stimulus package to jolt the economy back into shape, create 2.5 million jobs. Make sure the financial system is stable, too, simultaneously. We have to invest in clean energy, in health care, education to remain competitive. So deal with immediate crisis and lay groundwork for longterm growth.

Q: Couldn't hear this one.
O: My plan represents a net tax cut. 95% of workers will get a net tax cut. That's important because it's good for families plus we need it for stimulus. Put money in pockets so people can buy computers for school, deal with heat, groceries, etc. Plus, restore balance to our tax code. The Bush cuts were targeted to the wealthiest. To help pay for some of these expenditures, those who can pay more should pay more, whether through repeal or through not renewing tax cuts... my team will advise. But tax cuts will go to the vast majority of Americans. And the wealthiest will pay a little bit more.

Q: Size of stimulus package... as much as one trillion?
O: I can't discuss numbers right now. The team needs to recommend. There is a consensus across the political spectrum that we need a significant stimulus to jolt the economy. It needs to put people back to work, make investments, restore confidence in the business community that it will have customers. We'll do what's required. It'll be costly. Even if we did nothing for the rest of this year, we'll have a substantial deficit next year. Now we're adding, how do we pay for it? Answer: We have to first focus on getting economy back on track, create 2.5 million jobs, invest in growth over the long term. Then, reform how business is done in Washington, how the budgeting process works... so that we have a path towards a responsible budget scenario down the line. Short term: Boost the economy, create jobs. Long term: Reforms in Washington.

Q: Bush administration has been criticized for taking an ad hoc approach. How will you differ?
O: I don't want to look backwards. We have an unprecedented crisis. Some things didn't work, Paulson admits that. I want to make sure that moving forward, we are articulating what our end goals are, clarity and transparency to our plan. There may be adjustments, to adapt to the situation. But we want to provide clarity, not confusion. Plus: Even as we do what we must to stabilize the financial system, we also must recognize that a strong Main St. will reinforce a strong Wall St. Address home foreclosures, things that take place outside of Wall St.

Q: Auto hearings... did they make their case?
O: They have been the backbone of U.S. manufacturing. It's not just them, it's all the suppliers and related businesses that are at stake. We can't allow the auto industry to vanish. And we can't just write a blank check to them. I was surprised that they didn't have a better thought-out proposal. Congress told them to come up with a plan. We should help them, but we should expect than any help is designed for a strong, sustainable industry. They need to give us some clarity. We're entering into a new energy economy that's competitive globally. That's the kind of plan we need to see, not more job loss.

Q: How should the second half of the rescue money be spent? Are you talking to the administration?
O: I spoke to Bush and Bernanke today. We have to do what is required to keep the financial system working and capital flowing, important for all of us. Bush has said he has the same attitude. A lot of authority has been given to the administration. We need to make sure that authority is used forcefully to stabilize the situation in the coming weeks. I'll make further assessments as the administration and Paulson/Bernanke provide me information.

Sunday, November 23, 2008

Obama's announcement: Who will lead his administration's efforts to revive the economy

By GottaLaff


If you want to watch the Obamannouncement, it will be at
11 a.m. CST (12:00 p.m. EST) on Monday.

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