January 7, 2013

President's Economic Plan

The President is doing a poor job of explaining our economic problems, and the solution, to others in Washington and the public. Those who disagree with him that we need further government stimulus now, when private spending has declined, say these are not ordinary times.

These economists and politicians say an error was made when the country continued to run up deficits in times when the private sector was doing well.  The last decade was a good example. While the boom in the housing bubble was growing the government continued to run deficits and refused to pay down any debt. Two wars were draining our treasury while our President encouraged us to continue buying ice cream at Cold Stone.

As a result, when this near depression hit we had very little to spend. The proponents of austerity point out that we have put ourselves in a corner where increasing our debt further could result in a total collapse of the economy. I am convinced we are not there yet. However, there is a large portion of politicians and the general public who need convincing.

The President needs to take on the role of explaining his position. This will not be accomplished with one grand speech. It will take an F.D.R. type campaign where the President, with assistance from professionals,  talks directly to the public about the problems and solutions.

The President needs to explain why we still have room to borrow, how government spending on infrastructure, education, research and development will not only spur the present economy but allow us to be more competitive in the future.

The President also must describe the future, stating how our debt will be paid down over time and running deficits by the government during times of growth and prosperity can no longer be allowed. The President's economic plan has not been accepted because he has done a poor job of explaining it. He needs to use his excellent campaign staff to run this campaign to convince the public.

This will define his presidency.

No comments:

Post a Comment