Happy Days Are Here Again - Barack Obama Era Begins
The song “Happy Days Are Here Again” was written in November, 1929, shortly after the stock market crash. It became Franklin D. Roosevelt’s 1932 election campaign song, and has been the unofficial song of the Democratic Party ever since. To many, this song evokes bittersweet emotions: an acknowledgement of hard times and hope for a brighter future.
The U.S. (and global) economy is in very bad shape, the worst since the Great Depression. President Barack Obama takes office at a time when we need hope and a new beginning. I don’t expect the Obama administration to fix the economy immediately, but I want to see significant action soon. Obama also faces major foreign policy and security challenges. I’ve heard much discussion about the Bush administration recently, and it makes sense to evaluate the outgoing administration now. I am much more interested in turning a new page and looking forward to the long-awaited and promised change. I essentially gave up on the Bush administration in 2005, after its inadequate response to Hurricane Katrina.
It’s very encouraging that a large percentage of Americans are happy with the Obama transition team and the incoming Obama cabinet choices. Obama has wisely crafted policies and decisions to unite us. In spite of gloomy economic conditions, optimism is in the air. Some of the ideological warriors are showing a willingness to collaborate on solutions. The Obama Era starts with an ideal that “we are in this together”, rather than the tired paradigm of the past: “us against them, survival of the fittest”.
We are in for a month-long debate about the 2009 fiscal stimulus package. Obama must work with the U.S. House and Senate to pass legislation that will produce new jobs quickly. State and local governments are facing bankruptcy. Many industries need some kind of “bail out”. Critics complain about federal spending and deficits, but we have no real choice other than to “print money” and inject the economy with many billions of new dollars. “The velocity of money” is an important concept. The federal stimulus must circulate money widely for it to work effectively. Funding “shovel ready” projects is smart and rebuilding U.S. infrastructure is necessary. This will create jobs quickly and strengthen our long-term economic standing.
Democrats prefer increased spending while Republicans emphasize tax cuts. The Obama proposal offers both. I suspect this is primarily a political decision rather than the best economic choice. Nevertheless, doing something reasonably effective now is better than fighting about the “perfect plan” for months. Rebuilding inner-city schools is a great idea even though some may label it as “pork barrel spending” and an “earmark”. Funding development, research, and production of green technologies is an obvious step and essential to our future. Restructuring the health care industry also must happen. Health care is simply too expensive for corporations, families, and individuals. How about giving nurses more power?
I hear some people still argue that Franklin Roosevelt’s New Deal was not effective. This argument is misguided. While it’s true that the depression lasted until World War II, Roosevelt prevented the economy from getting even worse. His administration gave people hope and that is worth more than a specific dollar amount. The U.S. depression of the 1930s was in the context of a global economic meltdown. Roosevelt kept America true to its democratic ideals while other parts of the world sank into totalitarianism. Roosevelt’s rebuilding efforts positioned the United States to enjoy tremendous prosperity once the depression ended.
Spring is just around the corner. Americans have many reasons to be grateful. By electing Barack Obama, we proved we can unite around good leadership instead of wallowing in the counter-productive ethnic conflicts of the past. Despite massive economic problems, we still enjoy a standard of living well above most of the world. As we watch the violence in the Middle East, we realize that we are lucky to be here instead of many other places.
Many people have strong opinions about the economy, regardless of their expertise on the subject. What I find interesting is that award-winning economists disagree with each other fervently. No one really knows what is the best solution or even what will work to some extent. Roosevelt did quite a bit of experimenting, and in retrospect, many believe he should have spent much more right away. Obama has a mandate for change. We need bold actions, professional follow-through, and transparency. The Obama team has great talent, and I find it annoying to get bogged down in tedious arguments about Timothy Geithner’s tax filing mistakes.
Economists agree that ultimately psychology plays a primary role in the economy. A dollar is worth a dollar because we all think it is. The word “credit” comes from the Latin word “credo”, meaning “I believe”. Our economy has fundamental structural problems. We cannot wish these away, yet optimism vs. pessimism impacts decisions throughout the economy. Ultimately, money is not important. We have our dignity and we have each other. I agree with many people who feel that Barack Obama is the right person at the right time. Through his strong leadership and intelligent decisions, we will overcome the huge financial hardships we face as individuals and as a nation. Happy days are here again, but we need to have some patience because it will take some time for the economy to recover.
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