As He Manages Transition, Obama Under Pressure To Act Quickly On Economy
With Obama planning his transition, meeting with his economic transition team and holding a press conference today, it's worth noting the extraordinary pressure he is under to be perceived as acting quickly, particularly with regard to the economic crisis -- before he becomes president.
Obama is reported to be devoting a great deal of time right now to picking a Treasury Secretary, and most news accounts say he's divided between Lawrence Summers, who held the post during the Clinton administration, and Timothy Geithner, president of the New York Federal Reserve Bank. But Dems in Congress are divided between the two picks, and liberal bloggers have mounted a campaign against Summers, suggesting that picking him could antagonize the Dems' liberal wing.
Meanwhile, some of Obama's own economic advisers are already beginning to pressure Congress, laying the groundwork for action once Obama takes office. Governor Jennifer Granholm, a member of his economic transition team, sent a letter to Congressional leaders urging them to finance public infrastructure projects, extend unemployment and food stamp benefits and pony up aid for the ailing auto industry.
Granholm is a strong supporter of a Congressional stimulus package, which Obama also supports.
Obama's performance this afternoon at his first press conference as President-Elect will obviously be key. To the degree that he can project a sense that he's swiftly taking action, it could have a calming effect that could make actual governing on the economy easier for him once he takes power. A lot to keep an eye on today.
I've posted my own thoughts on his dilemma, but I thought I'd add that he's in a tough spot. He's inherited economic responsibility without any corresponding authority. In that sense, at least, I don't think it's fair to judge him on his performance over the next few weeks - or at least, to read too much into it. For now, he has to project outward calm, stability, and cautious optimism. Any more sweeping changes won't be announced until he's in a position to implement them.
November 7, 2008 12:18 PM | Reply | Permalink
agreed, if he can project calm now, it'll make governing easier later
November 7, 2008 12:24 PM | Reply | Permalink
Fly,
I think Obama has moral authority and political will...which will go a long way to manage the economy.
November 7, 2008 12:37 PM | Reply | Permalink
Moral authority and political will are important - but the ability to formulate and implement policy is indispensable. In the interregnum between his election and inauguration, FDR remained detached from economic discussions, despite Hoover's entreaties for aid in crafting and passing a balanced budget. Until a president is sworn in, all he can do is posture, and project an aura of calming authority. I expect Obama to do exactly that this afternoon. But I don't expect him to push for a sudden change of direction, or to tout new initiatives.
November 7, 2008 1:10 PM | Reply | Permalink
More than anything, Obama has character. He has presence. His moral authority is part of that. But I view him as right now the person in the country most able to calm people, to give them hope. With bush, there's been such a sense that everything is drifting, that his words are empty, and any promises are worthless.
Simply by coming out and saying, over and over, that they're working on this, that it's a priority, that he understands the gravity of the situation, that to me is like the calming words rescuers give to people trapped after an earthquake: We're working to get you help. We're coming to get you. Just stay calm and be patient.
I think people are willing to be patient, knowing that help is coming, that words mean something, that our waiting will not be in vain.
I feel better just know that. I can trust the one who says it. I know it won't be easy, but I don't feel alone, I don't feel so helpless, and I sense a huge change in the mood of people everywhere I go.
November 7, 2008 3:23 PM | Reply | Permalink
Everyone wants a piece of the pie.
November 7, 2008 12:19 PM | Reply | Permalink
Not me. I earn a little more than the median income here in Kentucky, and while that means I can't get a new car this year like I hoped, I do NOT need another fucking stimulus check.
Extend unemployment benefits, increase food stamps (100 percent at least - could you eat on $10 a week?), increase the minimum wage and for pity's fucking sake pass universal health care.
None of those things will benefit me personally, except to the extent that when we all do better, we all do better.
THAT will be enough to prop the economy up until you can get $100 billion in infrastructure projects up and running.
November 7, 2008 12:55 PM | Reply | Permalink
I don't care who Obama chooses as the Secretary of the Treasury. Either of the 2 possible candidates will be good.
I just want someone who will steer the economy in the right direction.
My feeling is that it is Obama's choice. Liberal bloggers may bitch and complain but the bottom line is that we are in a ditch in terms of the economy and I feel that either of the 2 will do a great job.
November 7, 2008 12:31 PM | Reply | Permalink
Agree.
I voted for Barack Obama because I believe he has the talent, brains, integrity, courage and energy to lead this country in these rough times.
I trust Barack to make the right decisions. I can't say the same, alas, for every liberal on the Internet.
November 7, 2008 12:39 PM | Reply | Permalink
I have qualms about putting folks in charge of cleaning of a mess that they were on board at the time it was created. But then it was Roosevelt who said he put a thief in charge of the thieves, because he would know best what devious tactics they would play and could best thwart them in response to criticm following his appointment of Joseph P Kennedy as chair of the newly created SEC despite Kennedy having continuing to sell stocks short as the market crashed in 29.
November 7, 2008 12:44 PM | Reply | Permalink
So the press conference is extremely important. The story of Obama's campaign and victory is littered with speeches and debates that were supposed to be "the most important moment in this campaign". At some point, will we be able to take a breath and just view events as, well, "events", rather than the.defining.moment.of.his.administration/campaign/life?
P.S. Thank you for the personal reflection on the meaning of this election for your son.
November 7, 2008 12:35 PM | Reply | Permalink
Given the MSM's tendency toward hyperbole, events being viewed as events won't probably happened until after at least the first 100 days. And that's only if there isn't some new crisis that rears its head (like Putin's coming over Alaska?).
November 7, 2008 12:46 PM | Reply | Permalink
I'd love to see a thread at TPM for contributors to change.gov.
Am I really off-topic? I hope not. I'd love to see Ellen's suggestions to Obama on change.gov offered also to TPM readers, for example. Tena??
What's the best possible use of the Internet and the transparency and communication aspects thereof? Answer: too many to count, but welcome!
November 7, 2008 12:42 PM | Reply | Permalink
I don't care what Summers said or did at Harvard if he is the best candidate. And I think all the push against Summers could backfire the same way the initial push to get Sen. Clinton chosen as Barack's VP backfired as it painted him onto the corner.
Timothy Geithner would be a fresh start and he has bi-partisan support and respect.
November 7, 2008 12:43 PM | Reply | Permalink
I agree with you Jonze.
I just keep saying the same thing - if this is who President Obama wants in the position - I'm not going to argue. I don't have to work with these people.
I trust his judgment and the judgments of the people around him.
November 7, 2008 12:48 PM | Reply | Permalink
I'm afraid those who are pushing so hard against Larry Summers are putting Obama in the position that if he decides to choose someone else, the press will portray it as him having "caved" to the liberal blogosphere.
November 7, 2008 12:52 PM | Reply | Permalink
I think I'd prefer Geithner, but only because he's new, which isn't really a valid reason to support someone.
I think all the debate and discussion is excellent. One of the disastrous characteristics of the Bush/Republican approach is the lockstep mentality that perpetuated everything they did.
What worries me (concern troll alert!) is that this healthy discussion gets translated into "Democrats in characteristic disarray and Obama is having trouble managing the Democrats" by MSM. (Never mind that the job of the President isn't to "manage" Congress, even if 8 years of Bush behavior says otherwise).
November 7, 2008 12:52 PM | Reply | Permalink
Here's what I think - he knows he has to hit the ground running.
This transition team consists of people who know how to make the White House and government operate. They are experienced and right now he needs that.
The worst mistake, I think, that a president who comes in on the wave of Change makes is to bring neophytes in with him - no experience to navigate the godawful waters of DC!
Big mistake - he needs all the experience he can ahold of to make this transition work smoothly.
November 7, 2008 1:05 PM | Reply | Permalink
Word. There's no time to waste. Bush is a vacuum and Obama has to step in and fill it. Even though he's only President-elect, it's him that people are looking to for leadership. Recessions are mostly psychological, and Bush's careless talk after the 2000 election made things worse. Obama has to project calmness and competence.
November 7, 2008 1:13 PM | Reply | Permalink
See Jimmy Carter and his Georgia Mafia.
November 7, 2008 1:22 PM | Reply | Permalink
Pres. Obama was elected to handle it, so let's let him and try not to second guess his every move.
November 7, 2008 1:04 PM | Reply | Permalink
Amen!
November 7, 2008 3:28 PM | Reply | Permalink
If Barack continues to project the calm and competence he did throughout the campaign, and provides us with an outline of what he plans to do on the economy, he will be just fine. He has a team of experts with very different viewpoints, and he is smart enough to pick and choose based on his own vision. He is even seeding the ground in Congres for when he takes office.
It is just such a relief to actually trust a leader's judgement. Even if things get worse, which I'm sure they will, I have confidence in this guy, and those around him. They can't work miracles, but they won't screw it up any more than it already is, which after W, is really saying something.
November 7, 2008 1:18 PM | Reply | Permalink
I agree. I am sitting back and paying attention, but am not wringing my hands over who he will select (though I am eagerly anticipating each new announcement).
I have confidence that he will surround himself by a variety of people who will all work to get the job done. That's one of the reasons I voted for him; I trust his judgment. Imagine that! What a new and wonderful feeling this is for me, to trust the judgment of a president!
November 7, 2008 1:38 PM | Reply | Permalink
It is just such a relief to actually trust a leader's judgment.
Word! Straight up!
November 7, 2008 3:29 PM | Reply | Permalink
Seems to me that the one thing Obama has demonstrated most clearly in his campaign is the ability to pick talented people, give them the room to work. Subsequently, the Emanuel pick speaks of sober realism, and sends a clear message of intent.
I think Obama is well aware of the stakes and the urgency. And I really do think he'll appoint someone he thinks can get the job done, and will expect that it get done.
I'm also sure he's more aware than anyone that he doesn't have much time for anything. I expect him to move decisively on a number of fronts sooner rather than later. The only real question will be how the economy shapes his plans.
We could very well see the sort of big thinking we've wanted for so long being put into action relatively quickly, simply for the fact that this crisis demands action, the people see the need for boldness and comprehensive approaches, and we have a new president who can see all this, and knows the window won't be there for long.
If 9/11 was the perfect pretext for a reimagined US from the hard right, our financial meltdown is the perfect context for progressive ideas on a number of interrelated fronts.
November 7, 2008 1:28 PM | Reply | Permalink
I agree with trust Obama's vision and context until proven otherwise,,,,, in any event, how about Krugman in Treasury at head or somewhere. Leaving Princeton for DC would be a major sacrifice, however.
November 7, 2008 1:51 PM | Reply | Permalink
Really.
How does anyone know that these dream candidates even want the jobs? LOL!
If I were any of them, I'd think twice. This economy is scary.
November 7, 2008 1:57 PM | Reply | Permalink
Being Treasury Secretary is about more than being a good economist. It's as much about managing a large federal bureaucracy. It's not clear that Krugman has the skills for that.
November 7, 2008 2:41 PM | Reply | Permalink
Agree 100%. Krugman would be a good candidate for the WH Council of Economic Advisers, maybe even a chair. That's the place within the administration for economists. And I don't think it's a full time post so Krugman could still keep his day job at Princeton. He might have to drop his NYT column, though.
November 7, 2008 3:17 PM | Reply | Permalink
No matter where he is, he'll be providing advice and counsel. (we need it too)
November 7, 2008 3:33 PM | Reply | Permalink
One point:
Infrastructure should NOT = highway sprawl.
If Obama is to keep his environmental, as well as his economic, commitments: we should be moving quickly to insist on mass transit infrastructure, and local road and bridge repair - all of which provide jobs and get workers to jobs.
But this should NOT be used as an excuse to build more and bigger highways to facilitate unsustainable sprawl development. And when I hear infrastructure being equated with highways, I worry about that a lot.
November 7, 2008 2:20 PM | Reply | Permalink
Excellent point.
Infrastructure is mass transit, repair of existing highways, schools, bridges, parks, community centers, public housing, recreation - just like in the '30s with the CCC and the WPA.
But today it also means wiring the nation for broadband, large renewable energy projects (wind, solar and geothermal) and environmental cleanup, not to mention rebuilding New Orleans.
21st-century infrastructure should put NEW highways at the bottom of the priority list.
November 7, 2008 2:30 PM | Reply | Permalink
Infrastructure imporvement also has a key homeland security component that should not be overlooked.
November 7, 2008 3:19 PM | Reply | Permalink
From what I've been reading, Bush has been dynamite on the transition front.
Even though he only got this one thing right, I'll give Bush credit. You can see by how Obama is comporting himself that there is no resistance from the current administration. By all accounts it's going to be one of the best transitions ever.
Maybe it's because Bush just wants to get the hell out of there. I admit I was worried about the transition. Now I feel great about it.
I'm sure when all the pardons come in January I'll feel like crap again.
November 7, 2008 3:20 PM | Reply | Permalink
He has not been dynamite. Indeed his crew is busy dismantling regulations and tying thing up in knots - that will take Barack and his crew a long time to undo.
They're helping only insofar as Barack follows the path they're already on.
November 7, 2008 3:31 PM | Reply | Permalink
I'd be surprised if some people on the right didn't get up in arms about what he said about not being Nancy Reagan with a seance.
November 7, 2008 3:23 PM | Reply | Permalink
I hope the press in the room realized just what a difference it is to talk to and question a man who has the ability to verbally express himself intelligently, clearly and to the point.
It's a remarkable feeling not to feel embarrassed when your President speaks.
November 7, 2008 3:27 PM | Reply | Permalink
I'd be surprised if some people on the right didn't get up in arms about what he said about not being Nancy Reagan with a seance.
Posted by haaz
Guarantee: Sean Hannity will be going ballistic tonight over that comment.
November 7, 2008 3:29 PM | Reply | Permalink
Good. Let him get distracted with things like that!
November 7, 2008 3:30 PM | Reply | Permalink
My thoughts exactly. It was a good natured joke, trying to bring a little levity to an otherwise somber briefing. And it's not like that hasn't been joked about before.
But yeah, let them go apeshit about this. The election is over. We won. I'm not really gloating. It's just that during the election, if he had said something like this and the wingers jumped on it, I would have lost sleep worrying if whether or not it would cost Obama 1 or 2% of the vote in Ohio. Now, who cares?...all the harping in the world about harmless jokes like this one isn't going to prevent Obama from the governing the way he see fits, the way he needs to govern. And they're the ones who will look small for focusing on stuff like this, just like they did during the election that they lost.
November 7, 2008 4:13 PM | Reply | Permalink
President-elect Obama needs to pick a demand-side economy supporter. This nation cannot sustain a continuation of the supply-side, trickle-down philosophy which has produced our current nation of pee-ons (Credit Thom Hartmann).
November 7, 2008 3:38 PM | Reply | Permalink