"Hope Is Not A Strategy"
Benjamin Ola Akande is dean of the business school at Webster University in St. Louis. In this open letter to President Barack Obama, he offers his opinions on how to revive the economy and America's spirit.
Dear President Obama,
During the campaign, you offered America hope and promised to restore a civility and practicality to the nation's highest office so that, together, we could rise to the challenges and opportunities that lay at our doorstep. Now it's time to make some wise choices.
In your acceptance speech on the evening of Nov. 4, 2008, you were pointed in your statement that, "while we breathe, we hope." As president, your greatest challenge will be effectively leading a Cabinet of highly qualified and highly opinionated individuals who will undoubtedly have differing ideas on how best to resolve the major issues we face. Your leadership will be tested early and often, and while you have assured Americans that there will be setbacks and false starts, your willingness to make tough choices early on will set the tone for a revival of a shell-shocked economy and a battle-fatigued nation. Yet, the fact remains that hope will not reduce housing foreclosures. Hope does not stop a recession. Hope cannot create jobs. Hope will not prevent catastrophic failures of banks. Hope is not a strategy.
I would like to offer 10 priorities to consider:
1. The Deficit: Don't be concerned about increasing the deficit in the short term. There is an urgent need to stimulate the economy now -- not at any price, but almost. Your recovery plan must combine tax cuts and structured spending in areas that foster long-term economic growth, specifically energy, healthcare and education. This is one time when we need to act for today to ensure that tomorrow will be much better.
2. The Auto Industry: I want to urge you to reject extending additional bailout monies to the Big Three. Chapter 11 bankruptcy is the best thing that can happen to these automakers. They need help quickly, but not in the form of government largesse. This is a time for "tough love" and not enabling poor performance, corporate arrogance and unwise decisions. They will thank you in the long run.
3. The New New Deal: There is urgency to rebuild America's roads and bridges, but the real opportunity is to anchor your recovery plan on a renewed energy policy that is timely and targeted. The imperative should entail: 1.) A green bailout for U.S. automakers; 2.) Green infrastructure; 3.) Tax credit for companies to produce alternative energy; 4.) A construction program for a new smart electric grid; and 5.) Increased investment in mass transit using green technology. The projects must be shovel-ready to get people back to work immediately.
4. 2009 Homeowner Protection Act: Now is the opportunity to change the bankruptcy laws to protect homeowners from the vagaries of the marketplace. We have expedited Chapter 11 bankruptcy for businesses to keep them from going under when they run into financial turbulence, and we should do no less for homeowners. It does no one any good to force poor and middle-income Americans out of their homes, and we know that vacant houses destroy even the best neighborhoods. An expedited homeowner protection plan would allow for the restructuring of the mortgages of millions of Americans who are under water. Stemming the flood of foreclosures will reinvigorate the confidence of banks and provide a shot in the arm for the credit market, putting the economy back on the right foot.
5. Strengthening Middle Class America: Your administration should push to expand the earned income tax credit as a relief measure for the middle class and give Americans making less than $150,000 a $500 tax credit per person on the first $8,100 in income. This will increase the rate of spending and the rate of savings by the middle class, which will be a source of new capital to spur growth.
6. A Health Plan for All: The greatest fear among most Americans is the possibility of losing their jobs; with the loss of jobs comes the real possibility of loss of health insurance. We need a comprehensive program that provides health insurance to the unemployed and to the uninsured, and it must happen post-haste. For a nation of our wealth to have any of our citizens go without heath care is nothing short of criminal.
7. Rewrite Financial Service Laws: One of the key reasons for the current financial crisis has been weak regulation of the financial services industry. There needs to be a comprehensive overhaul of enforcement policies of the Securities Exchange Commission. Require disclosure and stipulate new accounting requirements.
8. Restructure Bailout: The first $350 billion of the financial market bailout has done very little to jump-start the economy. The next $350 installment must be directed at assisting homeowners and expanding consumer credit.
9. Foster a Bipartisan Approach: Divisive politics got us into this mess - unifying politics can help get us out of it. The country can no longer afford to see things in terms of red and blue or black and white. The enduring solutions will emerge from the gray.
10. Caution to Consumers: President Obama, I urge you to use your presidential pulpit to speak to Americans, to encourage them to be cautious and prudent in their spending. While consumer spending is a key to the economic revival, at times it may be wise to counsel consumers to -- in the words of former St. Louis Fed President Bill Poole -- "Put their foot on the brake way before they get to the stop sign."
What America needs, more than ever, is your ability to give hope through your leadership. May you have the inner strength to move this nation from uncertainty to certainty. I wish you well.
My Best,
Benjamin Ola Akande
By Benjamin Ola Akande
Copyright 2009 CBS. All rights reserved. Dear President Obama,
During the campaign, you offered America hope and promised to restore a civility and practicality to the nation's highest office so that, together, we could rise to the challenges and opportunities that lay at our doorstep. Now it's time to make some wise choices.
In your acceptance speech on the evening of Nov. 4, 2008, you were pointed in your statement that, "while we breathe, we hope." As president, your greatest challenge will be effectively leading a Cabinet of highly qualified and highly opinionated individuals who will undoubtedly have differing ideas on how best to resolve the major issues we face. Your leadership will be tested early and often, and while you have assured Americans that there will be setbacks and false starts, your willingness to make tough choices early on will set the tone for a revival of a shell-shocked economy and a battle-fatigued nation. Yet, the fact remains that hope will not reduce housing foreclosures. Hope does not stop a recession. Hope cannot create jobs. Hope will not prevent catastrophic failures of banks. Hope is not a strategy.
I would like to offer 10 priorities to consider:
1. The Deficit: Don't be concerned about increasing the deficit in the short term. There is an urgent need to stimulate the economy now -- not at any price, but almost. Your recovery plan must combine tax cuts and structured spending in areas that foster long-term economic growth, specifically energy, healthcare and education. This is one time when we need to act for today to ensure that tomorrow will be much better.
2. The Auto Industry: I want to urge you to reject extending additional bailout monies to the Big Three. Chapter 11 bankruptcy is the best thing that can happen to these automakers. They need help quickly, but not in the form of government largesse. This is a time for "tough love" and not enabling poor performance, corporate arrogance and unwise decisions. They will thank you in the long run.
3. The New New Deal: There is urgency to rebuild America's roads and bridges, but the real opportunity is to anchor your recovery plan on a renewed energy policy that is timely and targeted. The imperative should entail: 1.) A green bailout for U.S. automakers; 2.) Green infrastructure; 3.) Tax credit for companies to produce alternative energy; 4.) A construction program for a new smart electric grid; and 5.) Increased investment in mass transit using green technology. The projects must be shovel-ready to get people back to work immediately.
4. 2009 Homeowner Protection Act: Now is the opportunity to change the bankruptcy laws to protect homeowners from the vagaries of the marketplace. We have expedited Chapter 11 bankruptcy for businesses to keep them from going under when they run into financial turbulence, and we should do no less for homeowners. It does no one any good to force poor and middle-income Americans out of their homes, and we know that vacant houses destroy even the best neighborhoods. An expedited homeowner protection plan would allow for the restructuring of the mortgages of millions of Americans who are under water. Stemming the flood of foreclosures will reinvigorate the confidence of banks and provide a shot in the arm for the credit market, putting the economy back on the right foot.
5. Strengthening Middle Class America: Your administration should push to expand the earned income tax credit as a relief measure for the middle class and give Americans making less than $150,000 a $500 tax credit per person on the first $8,100 in income. This will increase the rate of spending and the rate of savings by the middle class, which will be a source of new capital to spur growth.
6. A Health Plan for All: The greatest fear among most Americans is the possibility of losing their jobs; with the loss of jobs comes the real possibility of loss of health insurance. We need a comprehensive program that provides health insurance to the unemployed and to the uninsured, and it must happen post-haste. For a nation of our wealth to have any of our citizens go without heath care is nothing short of criminal.
7. Rewrite Financial Service Laws: One of the key reasons for the current financial crisis has been weak regulation of the financial services industry. There needs to be a comprehensive overhaul of enforcement policies of the Securities Exchange Commission. Require disclosure and stipulate new accounting requirements.
8. Restructure Bailout: The first $350 billion of the financial market bailout has done very little to jump-start the economy. The next $350 installment must be directed at assisting homeowners and expanding consumer credit.
9. Foster a Bipartisan Approach: Divisive politics got us into this mess - unifying politics can help get us out of it. The country can no longer afford to see things in terms of red and blue or black and white. The enduring solutions will emerge from the gray.
10. Caution to Consumers: President Obama, I urge you to use your presidential pulpit to speak to Americans, to encourage them to be cautious and prudent in their spending. While consumer spending is a key to the economic revival, at times it may be wise to counsel consumers to -- in the words of former St. Louis Fed President Bill Poole -- "Put their foot on the brake way before they get to the stop sign."
What America needs, more than ever, is your ability to give hope through your leadership. May you have the inner strength to move this nation from uncertainty to certainty. I wish you well.
My Best,
Benjamin Ola Akande
By Benjamin Ola Akande
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Don''t worry about the deficit? That "bailout" money has to come from somewhere, Dr. Akande. To get it you have to raise taxes, borrow it or print it out of thin air. These kind of policies will destroy the dollar. This is SOCIALISM at its worst and the opposite of what this country was founded on - individual responsibility and self-reliance. I suggest you move to another country instead of helping to ruin this one.
Obama could be a saint and he wouldn''t be able to do anything if everyone else around him are as smart as apes.
Posted by menmotoscutr
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Of course they have opinions, they are in politics. Nobody in politics ever say that they don''t have an opinion, an idea or a solution to anything. If they didn''t they wouldn''t last a minute, because you wouldn''t let them.
No matter how obscure a subject everyone in politics has to have an opinion on it. When McCain and Obama didn''t have an answer on the importance of tire pressure to gas consumption they were jumped on as being uninformed on the future of oil supplies.
If anyone in government ever said, "I don''t know, I''ll have to think about it", you would demand their immediate removal as incompetent.
To Ola Akande''s suggestions, I would add these non cash items: (1) Order NASA to sell all of its assets to the private space companies now in existance. This could raise billions and save on the NASA budget tremendously. (2) Order all embassies/consulates to sublet space (where available) to freindly governments. This could raise a few bucks. (3) establish a BRAC commission for all overseas governmental, includes military, installations. Many have become obsolete. (4) AND THE MOST IMPORTANT ONE OF ALL - Empower federal employees to make suggestions to improve the agency they work in. Protect them from any possible reprisals. Reward them for significant savings by promoting them to the next highest GS level upon adoption of their suggestions.
Federal employees can make programs either work or die by their active cooperation or by unenthussiastic non-support. I know because I am a retired federal employee and saw many instances of this happen.
Obama actually HAS a strategy.
The only strategy the Republicans have had for the last 28 years has been to shift the tax burden away from the wealthy, and on to everyone else, under the guise of "Tax Cuts". A lot of working people fell for it.
Look what that has done to this country.
To chase cheap labor-
Its naive for us to believe otherwise!!!
America must face the fact that we are now
A consumer Nation not a manufacturing Society!!!
Our only hope therfore, is to institute
An across the board
Import duty on all imported products!!!
Other Governments subsidize their countries exports--
To level the playing field we need to charge them
For access to the worlds largest consumer base
Its simple math
We send 550 million a day to other nations for oil
60 billion + to the Chinese per year for consumer
commodities-- Clothes etc.
As long as were sending our cash away and getting disposable goods in return-- we will be cash poor.
Time to make the sellers pay the piper
They can easily afford a 5-8% modest import tax
That will pull us out of the red!!!!
Till we wake up to this reality
We will drown in our own debt!!!