Obama Outlines Economic Plan

In his weekly radio address on Saturday, President-Elect Barack Obama outlined his plan to salvage what remains of the American economy. While his team of advisers have to flesh out the details, he was specific enough in the few minutes he spoke to reassure those who understand economics that he won't pursue foolish spending projects. Instead, he's backing smart investments.

He said, “First, we will launch a massive effort to make public buildings more energy-efficient.” He went on to say that the government has the biggest fuel bill of any entity on the planet. Since many of these buildings were put up decades even a couple of centuries ago, it is almost certain that they can be improved. New heating and cooling systems, along with better insulation, will cost up front, but in the long run, they will more than pay for themselves. And installing all of that will mean good blue collar jobs.

He added, “Second, we will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s.” Rebuilding roads and bridges, doing maintenance and upgrading facilities usually doesn't happen because there is no funding for the plans that are sitting on the shelf. Now, the funds will arrive. He also said that any state that doesn't use its federal money quickly for such projects will lose it.

His third point was a focus on fixing school buildings, as distinct from other public buildings. Mr. Obama vowed, “We will repair broken schools, make them energy-efficient, and put new computers in our classrooms. Because to help our children compete in a 21st century economy, we need to send them to 21st century schools." The computer bill will be huge, insuring that chip makers and software writers have work to do for years to come.

A fourth area of focus is on the “information superhighway.” He noted, “It is unacceptable that the United States ranks 15th in the world in broadband adoption.” The country that invented the Internet lags terribly in this area. This is an opportunity to leapfrog to the state-of-the-art and push the existing technology along.

Related to that is his desire to connect not just schools to the Internet but also hospitals. “That is why the economic recovery plan I'm proposing will help modernize our health care system - and that wont just save jobs, it will save lives. We will make sure that every doctors office and hospital in this country is using cutting edge technology and electronic medical records so that we can cut red tape, prevent medical mistakes, and help save billions of dollars each year.” That probably is too optimistic, but this is the man who ran on a platform of hope and change.

What makes this such a promising laundry list is that it leaves behind valuable assets that will ensure further economic growth once the projects themselves are completed. Rather than giving each family $600 to spend at WalMart, he is suggesting giving Americans the job of fixing up the country – the difference between spending and investing is critical.

© Copyright 2008 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Fedora Linux.

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