Dollars and Sense

At the risk of piling on, I offer my own assessment of what economic policy would look like in an Obama administration. Senator Obama's father had a PhD in economics from Harvard, so he must be of the genealogy, Homo Economicus. Anyone who posits that he will adhere to traditional "liberal" economic theory is clearly unaware of several points.

First, he is the only candidate running on middle-class tax cuts. While it is true that he has mentioned raising the social security payroll tax (past the $97,500 threshold), it's not a hallmark of his social security bail out, while the tax-cuts are most definitely the focus of a multi-faceted economic package.

Second, Senator Obama seeks a technocratic solution to simplify tax filing for Americans by digitizing tax forms and the reforming the archaic tax code. While saving money on preparation, this will economize the cost to the Federal Government of processing tax returns and decrease tax avoidance, thereby increasing revenue without changing tax rates.

Third, his economic growth formula, investing in higher education through tuition breaks and localized job-training while driving research on innovation and energy independence to grow new industry, is the exact mix of primer to return this country to prosperity. Rolling back the final tax bracket, from 35 to 39% (4%!!)
Lastly, it's important to know who's advising the Senator on economic issues. His roster includes a brilliant young U of Chicago Economics Professor  Austan Goolsbee, an innovative free-marketer whose focus on new economy is a refreshing break from old supply-siders and their retread ideas.

His current proposal (reported as $210b for new jobs) is to be spent over 10 years, which by math is $21b a year of spending. The Federal Budget in FY '07 was $2.7 Trillion dollars. So, before everyone gets their panties in a knot about spending, admit that it's less than 1% of spending, on an annual basis. And infrastructure matters. Two of the most progressive and solutions-oriented executives, Michael Bloomberg and Arnold The economy doesn't grow unless public infrastructure improves because the global economy needs wide lanes to run. And investment in education and infrastructure is the best way to grow the economy and give people the tools to succeed on their own. 


At the risk of piling on, I offer my own assessment of what economic policy would look like in an Obama administration. Senator Obama's father had a PhD in economics from Harvard, so he must be of the genealogy, Homo Economicus. Anyone who posits that he will adhere to traditional "liberal" economic theory is clearly unaware of several points.

First, he is the only candidate running on middle-class tax cuts. While it is true that he has mentioned raising the social security payroll tax (past the $97,500 threshold), it's not a hallmark of his social security bail out, while the tax-cuts are most definitely the focus of a multi-faceted economic package.

Second, Senator Obama seeks a technocratic solution to simplify tax filing for Americans by digitizing tax forms and the reforming the archaic tax code. While saving money on preparation, this will economize the cost to the Federal Government of processing tax returns and decrease tax avoidance, thereby increasing revenue without changing tax rates.

Third, his economic growth formula, investing in higher education through tuition breaks and localized job-training while driving research on innovation and energy independence to grow new industry, is the exact mix of primer to return this country to prosperity. Rolling back the final tax bracket, from 35 to 39% (4%!!). Any conservatives who oppose spending on some "principled" basis have clearly been asleep for 7 years. The Federal Budget has grown by $1 Trillion since 2001. I offer another proposal: Instead of reflexively opposing Federal spending (except of course of tax-subsidies to countries that ship jobs overseas), perhaps supply-siders should consider competent fiscal management and pay-as-you go rules. The worst problem since 2001 has been incompetence, inefficiency, no-bid contracts and cronyism. If you want to see where your dollars are going, see www.usaspending.gov. You can watch your tax dollars melt away and see an example of the open, transparent government Senator Obama would run. This website was created as a result of a bill co-sponsored by Senators Obama and Coburn (R-OK). 

Lastly, it's important to know who's advising the Senator on economic issues. His roster includes a brilliant young U of Chicago Economics Professor  Austan Goolsbee, an innovative free-marketer whose focus on new economy is a refreshing break from old supply-siders and their retread ideas.

His current proposal (reported as $210b for new jobs) is to be spent over 10 years, which by math is $21b a year of spending. The Federal Budget in FY '07 was $2.7 Trillion dollars. So, before everyone gets their panties in a knot about spending, admit that it's less than 1% of spending, on an annual basis. And infrastructure matters. Two of the most successful, pragmatic and progressive executives, Arnold Scharzenegger and Michael Bloomberg, have explicitly called for investment in Federal infrastructure. For the United States to lead in the new economy, we've got to invest in our transportation and human capital. Investment in education and infrastructure is the most efficient way to continue American economic leadership and give people the tools to succeed on their own. 

At every opportunity in his career, Senator Obama has crafted positive, pragmatic and successful solutions to problems he's faced. Still, it is important that voters examine his record fairly and thoroughly. I believe they will like what they find.