Strategy First

Now that the euphoria of the election is begining to subside, and the stock market is retreating again, it is time to consider the best way forward. With the weak economy, the new President-elect and the Congress are talking about another stimulus package. The automakers already have their hand out for another package on top of the 24 Billion they got when Congress passed the 700 Billion dollar fund just before the election. Congress will likely not wait for the new President to take office. They will do something during the lame duck session; however, if they don't have a better plan that is part of an overall strategy, they would simply be putting us further in the hole without having a positive impact on the economy. As a short term measure, they could simply extend unemployment benefits to tide over those who are actively looking for employment.

Giving the automakers another handout is a lot more questionable. GM is already suspending product development work on new vehicles for lack of cash, and GM alone has lost over 50 Billion dollars over the last three years. For one thing, they might not survive even with the handout. For another, both GM and Chryler are either owned by or closely aligned with the private equity group Cerberus. Investing in the banking system and regulated entities to keep capital flowing is one thing, but investing in companies owned by private equity groups who represent wealthy investors and play by their own rules is quite another. As a taxpayer, I am not excited about using federal funds to prop up investments that are owned by or feed the interests of a private equity firm. Knowing that Nancy Pelosi is meeting with the automaker executives today is a scary thought. People should also know that Cerberus is a very politically connected firm with people like former Secretary Treasury Snow and Vice-President Quayle among their high profile executives. They know how to work the system to their benefit which may not align with the rest of our national priorities.

What needs to happen right now is for the President-elect to define his strategic vision for the country. Many of these problems like energy, infrastructure, and the health of the economy are interrelated and also impact national security. The old Congressional approach of simply throwing some money at the problem of the day to those who speak loudest will not work anymore. We need Mr. Obama's leadership to set the priorities of our investments in the future in a more strategic way. Only by investing in accordance with a strategic vision will we be able to fix the problems and wisely use our limited resources. He has already outlined some priorities during the campaign: Energy, Health Care, Infrastructure Investment, and his tax plan for the middle class. He needs to be clear about where he wants to focus first so that Congress doesn't squander the available investment pool on pet projects or lobbied interests. This is the problem we are attempting to fix with the new Administration. So, lets not let Congress be stupid before the inauguration. We voted for change, so don't let them go back to doing business as usual. If we do that, then we will have lost our chance to put America First.