The Credit Crisis and Exit Strategies

Posted by: Gene M. | Jan 19,2008


A lot of people talk about how economic progress or recession comes in waves.  So by this logic Bill Clinton just got lucky and George Bush is unlucky.  Nope, can’t say I agree with that.  Of course it was easier for Clinton to balance the budget when we weren’t embroiled in a major war, but George Bush’s policies have gone forward as if the War in Iraq does not even exist.  What I mean by that is he is employing economic policies as if we are not fighting a war that’s cost over a trillion dollars and heading for two trillion.  

It is pretty telling that we are in the middle of the credit crisis in a time of war.  In a way, I find the two problems part of the same mindset.  Both the housing collapse and the War in the Iraq were run using a similar dynamic: success in the short term without a plan for long-term sustainability.  The policies of this Republican administration have a lot to do with that.  

I’m not going to pull any punches anymore with language like that.  Indeed there are just as many Republicans who feel the same way.  Fiscal conservatives see this administration as a mess.  I feel like the actions of the president – not just the legislation itself but his overall agenda – has commanding affect on the entire structure of America.  We have been living in a climate where present-day success is much more important than long-term growth, or long-term damage.  That Global Warming has become a major issue at the same time is also very telling.  Our short-sightedness in the use of cars and non-renewable energy falls into the same framework.

Part of the reason I like Obama is that he’s not just a break from certain policies, but a break from an overall outlook.  I think this is why so many people are drawn to his candidacy.  It’s a pretty frightening world we live in, so people long for some kind of antidote.  That’s why “hope” is such an enduring message right now, as the domestic economy is freefalling and world affairs are walking a very thin tightrope.  

Whoever comes into elective office next year is going to be a “change,” so that’s good news, but I think we’ve got to do more than just change policy and also change how we think long-term.  It’s like the entire country is not thinking about retirement and is instead going deep into debt for a few quick thrills.  As you’ll read continuously on this blog, that’s exactly the wrong way to go.  You always have to be thinking deep into the future in addition to thinking about the present.  Hopefully, as we enter 2009 and a new administration we can think of the future first and greed second.  

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