The Year in Review Part II

This past week President Obama gave his State of The Union Speech. Many pundits thought that this was his opportunity to start over again. Here is what took place in the past year.

While legislation was passed prior to Obama taking the reins, it was up to his administration’s team and to that of The Federal Reserve’s Ben Bernanke to lead the country out of the financial mess we had built for ourselves. While hundreds billions of dollars were lent to the banking and insurance sectors to get their shops in order, the term “too big to fail” was coined. The conservatives who voted for the stimulus package under the former President Bush were now heard criticizing the plan because they said that this money would never be paid back and that we were mortgaging our kid’s futures. Just under a year later all the large banks have paid back the money lent to them. While the banks do not lay blameless and played a large role in economic meltdown, what can be said is that one year after Obama became president, the US taxpayer is no longer an investor in big banking. As a footnote it should be said that the banks did no one but themselves a favor during this time charging scathingly high rates for credit cards and being all but totally uncooperative toward the consumers which help build their institutions. The banks in conjunction with the government put themselves in a no lose situation. If they refused to lend the government was bailing them out. If they did lend, it was to only those who could qualify and rates that were uncompetitive to those they borrowers were paying presently. Banks that have become too big to fail should not become too big. But for now, though fragile our financial system seems to have stabilized. Grade B.

Because of the financial situation or perhaps in a show of early bipartisanship and reaching out to the conservatives, President Obama left in place the sitting Bush administration Secretary of Defense, Robert Gates who it was announced this week has just agreed to stay on for another year. The wars in Iraq and Afghanistan have in the past year been largely unchanged. Iraq is winding down. Whether or not things are better there or not, we hear little about what goes on there day to day. Afghanistan is another story. In the late summer a very public debate took place between the sitting general in the region Stanley McChrystal and The President. McChrystal wanted 40,000 troops to complete the still largely undefined mission in Afghanistan. Obama, who has been largely criticized by the conservatives, led by the former Vice President, gave McChrystal 30,000 additional troops and 18 months before saying that he will begin a troop draw down in that region. Will it help? Will it make a difference? History is not on our side and no one really knows at this point. Now we have Yemen as the base for the latest terrorist threat. Grade C+.

Every major decision seems to draw the opposition out against the Obama administration. One recent firestorm was the decision by the Justice Department to try some of the September 11 terrorists in open court in New York City close to where the twin towers fell. This, as opposed to trying them in a military court. The same critics that wanted these trials held behind closed doors are many of the same ones that applauded the former president for prosecuting these terrorist the same way. Yet they call Obama weak on the war on terrorism. But when it comes to the Constitutional rights granted us by our founders, they are all too quick to relinquish those in the name of security. While we are at war with terrorists and terrorism we are not at war with a sovereign nation state. Therefore to grant a military trial recognizes terrorists as a sovereign body; a nation state. It gives them a defacto political status. By trying these people in open court not only re enforces our fair and open system of justice but does not lend legitimacy to the ideals for which they claim to be fighting for. The previous administration left the messy ordeal of trying terrorists to the new administration after holding them in Cuba for nearly seven years. But again our former vice president is quick to react to what his administration and many would say he would not do himself; set a trial venue, determine a method of justice and move forward. Grade: B.

In 2008 our auto industry was in a tailspin. Ford was shedding subsidiaries like Jaguar (to India), Aston Martin (private investors and Kuwait) and had put up Volvo for sale. Ford was in the best shape of the big US automakers. Chrysler was legitimately bankrupt and GM an icon of US business for the past 75 years was bleeding cash an unable to sell cars. It was unprecedented that a population of 300 million people could not sustain three auto companies and the Japanese, our largest competitors were healthy by comparison. As a symbol of how out of touch this industry had become, each company head traveled to Washington D.C. without a plan on their own private aircraft and naively asked for hundreds millions of dollars to right themselves. They were turned down flatly. A year later Ford asked for no government funding , is building cars that people are buying and is committed to being profitable by 2011. GM received loans and has recently committed to paying the money back to get the tax payer out of their board room. This week they say that they may be profitable this year. Chrysler was saved from receivership, largely to save jobs, by the Obama administration that pumped money into the company. Chrysler was later purchased by Fiat, Italy’s largest automaker that will be re entering the US market after being gone from our market for 25 years. In late summer as part of the stimulus package the Obama administration implemented the Cash for Clunkers program which jump started the auto industry if not just temporarily. As Obama enters the second year of his first term, the auto industry is not out of the woods but it is no longer endangered as it was a year ago. What can be said is that we still have an auto industry in this country a year later which was truly a question as we entered 2009. Grade: B+.

What is yet to materialize is a jobs recovery. This week a jobs report came out and it was not particularly encouraging. People are out of work and continue to lose jobs. It is happening across all sectors in all areas of the country. Small business is suffering, big business has continued to lay off thousands of people. This trickles down to the retail sector and no one is spending money. “It’s the economy stupid,” was coined a generation ago by Ronald Reagan and the economy either good or bad is based on whether or not you are employed. Certain inner cities are seeing unemployment in the area of 16%. California is seeing an unemployment rate of over 10%. One thing is certain: Our economy will not recover until our employment numbers improve dramatically. All the good that has been done on a national level will not mean much unless people are working. The Obama administration has implemented the cash for clunkers program and has poured billions of dollars into infrastructure repair and while both are needed and in the case of rebuilding crumbling infrastructure, overdue, these jobs created are as good as the long as the jobs are active. They largely benefit the construction sector. Some trickle down effect is felt with suppliers but not widespread. More, much more needs to be done in 2010 when it comes to creating jobs and incentives to get employers to hire. One such suggestion is a real tax break for employers to hire, companies to purchase capital equipment , and continue with research and development. The Obama administration could also provide incentives to emerging technologies such as the green sciences and industry, nano technology and bio sciences. All of these areas provide a future for our children, our economy and the world. Grade: C-.

A note to republicans. Whether you agree or disagree with the policies, as Americans you should want America to succeed. An argument can certainly be made that we “failed” under the policies of the previous administration. Right after Obama was inaugurated, the republicans started in on the wild spending policies of the democratic president. The eight year run of George W. Bush, A REPUBLICAN, caused a deficit and wild spending of unprecedented proportions. They did this while they had a majority in both houses of Congress. That included pork barrel spending as well. No one party can no lay claim that they are fiscally conservative.

A lot of crazy stuff has been said in the past year. It started days after the president was sworn in. The best was that once Obama was sworn in, he would be recruiting a national police force to implement martial law. Fringe groups called Obama a Kenyan and a secret Muslim. Conservative talk show hosts shed tears. The most remarkable statement made by talk show host Rush Limbaugh in the early days of the Obama presidency was that he wanted Obama to fail. That meant his show would continue to flourish with added ditto heads. Good for him, bad for us.

Before then and since, continued opposition by the conservatives have organized rallies against the administration vowing opposition to Obama’s health care policy and policies for economic recovery even before the details were known. What was so brilliant about these demonstrations were that were being popularized by the right’s media personalities and attended by the very people that the administration was trying to help. The republicans have not been on board with a single Obama initiative even though many of them began in the waning days of the Bush administration. Just saying no makes you look at best stupid and at worst uncaring toward a populous that you represent. Pork project benefiting a few are part of our legislative process. But no one party can claim virtue on this issue. It is an unfortunate part of our political process. But Obama and his people were charged with implementing many of the programs and policies initiated by Bush and the democratic Congress in the waning days of his administration . One has to wonder if the opposing party is more concerned about winning back power than actually helping the country overcome its problems. They should provide legitimate opposition and an alternative proposals which is their job. No substantive proposals regarding any of the primary issues have been proposed during the past year. They simply say no.

We are in a crisis that this country has not seen in generations. Partisan bickering which was business as usual should not be tolerated by the electorate. But this situation is not unique. Democratic bickering happens when the republicans are in power too. It just seems as time goes on the nastiness is taken to a whole new level. This helps no one. Could things be better right now? Yes. Governing is not an exact science. Call it an average performance this past year. But could they have been much much worse? Yes. We were headed down that road just 12 months ago. Whether or not you agree with the measures that were implemented in the past year to halt the recession, at least the problems were met head on and were being addressed. While some, even in his own party are not satisfied with the Obama leadership, a sense of reasonableness should prevail. A lot has been done over the past year. A lot still needs to be done. We have many problems that need to be addressed. But if nothing else we have a chief executive that is engaged in the problems of our time.