As President Obama approaches the 100-day mark of his presidency, hedelivered a He alluded to the Sermon on the Mount to describe the stronger, morefair economy he envisions: “There is a parable at the end of the Sermonon the Mount that tells the story of two men,” he said. “The firstbuilt his house on a pile of sand, and it was destroyed as soon as thestorm hit. But the second is known as the wise man, for when ‘…therain descended, and the floods came, and the winds blew, and beat uponthat house…it fell not: for it was founded upon a rock.’ We cannotrebuild this economy on the same pile of sand. We must build our houseupon a rock.”
I think the speech is important for what it reveals about Obama’sunderstanding of the task ahead–building a new economy out of theashes of our failed one.
But real and grounded concerns about the administration’s bank bailoutplan remain. As Nobel prize-winning economist Joseph Stiglitz wroterecently in a New York Times While Obama’s speech lays out some strong principles for a newfoundation, the administration’s financial team remains unwilling tounderstand that we’re not just going through a financial crisis or apanic, but the failure of a whole model of banking. We are living amidthe blowback of an overgrown financial sector that did more harm thangood.
As The Nation‘s Greider has If this realization begins to sink in through the failure of the currentplan–and Obama’s commitment to pragmatism and experimentationsuggests he might be willing to move to Plan B with sufficient pressurefrom mobilized citizens and thinkers who envision a different model thanthe Summers/Geithner approach–then we’re on the road to laying thefoundation, the rock, for a new economy.
But creating that new economy will require what Obama himself might call”tough choices”–and some different “pillars” from the ones heoutlined today. We need affordable health care; pensions above socialsecurity; and sustained public investment in areas vital to high wagesin a global economy–affordable colleges, world-class public schools,and a 21st century infrastructure. We need to restructure–not justre-regulate–the financial sector so that banking is once again a” The mother of all fights lies ahead–beyond the first 100 days–aslobbies mobilize to halt the reforms needed to rebuild and reconstruct anew economy of shared prosperity. The drug and insurance companies, the Despite the flaws of the bank bailout, President Obama has signaled thatwe can work toward a new economy. But it will require a massivemobilization of citizens. We’ve had thirty years of themarkets-know-best-and-are-self-correcting, government get out of theway, let CEOs rule, maximize executive profits–dogma. Thecatastrophic results are in. Now begins the fight to rebuild a balancedeconomy in which government is on the side of the people, corporationsare held accountable, and workers are empowered.
Long-term challenges should be seized, not ignored–lest we remain onshifting sands.