As Barack Obama gets set to place his hand on the bible next Tuesday, third and fourth grade classes all across American have already started writing letters to the new leader of the free world.
Why should they be the only ones giving their ideas to the new President?
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I thought I’d get in on the excitement.
Dear Mr. Soon-to-be Leader of the Free World,
I know that a lot of folks are trying to get your ear to tell you how to solve our economic crisis. You know what they say opinions are like …
You get the picture.
Last week in your big economic stimulus speech, you promised less waste and a sunny new climate of transparency. You said, "We'll invest in what works."
That's pretty vague. The real question is: What will work now?
I know you've said that you favor massive infrastructure spending. Anyone who's driven on the parking lot that is the 405 freeway in Los Angeles will tell you that something has to be done!
But building new roads, bridges and electric grids is complicated. It will require the federal government to sign thousands of contracts and cut thousands of checks to contractors who have yet to be approved.
Big ticket government contracting is a haven for political corruption and needs sharp oversight. Look at all the billions that already have gone missing in our attempt to rebuild the Iraqi infrastructure; and the guys overseeing that public works project have M-16's.
One of the quickest and simplest ways to stimulate the economy might be to temporarily cut the Social Security payroll tax. This action, which could be accomplished quickly, would allow work-a-day stiffs to bring home more pay and reduce employment costs for all businesses.
I know that that Social Security is a sacred cow. But everything should be on the table. Even though the Social Security trust fund may be in trouble, adding another half trillion to our national deficit isn't a much better option.
Besides, you need to get more bang for your buck, and infrastructure spending won’t do it.
As I am sure your advisors have told you, retail sales in the U.S. fell more than twice as much as forecast in December because job losses and the choking-off of credit has led Americans to cut back on everything from eating out to car purchases. This 2.7 percent decrease, the sixth consecutive drop, extended the longest string of declines in records going back to 1992.
Mr. Obama, infrastructure spending of the kind you are proposing is needed, but it will do nothing to jump-start this consumer-led recession. On the other hand, putting more money in the pockets of everyday Americans will.
I've got some other great ideas, and I'm available on alternate Tuesdays for lunch. Hey, you could hire me as a ghostwriter. I work cheap.
Good luck with your new job.
Regards,
P.S. Maybe when you become President you can fix the BCS. College football needs a playoff system like everyone else.
John Cohn is a senior partner in the Globe West Financial Group[ based in West Los Angeles. He may be contacted at www.globewestfinancial.com
