Whatever You Say Boss

Our new President gave his first press conference two nights ago. He addressed the nation in the midst of our worst financial crisis since the great depression. He was direct, convincing, passionate and thoughtful. The tenor of the press conference was completely different than his predecessor. Even the constitution of the press corps reflected a change in the Washington political dynamic. Very cool.

But for all the differences, I got the eerie feeling of déjà vu. "We must act quickly". "This won’t be perfect". "We have to do something". The certainty of the conviction for a such a monumental decision ($850 billion is about $200 billion more than the cost of the entire Iraq War thus far) is reminiscent of the last administration, whose confidence and bravado in the face of questionable decision making was disheartening.

The stimulus package is confusing. I used this analogy in a conversation with a colleague.

Imagine this conversation between a father and his college aged son

Son: I am strapped for cash again. I am in a bind and need help immediately.
Father: Why
Son: Books are expensive for all the lab classes I am taking
Father: Books are a known college scam. How much are the books?
Son: Books will be $300.
Father: I can send you a check for …
Son: (interrupting) Make it out for $4,200.
Father: Huh
Son: Well, books are $300. But I need pens and pencils and notebooks and stuff, $50. I need to put a down payment on my study abroad program in the summer, $4,200. I will need money for student dues and lab fees, $50.
Father: And I have to decide now.
Son: Give me the money now or all is lost.
Father: Well everything you outlined is more than $4,200.
Son: Yeah, well I am only going to buy $200 worth of books. And to be honest the total cost of the summer program will be $20,000.

The conversation seems crazy but this is our stimulus package. We are providing less than half of the money needed for “shovel ready” projects. We are being forced to decide now on expenditures that won’t happen for months. We are only providing a small down payment on the necessary long term projects. My example couldn’t account for other challenges such as uncertainty that we are spending enough in the stimulus plan or too much. Plus, there is legitimate dissension that this is the right approach. Tax credit to new home buyers, what about existing home owners? etc. etc.

But in the end I like our President. Plus putting a down payment on green jobs and new schools and trying to create construction jobs and extending entitlement programs are all good things. Let's hope it works. So despite my misgivings, I trust his values and integrity and I am willing to give him the benefit of the doubt. He deserves this chance.