Obama’s Blind Spot

Just two weeks into the new administration, I’ve already started to question some of Obama’s recent decisions. Of course, I’m not alone. The media, political pundits and those in the blogosphere are scrutinizing every single move he makes. It’s much too early to become overly alarmed. I, for one, truly hope Obama succeeds, because lord knows we need it to happen.

My brother (a Democrat and liberal leaning American who supported Obama,) sent me the following email this morning about some initial worries he has about our President. He’s also added some specific thoughts on what lawmakers need to do to help stimulate our economy. Thanks, Mike.

Somewhat surprisingly, (because my political beliefs never match his) I agree with everything Mike has to say.… and have added one or two other recommendations as well. How can a liberal and a moderate republican agree on the same means to a political (and economic) end? My theory is that traditional conservative, moderate and liberal views are basically thrown right out the window at a time like this. This is all about stimulating an economy that isn’t lending, spending or doing much of anything. So, no one is (or should be) talking about why “rich” Americans make too much money (maybe because so many aren’t rich now.) And republicans aren’t condemning those without jobs or homes now as being “lazy” or “too dependent on the government” (because hundreds of thousands are now in this same lifeboat.)  Here’s what Mike has to say:

“As much as I respect the man, I believe that Obama has a giant blind spot.  He trusts and believes in people more than evidence shows he should.  This bit him during his candidacy with the Reverend Wright.  Instead of reviewing the evidence and determining that “Yep, I need to disassociate from this guy,” he continued to defend him until Wright threw Obama under a bus.  The same thing happened with Daschle.  Clearly, Tom Daschle is an ethical mess and has been for some time. Yet Obama trusted him because Daschle was a tireless campaigner for him.  So when Daschle is $128K short on his taxes (another clear ethical lapse,) the first thing Obama does is say that he stands behind him.  Instead, he should have looked at the reality of the situation, cut ties, and run quickly away from this selection.

So what does this mean (besides all the jokes about “Does anyone in the new president’s administration pay taxes?”)? It means the following:

•    Obama is giving up the moral high ground because he’s too loyal to people and is willing to change ethical stances based on loyalties.
•    Folks are losing trust in Obama.  If he says “I screwed up” on Daschle, will he say the same next year on the bailout plan?

On that note, I’ve been reviewing the various proposals.  You know I’m a Democrat, but the Republicans are making smart points on the sweeping progressive agenda that the house democrats are inserting into the package that has little to do with shoring up our mess.  So here’s my idea of the “core” of a bailout package, based on what I’ve read.

1. Shore up the states.  This includes funding for Medicare and education and keeps the situation from getting worse.
2. Eliminate the payroll tax for a few years. This puts 6.2% back into the pockets of employees and the same for employers.  A 6.2% raise is more likely to make people spend money than $500 doled out $20 a week.
3. Reduce the mortgage rate to 4% and don’t require a credit score of 10,000 to get this rate.  Make at reachable by those that have “good” credit, not just “amazing” credit. Allow refinancing and second home loans to get this rate.  Allow investment property to get this rate.  This provides an immediate jump to the housing slump.”

I’d also add a key fourth point to Mike’s list.

4) Help small businesses. Small businesses have generated 60 to 80 percent of net new jobs annually over the last decade. Boy, do they/we need some special incentives.  A good start would be to eliminate all capital gains taxes on small businesses (per Obama’s recommendation.) And, I also agree that there is just too much weight put on the small business owner shoulders because of having to pay both employee and employer side of the payroll tax. We need to stop making employers pay for the employee pay roll tax and give the employee a $500 “Making Work Pay” tax credit to support this handed off new burden.

Comments

[Ted]

I think it is unfair and premature to accuse Obama of having a blind spot. Every new president runs into problems with Cabinet appointees. I actually place more of the blame on the team(s) that Obama assigned to vet Daschle and the other cabinet members who are facing similar problems. You would think it would be fairly easy to uncover that a guy of his stature failed to pay a rather large amount of taxes. I guess not.

Before we start casting judgment on our new president, let's remember a few things:

1.) Obama and his administration are faced with daunting challenges that they must solve -- or at least begin solving -- immediately. The problems are complex and fluid, and the repercussions of failing to put in the right fix are sobering. I would say the same thing if John McCain had won the White House.

2.) I am concerned by the notion that people will lose trust in Obama for saying he screwed up. As a communications professional, I applaud the tactic: admit guilt and then tell me how you're going to fix it. It's a textbook communications move. As a citizen, I find it refreshing. I don't expect my president to be perfect and I don't expect everyone to embrace him or his policies; but I expect accountability. Whether his act of contrition is sincere or not, just the idea of a president holding himself accountable in a public setting is a surprising but inspiring moment.

We are at a juncture in our history where we need leaders who actually lead. We need selfless leaders who will act in the best interest of the people, not themselves or their party. And we need leaders who aren't afraid to fail and refuse to resort to cover-ups and finger pointing as excuses for managing their responsibilities.

I'm not sure Obama is that leader - it's just to early in the game - but he's showing signs that he is, and I think it behooves us all to give him a shot to manage us through and out of this crisis. Because if he fails, we all lose.

[ed]

Ted,

I applaud his tactic of telling the world he screwed up, too. I think it was honest and came across well.

But, you can't not blame him for what happened last week (cabinet members). Everything falls under his watch. And, oh, he did admit that he screwed up. That's all one needs to know.

[Steve]

I agree with everything you and Mike propose as being more economically helpful, Ed--especially the part about the need to help small businesses. They are the main economic engine for job creation and opportunity, but have been completely ignored by other sides of the political aisle.

However, I would go further in terms of specifying a leadership and communications problem: the enormous disconnect between what Obama the candidate promised--and therefore was elected on--and what Obama the President is doing. As a candidate, Obama said he was going to change "business as usual" and the government by--and all too often, for--Washington insiders. However, as President, Obama is selecting only entrenched politicians, often from within the Beltway, for his team.

Fundamentally then, his actions do not connect with his stated mission or vision of government. That poses an enormous risk for him of losing credibility and trust. To loudly proclaim one thing while doing another is the worst of politics as usual.

If Obama felt that he needed veteran pols to get the job done--certainly a defensible position, though not one I personally agree with--he should have said that during his campaign. But to promise change and a fresh start while staffing up with political insiders and lobbyists comes perilously close to bait-and-switch.

The communications and leadership lesson is: tell people what you actually intend to do, so that your actions and words reinforce each other, not conflict.