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December 3, 2008 at 06:47:15
by Stephen Fox Page 1 of 5 page(s) |
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(After some background on this position and those who have held it, we opened the discussion to friends and colleagues from all over the US to express their new ideas for Secretary Richardson. We similarly open this discussion to our readers to send us their insights for our next issue; as long as Governor Richardson is in New Mexico, we know he will be most attentive to these new ideas, which may become the lifeblood of his tenure as Secretary of Commerce. We know he will do a superb job, and are happy to share in the wealth of good ideas!)
Only one former US Commerce Secretary has ever been later elected to the Presidency: Herbert Hoover, who served under both Coolidge and Harding. Most Commerce Secretaries have been obscure to begin with, served, then have sadly been consigned to the Dust Bin of History, despite their hard work and personal integrity, going back to the first one in 1913, William Cox Redfield, appointed by Woodrow Wilson, who served 6 years. [Noteworthy that these 6 U.S. Secretaries of State moved up to become the President: Jefferson, Madison, Monroe, John Quincy Adams, Van Buren, and Buchanan].
Roosevelt's close personal advisor Harry Hopkins became FDR's Commerce Secretary, after serving as one of the architects of the New Deal and the relief programs of the Works Progress Administration (WPA), which he built into the largest employer in the country. During World War II he was Roosevelt's chief diplomatic advisor and troubleshooter, a key policy maker in the $50 billion Lend Lease program. Coming a few years later was Henry Agard Wallace, the thirty-third Vice President of the United States (1941""45), the eleventh Secretary of Agriculture (1933""40), and the tenth Secretary of Commerce (1945""46). In the 1948 presidential election, Wallace was the nominee of the Progressive Party.
Truman's second Commerce Secretary was perhaps the most well connected of Commerce Secretaries: William Averell Harriman, an American Democratic Party politician, businessman and diplomat and the son of railroad baron E. H. Harriman. He served as Secretary of Commerce under President Harry S. Truman and later as Governor of New York. He was a candidate for the Democratic Presidential Nomination in 1952, and again in 1956 when he was endorsed by
President Truman but lost to Adlai Stevenson. Harriman served FDR as special envoy to Europe and as the U.S. Ambassador to the Soviet Union and U.S. Ambassador to Britain, and he later served in the Kennedy and Johnson Administrations. Among his wives were Marie Norton Whitney, who left her husband Cornelius Vanderbilt Whitney to marry him, and Pamela Harriman, former wife of Winston Churchill's son Randolph.
[One historical note linking Harriman as well as Prescott Bush, W's Grandfather, to German National Socialist financiers: while Averell Harriman served as Senior Partner of Brown Brothers Harriman & Co., Harriman Bank was the main Wall Street connection for German companies and the varied U.S. financial interests of Fritz Thyssen, an early financial backer of Hitler's bloody regime until 1938, but who in 1939 had fled Germany and was denouncing Hitler. Business for profit with Germany was not illegal when Hitler declared war on the US. Six days after the attack on Pearl Harbor, Roosevelt signed the Trading With the Enemy Act after it had been made public that U.S. companies were commercing with the declared enemy of the United States. On October 20, 1942, the U.S. government ordered the seizure of German banking operations in New York.]
Elliot Lee Richardson was an American lawyer and politician and a member of the cabinet of Presidents Richard Nixon, and later in the cabinet of Gerald Ford as Secretary of Commerce. During the Watergate Scandal, he refused an order from Nixon to fire special prosecutor Archibald Cox. He is the only person in American history to have served in four Cabinet-level positions within the government: Secretary of Health, Education, and Welfare from 1970 to 1973, Secretary of Defense from January to May 1973, Attorney General from May 24 to October 1973, and Secretary of Commerce from 1976 to 1977.
Malcolm Baldridge, Reagan's Commerce Secretary, worked during his boyhood as a ranch hand and earned awards as a roper on the rodeo circuit. He was a Professional Rodeo Man of the Year in 1980 and was installed in the National Cowboy Hall of Fame in Oklahoma City in 1999. He once appeared on the television game show To Tell the Truth pretending to be rodeo tie-down roping champion Dean Oliver. Malcolm Baldrige died July 25, 1987 in a rodeo accident in California at the age of 64. His service as Secretary of Commerce was one of the longest in history, and he was probably the most colorful Secretary of Commerce.
When Gov. Bill Richardson becomes America's next Secretary of Commerce, he will direct 40,000 employees and a group of fascinating sub organizations. The most important of these functions, because of the deteriorating US Economy is that he will be integrally involved as Obama works towards solutions with his economic team. Both Treasury Secretary Timothy Geithner and Larry Summers as Director of the National Economic Council, will also be integral. Richardson will excel in promoting American business and international trade; he will supervise the International Trade Administration, ensuring that American businesses have access to international markets and that counterfeit foreign goods don't corrupt U.S. markets.
The new commerce secretary will counsel on trade agreements with Colombia, Panama and South Korea. Although Bush negotiated the agreements, the Democratic Congress has delayed ratifying them because of pressures from labor. Obama opposes the Colombia pact because he wants Columbia to crack down and prevent unionists being murdered. Obama wants the South Korea agreement renegotiated to benefit U.S. automakers; both situations will challenge Richardson's negotiating abilities skills and his history as a free trade advocate. Richardson was one of the original NAFTA proponents.
Commerce has an $8 billion annual budget; it gathers economic and demographic data as in the Census, develops telecommunications and technology policy, conducts ocean research, issues patents and trademarks, forecasts the weather, and manages fisheries and wildlife sanctuaries. Census determines how many House seats for each state, and is used for redistricting school boards to congressional districts, so it is a sensitive position, often subject to the demands and wrath of Congressmen.
Michele Kraus at Huffington Post has written the most insightful assessment of Richardson at Commerce:
"All the media pundits seem to be missing the boat on the brilliance of the selection of Governor Bill Richardson as the next Secretary of Commerce. Many have been just too eager to pigeonhole him in the role of foreign affairs and stir the controversy missing the real beef of this Governor's legacy in the State of New Mexico. This man is innovative. We need someone willing to think out the box and attract the best talent to implement and manage. That is Big Bill from the far off land of New Mexico. More than $2 Billion in revenues and jobs are now coming into New Mexico from Hollywood; the chip giant Intel in a partnership with the State built one of the world's fastest super computers outside of Albuquerque; venture capital firms have been created to invest in start-up ventures; and partnerships have been formed with titans of private industry. He's got a team of the best and brightest, and even raided Princeton for his young Energy advisor who is spearheading innovations for the Western states on climate crisis. If that were not enough, last spring Richardson sealed one of the largest private and public partnerships with Sir Richard Branson and the State of New Mexico to build the next generation space station. The net is that there are more jobs, and more money and more programs for advanced education - all benefiting the people and the economy of New Mexico for the long term as we all weather the blight of this financial roller coaster. So next time you wonder what Obama was thinking, muse over the facts and applaud him for his shrewd insight in appointing Richardson to help reinvent commerce for the US."
Note: The US Commerce Secretary: the Department states its mission to be "to foster, promote, and develop the foreign and domestic commerce."- Until 1913 there was one Secretary of Commerce and Labor, uniting this department with the Department of Labor, which is now headed by a separate Secretary of Labor.
Ideas for the new Secretary of Commerce:
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| 49 comments |
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Governor Bill Richardson Accepts Offer to Serve on Obama Cab
SANTA FE, NM- New Mexico Governor Bill Richardson today announced he has accepted President-elect Barack Obama’s offer to serve in his Cabinet as United States Secretary of Commerce, and issued the following statement: “I am proud to accept President-elect Obama’s offer to join the incoming administration and to be part of his efforts to restore and renew the promise of America at home and abroad,” said Governor Richardson. “I am honored by President-elect Obama’s confidence in me to lead this important agency at this critical period in our nation’s history. “This is by no means an easy decision and brings with it a mix of emotions. I am proud of what we have accomplished in New Mexico during the past six years and we’re not done yet. I will be here to deliver the State of the State address when the Legislature convenes on January 20. I will present an aggressive, responsible and balanced budget plan as well as a full slate of important initiatives. I will not resign as Governor until I am confirmed by the United States Senate, and until then I will continue to work tirelessly on behalf of all New Mexicans. “I have said many times that being Governor of this great state is the best job I have ever had. I have been honored by the trust and support of our citizens, and together we have helped build a New Mexico that is stronger and better prepared to face the challenges and embrace the opportunities of this new century. “I now ask the people of New Mexico to offer that same trust and support to Lt. Governor Diane Denish, who will take the reins when I leave. She is a strong and insightful leader and has been a great partner as we have grown our economy, worked to build and expand development and production of renewable energy, created jobs and improved our education system. I am confident she will build on the momentum we have started and continue to work in the best interests of our people. “For the First Lady and me, New Mexico will always be home. There are no words to express our love for the people, the culture, and the beautiful land of this great state. We will carry with us the many friendships we have made as well as the spirit and kindness of the citizens.” by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 11:18:07 AM  (0+)
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Excellent!
I have a great deal of admiration for Governor Bill Richardson and I believe Barack Obama has made a wise choice in this appointment. Many thanks to Stephen Fox for this fine piece of journalism. by Tommy News (18 articles, 0 quicklinks, 5 diaries, 34 comments [4 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 12:14:22 PM (0+)
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Reply: THANKS. The ideas on how to restore economy: that's #1
in my humble opinion, and there have been some keen, and, I would daresay, BRILLIANT points made by folks from all over the US, most of whom I met or conversed with from the 630 different Obama groups of which I was a member. I really would like to see this dialogue grow into positive suggestions and an Open Door for Ideas for Richardson to act upon. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 12:34:50 PM (0+)
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This is quite a stunning compendium of new ideas!
Governor Richardson must take the time to read and process these keen insights as Commerce Secretary, a job that will mean more in time, especially with the effort he will put into it. by Eliot Gould (16 articles, 0 quicklinks, 28 diaries, 200 comments [3 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 12:57:17 PM (0+)
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My idea was to solicit new ideas and to then compile them.
I can only take credit for that much: the rest comes from the armchair pundits, Monday morning economists, and that unique stance that comes from being a truly struggling consumer; it is going to take a lot of good ideas to get the US out of the Economic Destruction wrought by 8 years of Bush/Cheney/Neocons, especially in the international sector where our image is somewhere down in the gutter on the way to the septic tank. I want to see Richardson keep many channels open for such ongoing dialogue! He was that kind of Governor, and I am sure he will be that kind of Secretary of Commerce! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 1:14:07 PM (0+)
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Richardson is a geat choice
ANOTHER PRAYER ANSWERED!! Words can not express what I feel now, Every pray I prayed doing this year seems to be getting answered Gov. Richardson is a great choice, I don't know him personally, but for what is said about him he is a smart heard working guy who cares about this country. and if he ran for President after Obama has finished his eight years, "YES I SAID EIGHT YEARS," I would vote for him in a heart beat. Gov. Richardson this is to you, stay strong and stay in Pray you have a great job, I'm proud of you. by Gloretha Gray (0 articles, 0 quicklinks, 0 diaries, 18 comments) on Wednesday, Dec 3, 2008 at 1:42:43 PM (0+)
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thanks Gloretha: you should contact him directly!
and say what you wrote here to him through his website at New Mexico Governor: click on EMAIL THE GOVERNOR, and you can let him know personally, which I encourage you to do. I doubt that more than a few on his staff know about this article at OpEdNews.com, so that would help all of the writers who submitted ideas, who of course include you! by Eliot Gould (16 articles, 0 quicklinks, 28 diaries, 200 comments [3 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 1:49:42 PM (0+)
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well said
This article is well said and very edcational . This artical reminds us of the heard work it takes to run this country, and the choice that we make must be a wise choice. The choice that are being made now by President elect Obama must be wise choices, and he is doing a great job, I'm happy!!!! by Gloretha Gray (0 articles, 0 quicklinks, 0 diaries, 18 comments) on Wednesday, Dec 3, 2008 at 1:50:54 PM (0+)
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New Mexico Dem Chair Colon on Richardson leaving NM
"New Mexico's loss is the nation's gain. New Mexico has moved forward under Governor Richardson's leadership. Bill Richardson will be an outstanding Commerce Secretary and his experience will be crucial in turning our economy around as he works with world leaders to build a stronger global economy. Bill Richardson served with distinction as Energy Secretary and U.S. Ambassador to the United Nations in addition to serving New Mexicans both in Congress and as Governor. He will be missed by countless New Mexicans who have come to appreciate his vision for our State and his tireless efforts on our behalf. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 2:05:30 PM (0+)
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Comment
The current ledger problems of our financial institutions has been caused by the decline in housing values. The paper and reinsurance on their books has lost its value because of mortgage backed securities are next to worthless. There is so much of this stuff out there that 700 billion is only a fig-leaf, an attempt to finesse the game. When financial experts see thru this gambit, uncertainty will again re-enter and dominate the market. The key is to restore some value to this junk. The "bubble" was a demand side inflation, and its deflation is a supply side problem. Only an idiot would pay full price for a new house when they can snap up a foreclosue bargain. Until foreclosures are curtailed, this new supply of cheap housing will continue to prevent traditional home supplies from finding a bottom and eventually beginning to recover. When the mortgage crisis is addressed, then the "toxic" paper on the books of many financial institutions will begin to regain value. There isn't enuf money in the world to make good all these losses, but by intervening in the housing crisis we can re-inflate the value of mortgage backed securities, relieve the neccesity of reinsurers to pay off, and directly improve the balance sheet of lenders to the point where losses do not threaten collapse. by Richard Hirschhorn (25 articles, 0 quicklinks, 1 diaries, 48 comments [5 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 2:07:52 PM (0+)
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Richard: great point, a little foreboding. However,
I encourage you to make the point directly to Richardson through his Governor of New Mexico 'email the governor' function on his website, and be sure to ask for a response. What a god awful mess Obama is left to clean up. Do you think the Bailout should stop? If so, how? why should it continue? Any ideas? by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 2:29:33 PM (0+)
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Reply: I mean the Wall Street Bailout, not the Homeowners'
Foreclosure Bailout, which hasn't begun and is only in talking stages.... by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 2:31:11 PM (0+)
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Richardson perfect match for this Great Job!
Finally I believe Richardson better than anyone could help in job creation, market regulation and expansion abroad better control/protection including Gatt). by Lydia Kopere Patterson (6 articles, 0 quicklinks, 1 diaries, 154 comments) on Wednesday, Dec 3, 2008 at 5:58:44 PM (0+)
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Reply: VERY ASTUTE, your idea of redefinition of the job!
"The only difference is that one will be dealing more with politics (re-establishing 'lost' allied relationships) and the other will be fixing businesses and top economic issues both domestically and internationally." I think this is a very keen observation, and potentially Richardson's impact on the US Economy, and by extension, the economy of many of our allies and not-so-allied nations, will be much greater. I am hearing a lot of serious and well thought out objections to NAFTA and to CAFTA, and the effects of the outsourcing on the U.S. Economy have been much like the medical effects of a major hemorrhaging, no doubt about it. 65 Nobel Laureates endorsed Obama: what would they say in a kind of brain trust? Obviously, unless I have too low opinion of Congress, very few in Congress seem to be able to grasp the problems enough to be able to come up with anything more coherent than going along with Paulson's Bailout (which completely stinks to me, founding fathers and all...) I think Obama should schedule a mega Economic Domestic Summit Meeting with the top folks in the USA on this issue. Meanwhile, I will still keep collecting good ideas, and get them directly to Governor Richardson over the next 45 days, while he is still Governor. What more can I do? by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 7:20:46 PM (0+)
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Reply: Change is happening through Your "New Ideas" Initiative!
You're already doing far more than you think. I'm sure Bill Richardson will be delighted to get your feedback on his future assignment. I always love this guy. I feel the world will finally get to see the real America: an innovating Country with good and intelligent politicians -not just politicians-with great values. Thank you Stephen for the EXCELLENT work! by Lydia Kopere Patterson (6 articles, 0 quicklinks, 1 diaries, 154 comments) on Thursday, Dec 4, 2008 at 6:18:35 PM (0+)
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Mea Culpa for NAFTA?
where's is his mea culpa for the disaster known as NAFTA - the ruling elite drawn and driven " free trade" program? For which 87% of the people were against before its passage... some "democrat"? by Kent Welton (71 articles, 0 quicklinks, 0 diaries, 63 comments [5 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 7:38:30 PM (0+)
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Reply: Richardson had only the best expectations for NAFTA
This comment has been flaggedReason: (Inappropriate Content) Inappropriate Content
I am not Governor Richardson's gopher or pr guy, but I do know that with his extensive roots in Mexico where he grew up as a child of a Mexican mother and an American blue blood Boston Brahmin Banker father, he wanted it to benefit both the US and Mexico. [Richardson's grandfather was a naturalist working for the New York City Museum of Natural History, by the way, not a well known fact. That was William Blaine Richardson I.] That might have all changed in the past 15 years. Why don't you ask him directly by sending an email to his EMAIL THE GOVERNOR function at his office online for NEW MEXICO GOVERNOR? I encourage you to do that, rather than presume invisibly that the world is owed some MEA CULPA for NAFTA! You bring up many valid points, personally which I share in general. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 10:14:51 PM (0+)
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Excellent Compilation of Ideas
Stephen, this is a very comprehensive and thoughtful article. I believe that Governor Bill Richardson will be an excellent Secretary of Commerce. He seems to have the same bright yet easy going demeanor that is so attractive in our new President and I'm sure that he will welcome innovation. We'll need something creative to work our way out of the current credit freeze so that small business can put people back to work. One of the most important tasks will be to restore consumer confidence by encouraging job growth in small business. Nevermind large corporations, small business is the largest employer and generator of wealth in the country. Some of the hard hit areas could perhaps be engaged in repairing some of the nation's ailing infrastructure, similar to the WPA projects of old that gave employment to the most needy. Universal health care and technological innovation would be better than any bailout for the auto industry! What's happened to American ingenuity in the auto sector? All if the interesting suggestions made by your contributors are going to need creative implementation. President Obama's new Commerce Department with Governor Richardson at the helm is a very encouraging start. by Annabel Hoyt (0 articles, 0 quicklinks, 0 diaries, 21 comments [1 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 8:18:04 PM (0+)
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Reply: response to Annabel from Stanford for Obama!
Thanks so much. Your kind words and insights mean a lot to me. (I was wait listed at Stanford and never got to do much more than visit the campus, see? I finished 4 years at Occidental College, where Obama went a few years later for just two then transferred to Harvard!) Anyway, this is a very complex set of ideas and questions about how to repair the US Economy. I think it will take some fundamental readjustments, like the fact that unbridled corporate power is terribly destructive, ultimately, and the 8 years of Neocon manipulations of processes and votes and policies: all of that has to be subtly shifted into new realms and tactics and outlooks. Thanks again! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 10:21:52 PM (0+)
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Time for US to take the lead again
Great article, Stephen! You've collected many great ideas on how Richardson and Obama can restore our economy. Now that we FINALLY have a leader who is intelligent, we can come out from under this veil of anti-intellectualism that we've been hiding behind for the past 8 years. Under Obama's and Richardson's leadership, this is the perfect time for the US to lead the way in creating vehicles that run on alternative fuels. Other countries have already begun developing such vehicles (see the article on Truthout.com: http://www.truthout.org/120308EA) Israel, Denmark and Australia are working on this. Let's roll up our sleeves and use the immense creativity with which this country is blessed to make vehicles that will put the citizens of our country to work and put an end to the annihilation of our planet. Our automakers need to get it through their thick, gold-encrusted skulls that cars CAN run on fuels other than gasoline. And they should not receive a single penny from our government until they make this their mandate. by Paula Ehler (1 articles, 0 quicklinks, 0 diaries, 3 comments) on Wednesday, Dec 3, 2008 at 8:25:52 PM (0+)
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Reply: Israel, Denmark, and Australia would be good company for USA
Foreign oil could go out the window. Only dummies and Neocons got trapped into that mindless idiocy, and then of course became very comfortable as the billions rolled in. Meanwhile, the rest of the world keeps moving forward. Intelligence: yes, that is the key. Richardson is a great choice, and Commerce is no step down for him. (See his press release above, please) I want to see Ocean tides being harnessed to produce electricity, as a Canadian firm, I believe called MINERVA, is doing off the coast of Oregon. I want to see American ingenuity in Stem Cells overhaul the corrupt and dealy Big Pharma industries, run rings around them and their sorry posteriors, like Advanced Cell Technology is doing, way ahead of the curve. Face it: our nation really has been "dumbed down," and Obama's Cabinet is charged with reversing the dumbing down which has almost reached fatal proportions, as of late. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 10:28:38 PM (0+)
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Thanks, Stephen. You are right on with this assessment!
Stephen, I do think this is such a wise choice. Richardson has worked on crises from the outside/diplomatic areas as well as within the U.S. His expertise in so many vital areas will serve our new President and our country well! Mary the Prez by Marytheprez (0 articles, 0 quicklinks, 0 diaries, 5 comments) on Wednesday, Dec 3, 2008 at 9:00:18 PM (0+)
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Reply: You're right, and what he's achieved in New Mexico is great!
Maybe not astonishing, because he was a Governor, not a miracle worker, but good solid progress, with some lightning strokes of genius. I went to the press conference at which it was announced that the world's largest manufaturer of solar arrays, a German company named SCHOTT, and the CEO there said that they had many choices on where to locate, but decided on New Mexico largely because of the hard work, intelligence, and personalities of the Governor and all of the brass in the Department of Economic Development. Like Mr. Colon above said: NEW MEXICO'S LOSS WILL BE THE NATION'S GAIN! It is not going to be a walk in the park, and the situation right now would rapidly become a black eye for any politician, so I have trepidations about what will happen in the near and distant future, but all in all, I am glad about this key appointment. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 10:34:09 PM (0+)
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The best thing Riichardson can do now
is to downplay the role of the federal government and support the states. The states on their part should isolate federal fuctions, and remove them from the state wholesale to the greatest degree possible. Although I am a proponent of strong government, it is evident that the federal government now plays a toxic role in the affairs of Americans. The most deleterious factor affecting the economy is the currency regime, which permits misallocation of capital on a massive scale. States should as much as possible remove federal reserve notes from use in day to day activities. Local governments should introduce commodity money to promote commerce. The federal government cannot facilitate the conduct of commerce unless it resumes its constitutional duty to coin money, and closes down the Federal Reserve System. by Peter Duveen (13 articles, 0 quicklinks, 15 diaries, 197 comments [30 recommended, 0 rejected]) on Wednesday, Dec 3, 2008 at 10:03:31 PM (0+)
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Reply: That's a terrifying thought; you may be right, but could you
please take the time to extend the scenario a bit and formulate what your plan might lead to? Is it corrective enough? Are there still so many Neocons around that they would form an impregnable barrier to such radical solutions? I mean we can look back at Roosevelt's NRA and the New Deal and the WPA and conclude rapidly that they were successful programs. I doubt however that they were easy to put together. A depression starting in 1929 took 12 years to over turn, only because a World War threatened, and it wasn't till 1953 I believe that the Dow Jones Industrial Average ever came back to the level it was 24 years earlier! No quick fixes here, but Government Economic Policies are not rocket science and since we are the Government, ultimately, it is our ideas that must be communicated to key people like Bill Richardson, in a clear and open channel, like this one at OpEdNews! May I also encourage you to email your ideas directly to Gov. Richardson through the email function in his online Governor's Office? Just click on EMAIL THE GOVERNOR, please. I truly don't know enough to reply any more intelligently to your thesis than I have already attempted to do so. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Wednesday, Dec 3, 2008 at 10:42:30 PM (0+)
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Secretary Richardson Another marvelous choice for change
Governor Richardson is a brilliant choice for Secretary of Commerce. We come from every ethnic religious and political group, represent every I applaud and support the appointment Governor Richardson as Secretary of Commerce, and have the utmost confidence he will successfully help guide our nation to a more prosperous and secure future, and will be instrumental in preventing this kind of economic disaster from occuring again in the future. by Frank Spiga (0 articles, 0 quicklinks, 0 diaries, 2 comments) on Wednesday, Dec 3, 2008 at 11:39:06 PM (0+)
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Reply: VERY INSIGHTFUL BUNCH OF IDEAS, THIS ONE.
I am amazed at the quality of thought that has gone into so many of these comments! I am certain that in the near future if he hasn't already, perhaps on the jet to Mexico City to visit his mother (he is enroute there as I write this), he will read these comments. I intend to keep "harvesting" such ideas, as they are urgently needed! Great news for the Nation! At a press conference this morning with NM's Gov. and Lt. Gov., after the obligatory talk of smooth transition, Richardson said he would be Governor till mid February after Senate Confirmation, and will deliver his State of the State address Jan. 20; I asked Richardson about the long and somewhat boring procession of Commerce Secretaries (Herbert Hoover, Henry Wallace, Averill Harriman, Maurice Stans, Elliott Richardson (the only person appointed to 4 Cabinet posts; Richardson is at 3 now), Malcolm Baldridge, Reagan's Rodeo Rider/Commerce Secretary who died at a California Rodeo) I posited that he would be the most international of them all. He thanked me for the compliment. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Thursday, Dec 4, 2008 at 1:00:50 PM (0+)
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Restoring the Economy
All the talk of green this and green that is great. We need that. But it is not going to happen for 10-20 years. Our economy needs help tomorrow. Essential to restoring the economy is simply putting more money into the hands of the public. This can be done by lowering gas prices from $3.50 a gallon to at least a $1.75 a gallon. High fuel costs mean less money for consumers to pay for goods and services. I think Richardson and Obama are smart enough to realize that lowering fuel costs is the big piece of the economic puzzle and will not start up more big expensive government programs that put us deeper into the hole and really don't benefit anyone except those on congress's contributor listings.. Consumers have quit spending. If our economy is to get started again fuel prices have to come down. If fuel prices came down I would spend only $20 for a fill up and not $40. If everyone saved that at least that much money every week the effect on the economy would be enormous. There are only two ways to reduce fuel prices. Increase supply or decrease demand. Economics 101. Spectulators who drove the price of oil through the roof and will bail out of the market if there is less demand and more supply or even the threat of more supply. Obama has done two smart things: postponing increasing taxes, backing off on increasing capital gains taxes, and not putting additional taxes on oil companies. Increasing taxes are like putting brakes on the economy. We do not need that right now. by Mad Jayhawk (3 articles, 0 quicklinks, 2 diaries, 652 comments [56 recommended, 3 rejected]) on Thursday, Dec 4, 2008 at 6:08:23 PM (0+)
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Reply: "Green" could happen tomorrow because it is cheaper....
I agree with much of what you say, as premises, but you forget the power of the Federal Government, when it wants to do something, like Roosevelt's WPA and NRA, whose director Harry Hopkins later became Commerce Commissioner. That was the biggest single employer in the US at the time. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Thursday, Dec 4, 2008 at 6:40:09 PM (0+)
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Fixing US Economy should be through change of mindsets
For long time, we've been thinking too much of short term solutions rather than long term. As we know about scarcity and satisfying our needs/wants (basic economic concepts). Our mentalities have always been over consumption of foreign oil, credit cards (even when we can't afford SUV, we still must "keep up with the Joneses"), over eating with all the health issues that come with it on one side and, greed on the other side. I can go on and on. In short, it's not just Corporate, banks that need changing but we the people. We must learn new habits: walk more, public transportation - providing Government builds new infrastructure, new roads....). Sure, this will take time, we must be patient, something we must learn. Yes, PATIENCE. That's a virtue. Quick fix, it's usually dirty fix. These are the consequences we're facing today. Everything must be fast: fast food, fast car, fast "you name it" Let's stop think, design then execute. A house on a week foundation, can't stand. We must build thinking Long term. That implies sacrifices at the beginning. Now the question remains, are we willing to sacrifice today for a better Tomorrow. What do we prefer short term solutions vs long term? by Lydia Kopere Patterson (6 articles, 0 quicklinks, 1 diaries, 154 comments) on Thursday, Dec 4, 2008 at 6:54:22 PM (0+)
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Reply: Lydia: You should apply for a job with Obama administration!
Perhaps in Commerce or at State Department. You are a superb theorist with keen insights, and a fresh way of looking at things. Of course, it remains to be seen how bad this economic crisis really is, and what catastrophic will or won't happen. That might preclude any major shifts in consciousness toward the green way of thinking, if millions are living in tent cities, and their foreclosed houses sit empty, while Wall Street Financiers are laughing all the way to the bank, in which they just bought a majority interest. Crazy times we are in, but we have to accept the brilliance, trustability, and stability of Obama and at least this one Cabinet pick, for Secretary of Commerce. Others I like, of course, but this one job is going to turn into a very important one, in Bill Richardson's hands! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Thursday, Dec 4, 2008 at 8:18:35 PM (0+)
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Auto Bailout
Stephen, Here's a link to Marty Chenard's excellent market commentary about the auto bailout proposal: " An absolute new level of financial insanity, lack of common sense, and the robbery of the American people in broad daylight" click here I think that this nails it. by Annabel Hoyt (0 articles, 0 quicklinks, 0 diaries, 21 comments [1 recommended, 0 rejected]) on Thursday, Dec 4, 2008 at 9:00:07 PM (0+)
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Reply: I agree & felt same about Wall St. Bailout: Hoover & FDR
would never dream up such gibberish and nonsense. Only a criminal bunch of kleptocrats could cook this crap up. It is really disgusting; will Obama bring them to their senses? A bankrupt nation fighting two wars? Karl Marx and Hegel couldn't have imagined this absurd situation. or did they after all in their prediction of the doom of the old forms of capitalism? by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Friday, Dec 5, 2008 at 12:02:41 AM (0+)
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Reply: Auto Bailout
Here is a rough and incomplete set of calculations, and a couple of honest questions for anyone who thinks it is ok to lose the automotive industry,that it isnt a big deal, and that they wont be affected anyway. $39 billion/ to worst case $125 billion to restore the Auto industry to long term viability versus !.5 million people unemployed collecting an average of $350 a week for one year $27.3 billion 1.5 million people on food stamps at $150 a month for 1 year $0.27 billion 500,000 foreclosures @ an estimated value of $150,000 each $75 billion 1.5 million people earning an average of $50,000 per year paying a conservative federal income tax after all exemptions and deductions of 7.5% $5.6 billion Revenue lost to the health insurance industry from the loss of premiums paid by ex employers for 750,000 families. Average cost at $10,500 per year per family $78.75 billion This very incomplete list adds up to a total estimate of $186.8 billion lost in just one year if the US automotive sector is allowed to go under. As i said a very incomplete list, you can add lost state taxes, lost sales taxes, lost gas taxes, medicaid or other health expenses for the additional uninsured etc. And you can assume that the problem will last much longer than the one year in my mini cost evaluation. So considering the trade off of a possible $125 billion to save the industry versus the $186.8 billion from my very incomplete and one year limited estimate for not saving the industry, which option do you really think is better for not only those directly affected, but also for the already stressed financial and mortgage sector, the already cash strapped states and municipalities, and the government that will have to revisit the next banking crisis after another massive wave of loan and mortgage foreclosures hits the nation ? Second question, putting aside all questions of economic and fiscal philosophy, just exactly what do think you will do with all those people, in an economy already pillaged by decades of so called free market trickle down policies that is has already sustained more than 1.5 million jobs this year alone? That is an honest question, to which I have heard only cries of dismay about wasting tax dollars and no substantive plans for those who would be affected., or any acknowledgement of the costs to eveyone should these jobs be allowed to dissapear. I realize President Obama will change the course of this nation, and get our economy turned in the right direction, but even he certainly should not have to labor through another massive failure on the part of congress and the current administration to at least maintain some vestiges of a vialble and diverse economy, for him to move forward with. Anxious to hear your response as I may have literally dozens of co workers, neighbors and family who may need to know the answer soon. Frank Spiga by Frank Spiga (0 articles, 0 quicklinks, 0 diaries, 2 comments) on Friday, Dec 5, 2008 at 1:28:27 AM (0+)
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Reply: Don't have answers, except that you must publish this widely
Try the big guys like the Washington Post, the New York Times, papers outside of Michigan, Chicago Tribune, L.A. Times: on the editorial pages; the editorial page editors are all listed in the common reference book, EDITOR AND PUBLISHER, and if you take the time and energy to call ahead to explain your idea, it might pay off big time.... YOUR ARGUMENTS ARE COMPELLING AND PERSUASIVE, FRANK! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Friday, Dec 5, 2008 at 11:57:53 AM (0+)
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Exchanges Trading Financial Derivatives
Honorable Senator Tom Harkin has proposed legislation that would place all over-the-counter derivatives, including credit-default swaps, onto futures contract exchanges regulated by the CFTC. The existing exchanges are now taking steps to underwrite financial derivatives. The problem: Placing standardized derivatives onto any of today's futures exchanges merely sets the stage for the next collapse. Fortunately, there are more than two ways to create financial exchanges. An innovative new structure for a contracts exchange on which standardized futures contracts can be traded without margin accounts, position limits and daily price change limits can be downloaded from www.LICDevelopmentLLC.com. Oakley E. (Lee) Van Slyke, FCAS, ASA, MAAA The following persons have agreed to be listed as signers of this letter. (Affiliations are for identification only.) Paul Braithwaite, President of the Casualty Actuarial Society 2005-2006 Wayne H. Fisher, Executive Director, Enterprise Risk Management Institute International Alice H. Gannon, Former Chief Actuary & SVP, USAA Property and Casualty Insurance Co. Brian Whitworth, MBA University of Chicago; FinancialPatents.com Philip E. Heckman, Ph.D., ACAS, MAAA James E. Rech, CFA, FRM, MBA, President, Amerisk Consulting LLC Gerald J. Sullivan, The Sullivan Group Russell T. John, President of Swiss Re Underwriters, Inc. 2000-2006 Clayton Anderson, California small business owner by Oakley Van Slyke (0 articles, 0 quicklinks, 0 diaries, 1 comments) on Friday, Dec 5, 2008 at 3:52:27 PM (0+)
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Reply: Oakley: this is interesting, but I don't understand entirely
what this actually means. Could you expand a bit to clarify it for us non-MBA's, non-CPA's, and non-Economics majors, please? by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Friday, Dec 5, 2008 at 4:30:25 PM (0+)
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Richardson: THE GREAT GREEN COMMERCE SECRETARY?
If he is serious about this, the National Institute of Standards and Technology in Boulder Colorado, a branch of the Department of Commerce. This building and its related research projects for wind energy included windmills and generators about 4 miles from their office. They were noteworthy in that the downdrafts from the mountains produced lots of extra energy, and the solar panels on top of the building produced reserves of energy, as well as "GREEN LINES," offices in which everything is running off the solar panels, thus keeping the energy costs down. In other words, cost saving measures forced by a severe downturn in the national economy may REQUIRE a very rapid shift into "GREEN COMMERCE." This could precipitate a major change in not ten or 20 years as earlier posited, but in as little as two or three years. by Eliot Gould (16 articles, 0 quicklinks, 28 diaries, 200 comments [3 recommended, 0 rejected]) on Friday, Dec 5, 2008 at 6:23:12 PM (0+)
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Good point, Mr. Gould.
In the same neighborhood, also in Boulder, is the extraordinary National Center for Atmospheric Research. In addition to being an extraordinary piece of futuristic architechture, they are doing important research, very important research.... by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Friday, Dec 5, 2008 at 6:30:02 PM (0+)
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Shared Economic Growth
How about a proposal that does the following? How does it do it? by Matt Lykken (1 articles, 0 quicklinks, 1 diaries, 1 comments) on Friday, Dec 5, 2008 at 11:40:05 PM (0+)
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Reply: Great insight from Harvard Law graduate!
Thanks so much, for posting this comment. When I set out to "harvest" some new ideas about restoring the US Economy, I really had no idea how many fine thinkers would contribute to this dialogue. I am now trying to figure out a way of compiling them all in a coherent and logical compendium to send to some of the Obama Economic Team. Only at OpEdNews.com could such a discussion take place, I am sure! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Saturday, Dec 6, 2008 at 9:43:07 AM (0+)
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First thing you do when you are in a hole is stop digging.
I believe this is the greatest economic crisis this country has faced in a hundred years. Therefore, I am suggesting the following to prevent us from entering a Depression. 1. Freeze all foreclosures and mortgage rates for the next five years. 2. The gov't should beginning buying up foreclosed houses and renting/selling them back as public housing. This will stabalize the housing market. 3. The banks have lied to Congress. They are not lending out the bailout money. The bailout should be frozen and the banks in trouble nationalized with the bailout money used to extend credit and not restrict it. The banks have betrayed the public trust and can always be re-privatized when the economy stabilizes (see it's a wonderful life). 4 The Gov't should create a TVA in the southwest and midwest to provide cheap energy and jobs. The Southwest Solar Energy Authority should buy/lease land so land prices can be stabilized and solar farms can be built (like Hoover Damn) so cheap energy can be provided. A MidWest Wind Energy Authority can be authorized so Wind Farms can be built in Dakota, etc and the grid upgraded so cheap energy can be distributed. A new water pipeline from the North should be funded so the West can have its water needs met for the next century. A Northeast Tidal Authority will be created to provide tidal power. Millions of jobs that can't be outsourced will be created. 5. All jobs will be unionized and the Taft-Hartley act will be repealed. 6.The retirement age will be set at 62 with full benefit. 7.The minimum wage will be pegged automatically to inflation and set at 10/hour. 8.The auto industry will be nationalized with a public/union corporate structure created with the mandate to produce electric/flex fuel cars. 9.All new housing will require solar thermal heating as an addition to current heatiing technology with tax credits for upgrades for older housing. All government buildings will convert to solar thermal heating. 10. Military vehicles will convert to hybrid/flex fuel and a military refinery will be built in a hurricane/earthquake free zone. 11. The tariff on sugar/ethanol fuel will be removed and the subsidy for ethanol will be phased out with all other agriculture subsidies. 12. The single payer health plan in the house will be passed with a targeted tobacco/polluter/alcohol tax designed to fund it. 13. All income taxes on incomes under 50,000 will be elimnated, Rates on incomes over one million will be raised proportionally. This is the start of an economic stimulus plan designed to halt the deflationary spiral we have begun. It must be augmented by block grants to mass transit and individual states to prevent a dramatic contraction of the domestic economy. Otherwise, the the devastating consequence of a deflationary chain reaction will spread. by dr haris (0 articles, 0 quicklinks, 0 diaries, 1 comments) on Wednesday, Dec 10, 2008 at 10:54:32 AM (0+)
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Dr. Harris, Brilliant! Thanks so much!
I will print this whole thing out tomorrow and take it to Gov. Richardson's office in the Capitol. What is your doctorate in, pray tell? by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Thursday, Dec 11, 2008 at 9:00:28 PM (0+)
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Stimulate the Economy Without Increasing the Deficit
* Millions of Americans are in massive debt because, since the 80's, government policies have shifted costs for public services, such as Health Care and Education, to consumers & away from states & the fed; * Writing off a large fraction of consumer debt would teach banks and financial institutions not to boost profits irresponsibly by extending vast amounts of credit to people and institutions that are credit risks, and * Writing off a large fraction of consumer debt would help the U.S. government to make a profit on its banking sector investment, rather than expanding the deficit. Therefore, Congress should: by Amy Donahue (0 articles, 0 quicklinks, 0 diaries, 3 comments) on Friday, Dec 12, 2008 at 7:59:41 PM (0+)
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Reply: Amy, your insights are astute. Am not sure about writing off
Consumer Debt, and how good a reception that will get in Congress or any where else. The overwhelming fact is that if the US Gov't can bailout and absolve the silk suits on Wall Street, and then do nothing to help the auto industry or the foreclosures (which are in fact two entirely different issues), then it is up to the citizenry to heighten the clamor about this inequity. I will bring your ideas to the attention of Gov. Richardson as well as our 13,500 readers of the New Mexico Sun News. I am amazed at the quality and intelligence of the responses, including yours, of course. by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Sunday, Dec 14, 2008 at 10:35:04 AM (0+)
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Reply: Thanks, Stephen
When I've pitched these thoughts in the past, the arguments raised against them have consistently been ideological, not economic. It doesn't sit well with a lot of Americans to forgive other people's debts (interestingly, "debt" and "sin" were synonyms in early Christianity, and the people who make these arguments tend consistently to identify as Christian). While pointing out the inequity of the government's responses so far has its own merits, I'd encourage you, and others who may be queasy about forgiving consumer debt, to try to think strictly of what's good for the economy and for people who are struggling to care for their families this holiday season. What other proposal would help so many people in need, and do it so affordably and immediately? Further, what would be the moral hazard? Compared to all the people who tried to plan responsibly and were blindsided, a relatively small number of consumers will have been just plainly irresponsible. But this proposal, unlike current mechanisms, will teach banks that they (too) lose when they make irresponsible decisions. As a result, irresponsible consumers, unlike responsible ones, will find it harder to get credit down the road if debt is forgiven along the lines suggested. by Amy Donahue (0 articles, 0 quicklinks, 0 diaries, 3 comments) on Monday, Dec 15, 2008 at 10:14:25 AM (0+)
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I have loaned lots of $ to artists, and never seen it again!
Amy: I have to speak as an entrepreneur who has paid back every penny I ever borrowed. Put yourself in other's shoes: if you were to have loaned monies out, how would you feel about the Government ordering that those debts be forgiven? I doubt you would like it, at all. So the argument against such a plan is EXPERIENTIAL in this case, rathen than IDEOLOGICAL. I often use such logical processes to determine if some policy idea makes sense. I learned that much and much more from Dr. Sripati Chandrasekhar, Professor, and former Minister of Health in India, and he in turn learned that much and more from Gandhi in 1940 when he was a kind of student, before he came to the USA to get his Ph. D. in Economics. I have observed, in the context of your saying banks will learn certain lessons, that they already know that one through and through. In terms of individual consumer loans, they are as tight and as scrutinizing as ever. I don't think any of the banks I have dealings with have ever pumped up consumer loans as a way of appearing to be more "profitable." The big guys, like Goldman Sachs and Lehman Brothers, Wall Street in short: that is an entirely different story. Did you notice the Bloomsbury story about the Federal Reserve declining to give Bloomsbury any details on who they just loaned $2 Trillion to, and what was the collateral? Did something happen I don't know about? I was aware of $850 billion in bailout for Wall Street Silksuits, but what is the Federal Reserve and $2 Trillion all about? Detroit/Big 3 is only asking for loans of $15 billion. Amy, I am of course still open to further discussion on your ideas in your comment, and I certainly hope you can help on the little legislative project I wrote about earlier! Getting Aspartame off the market is really where my heart is, and I hope to write an article about the impact of the corporate manipulated FDA on our worsening International Commerce situations. For the entire list of commenters, I prepared a five page document condensing your ideas into five jam packed single spaced pages and emailed it to my friend in the Governor's office, who by now has printed it out and put it into his nightly pile of reading. So I thank each and every one of you for this very successful experiment in participatory democracy; let's hope some of the ideas take root and take shape and grow into real solutions for Americans; God knows we need such solutions urgently! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Monday, Dec 15, 2008 at 6:02:43 PM (0+)
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POST SCRIPT:
I noticed, by using the relatively new OpEdNew statistics gathering functions, that this was the 2nd most emailed article this year so far at OpEdNews, and that is wonderful. I cordially and gratefully thank whichever fellow Economics wonks out there who have been doing this, to spread the word all over the world. Hopefully, we will see a new era when the individual with the good idea can make a real difference! I particularly thank Rob Kall, Founder of OpEdNews, and urge those who use OpEdNews frequently to consider this: if you don't contribute according to your means to keep this amazing site with its brilliant dialogue going, yet want to take all of the advantages in doing so, hey: PLEASE DO THIS: CHANGE THIS HYPOCRITICAL ATTITUDE AND SEND ROB SOME BUCKS. I AM GOING TO DO SO SHORTLY, AS A CLEAR PATH TO THE BEST NEW YEAR POSSIBLE! by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Monday, Dec 15, 2008 at 6:08:30 PM (0+)
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The Ultimate Stimulus Package by Reda St.Cyr
[this was sent privately to me, and although some of the ideas are difficult to envision enacting, it is still quite interesting and excellent, so I am posting it as a comment to spark further dialogue. It really should be an article at OpEdNews, if the author will go into a bit more detail with this sketch of a plan and even counter some of the inevitable objections in advance, preemptively] by Stephen Fox (96 articles, 3 quicklinks, 11 diaries, 802 comments [33 recommended, 1 rejected]) on Tuesday, Dec 16, 2008 at 10:24:56 AM (0+)
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