Obama's Debut

by John M. Curtis
(310) 204-8700

Copyright February 25, 2009
All Rights Reserved.                    

            Delivering what amounted to his first State of the Union speech, President Barack Obama served notice that there’s a new sheriff in town.  Showing the poise, control and confidence that won him the presidency, Barack sounded more optimistic, patriotic themes, reminding his worst critics that he understands the essence of the American spirit.  Reminiscent of the late President Ronald Reagan, Obama touched upon enduring American values of ingenuity, entrepreneurship, rugged pragmatism and diehard spirit that transformed the New World into the earth’s most prosperous civilization.  While the evening was designed to give reassurance about the nation’s economic woes, Barack wooed the most skeptical Republicans with dazzling oratory not seen since President John F. Kennedy.  He put the GOP on notice that his disgruntled foes face political fallout for opposing his plans.

            Since their Nov. 4 drubbing, Republicans haven’t figured out how to resuscitate the Party.  Speaking for the GOP following Barack’s speech, 37-year-old Louisiana Gov. Bobby Jindal resorted to tired old Reagan talking points, blaming government for the nation’s current financial mess.  Jindal, who said he intends to refuse bailout funds, had no problem supporting former President George W. Bush extravagant requests to fund the Iraq and Afghanistan wars yet has great reservations about Obama’s $787 billion bailout plan designed to help states avoid layoffs and possible bankruptcy.  He got mixed reviews, giving the GOP response to Barack’s speech.  Jindal fingers Barack as a big government tax-and-spend liberal, preferring the old GOP formula of business and personal tax cuts.  While Barack has been in office barely 4 weeks, Jindal takes no responsibility for the current mess.

            Despite addressing a joint session of Congress, Barack spoke directly to the American people, serving notice that he’s working on behalf of the voters who sent him to Washington.  “While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this,” said Barack.  “We will rebuild, we will recover and the United States of America will emerge stronger than before,” bringing down the house with applause from both sides of the aisle.  Showing more optimism, Obama heeded calls to tone down the doom-and-gloom and focus on the positive.  He found plenty of common ground with the GOP, promising to cut the deficit in half and go after the terrorists responsible for Sept. 11.  Barack reminded Congress and American people that he wasn’t the one responsible for the current deficits.

            After eight years of Bush, the GOP is in no place to criticize Obama’s economic plan or offer old bromides for a quick fix.  “The way to lead is to not raise taxes and put more money and power in the hands of Washington politicians,” said Jindal, blaming Democrats for today’s economic misery.  Jindal doesn’t quite get that years of runaway defense spending, high oil and gas prices and an unregulated stock market brought the country to the economic precipice.  Jindal’s rejoinder reminded voters more than ever that they made the right decision on Election Day.  He mirrored the rudderless state the GOP finds itself after losing significant seats in the House and Senate.  Voters were treated to Obama’s masterful presentation, serving notice that the White House is now occupied by a dynamic president, more than willing to communicate directly to the American people.

            Barack’s speech tried to make the connection between today’s economic problems and rising health care costs.  While there’s no doubt health care costs need to be brought under control, Barack did little to explain the economic collapse of 2008.  He didn’t explain why America’s most respected institutions collapsed at the same time.    Barack mentioned nothing about the 1999 repeal of Glass-Steagall, the 1933 Congressional act that formed the Federal Deposit Insurance Corporation, preventing bank holding companies from trading securities.  Last year’s financial meltdown directly stemmed from massive losses in securities known as derivatives by depository institutions.  Barack mentioned nothing about the pernicious effect of unregulated hedge funds that routinely bet against the market in what’s called “short selling,” making money when stocks go down.

            Barack’s speech sent a shot across the bow to Republicans, warning them to either go along or face the wrath of voters.  Jindal reminded voters why the GOP ran out of steam in the last election:  Old Reagan talking points don’t address today’s economic reality requiring effective government intervention.  While mentioning failures in the regulatory system, Barack failed to inform the people about how the end of Glass-Steagall caused banks’ wild speculation in high risk securities known as “derivatives.”  Nor did Barack mention anything about regulating hedge funds that contribute to Wall Street’s unpredictable roller coaster ride.  Fixing health care or public education won’t prevent banks from gambling with depositors’ money and causing the next financial crisis.  Republicans and Democrats must join forces to fix the current system before the same thing happens again.

John M. Curtis writes politically neutral commentary analysing spin in national and global news.  He's editor of OnlineColumnist.com and author of Dodgingi> The Bullet and Operation Charisma.

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