President Speaks in Coherent, Complete Sentences

For the first time in 8 years, we heard a President respond to press questions in coherent, complete sentences. Now, that's change we can believe in!

That said, the tone of the press conference was somber. There is no end in sight to the economic downturn with the stock market headed down and unemployment rising.

The answers were long, though generally well thought-out. No funny sound bites. No fodder for SNL or Leno or Letterman. In some ways, almost boring.

As I've said before in this blog (see Sept. 2008 posts), our leaders don't really understand the economic downturn or what will work to reverse the trend. This applies to Pres. Obama.

While I don't pretend to understand it either, I do know we have but 2 choices:

1. do nothing, or
2. try to spend our way out.

Some conservatives prefer a tax cut. But the total value of a tax cut will not be realized in the economy as some portion will go to savings or debt reduction.

Spending, paticularly on infrastructure can have a factor of 1.4 or so in terms of economic benefits. First, the money employes people in infrastructure construction. Then, materials for this construction a purchased (trickling back to suppliers, manufacturers and delivery companies). Then, with ample work, the construction workers will be more likely to buy consumer goods. All in all there is a trickle impact through the economy. Finally, the improved infrastructure has an overall positive impact on commerse, be it do to better roads, more reliable utilities, or ending a load restriction on a bridge that cause truck traffic to detour.

While we clearly have an intellegent leader, our economic future remains uncertain.