Obama an Invisible Force in Economic Debate
Barack Obama is staying away from the global economic summit in Washington, but his presence is felt throughout financial policy debates.
AP
Saturday, November 15, 2008
WASHINGTON -- President-elect Barack Obama is an invisible force as foreign leaders and Congress convene separately in Washington, the economy at center stage.
One sentiment runs below the crosscurrents as a summit of world leaders wrestles with a global crisis this weekend and Congress in the week ahead struggles with rising unemployment and an ailing auto industry: What would Obama do?
Obama is staying away, ensconced in Chicago, unwilling to make any public show of political influence before he is sworn in to office Jan. 20. Indeed, his break with Congress will be complete on Sunday when he officially resigns his Illinois Senate seat.
Obama is being especially cautious about the economic summit, letting President George W. Bush represent the nation. But in the Democratic radio address Saturday, Obama subtly made the point that the summit was only a beginning. "I'm glad President Bush has initiated this process because our global economic crisis requires a coordinated global response," he said.
Obama was more direct with Congress. He urged lawmakers to "pass at least a down-payment on a rescue plan that will create jobs, relieve the squeeze on families, and help get the economy growing again."
"If Congress does not pass an immediate plan that gives the economy the boost it needs, I will make it my first order of business as president," Obama said.
No major economic breakthroughs are expected and, for Obama, the challenges he faces upon becoming president might seem a bit clearer after the foreign leaders and Congress pack up and go home.
"You can imagine the difficulty from the perspective of the participants," said David Lewis, an expert on the presidency at Vanderbilt University. "You don't want to put a lot of effort into doing something when you know that the arrival of a next administration might undo all the work you have done or might undercut an administration that you want to see what they have to offer."
While Obama has laid out an agenda for tackling the economic gloom, the question facing Congress and the international community is whether his prescriptions will be enough.
Obama has proposed a $175 billion economic recovery plan that includes tax cuts, help for states and spending on public works nationwide. But already, economists, labor leaders and some members of Congress are tossing around figures of $300 billion or more. Obama aides are signaling flexibility.
"That was proposed in mid-October," a senior Obama adviser said of the president-elect's plan.
"We'll look at it in mid-January and see where the economy is." The adviser spoke on the condition of anonymity because he was not authorized to discuss internal policy thinking publicly.
Congressional leaders are making it clear that any massive recovery plan will have to wait until next year. Senate Majority Leader Harry Reid, in letter to Republican leader Mitch McConnell on Friday, indicated the Senate's work this coming week will be limited to proposals to increase unemployment benefits and to the more complicated task of rescuing Detroit's automakers with a $25 billion emergency loan.
On the global front, Obama has acknowledged the need for a coordinated international response to the crisis. But some foreign allies have their own detailed plans. British Prime Minister Gordon Brown, for instance, has made a case for beefed up role for the International Monetary Fund and has called for global regulators to be watchdogs over the world's largest financial institutions.
Obama did spell out his economic proposals during the campaign. He and his aides have been in constant communication with leaders in the Democratic-controlled Congress. He also sent former Secretary of State Madeleine Albright, a Democrat, and former Iowa Congressman Jim Leach, a Republican, as his envoys to the economic summit.
"People see Barack Obama as reaching out to the rest of the world, and that's important," Brown said Friday. "We look forward to working with him on the domestic economic policies in our country and in your country to see what common ground we can build up."
Brazilian Finance Minister Guido Manteiga said he expected Obama would move ahead with a bigger aid plan than the Bush administration's.
Bush has more influence over Congress than he does with foreign leaders. His opposition to using the $700 billion Wall Street bailout to help the auto industry could put off, for now, a rescue plan for Detroit.
Many at the summit will have their eyes trained on Jan. 21.
"Given Bush's lame duck status, it's probably not clear to participants what to make of what he brings to the table," said Jared Bernstein, an economist who served as an unofficial adviser to the Obama campaign.
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