Obama Emphasizes Reform, Offers Hope Amid Economic Crisis

Obama Emphasizes Reform, Offers Hope Amid Economic Crisis
By Ben Pershing
Washington Post Staff Writer

Five weeks into an administration already marked by dramatic highs and lows, President Obama sounded a note of hope at a time of crisis tonight, delivering an address to a joint session of Congress heavily focused on the ailing economy and how to fix it.

Offering the prospect of a brighter future after weeks of grim rhetoric, Obama sought to put a human face on complex policy proposals. He linked his banking rescue plan to the ability of a "young family" to "finally buy a home." And he acknowledged populist anger at the prospect of more Wall Street bailouts, vowing to crack down on CEO bonuses and conduct tough oversight of the hundreds of billions of dollars already pledged to address the economic crisis.

Though he began by recognizing that "the impact of this recession is real, and it is everywhere," Obama said he sees light at the end of the tunnel, despite rising unemployment, a cratering stock market, teetering banks and an auto industry gasping for breath.

"But 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: We will rebuild, we will recover, and the United States of America will emerge stronger than before," Obama said.

Though he was optimistic, Obama mostly avoided flights of lofty rhetoric. He offered specific, sometimes wonkish explanations of how credit markets work, how the budget should be reformed and how the country can renew its commitment to renewable energy.

Obama demanded quick action on several fronts. On finance, he asked Congress to move with dispatch to "reform our outdated regulatory system." On health care, he said "reform cannot wait, it must not wait, and it will not wait another year." And on education, Obama said his budget would speed the pace of reform and "expand our commitment to charter schools."

He pledged more honesty and transparency in the budget process, saying that "No longer will we hide" the full cost of the war in Iraq and Afghanistan. Obama vowed to "be vigilant in upholding the values our troops defend" and said of detainees, "I can stand here and say without exception or equivocation that the United States does not torture."

Obama's speech, with all the trappings of a State of the Union address, comes a day after a bipartisan "fiscal responsibility summit" at the White House and two days before the presentation of his first budget.

Obama fleshed out the details of an economic strategy that some critics -- and the markets -- have tarred as too short on specifics to inspire confidence. A week after the president signed a $787 billion economic stimulus package, his administration is moving on separate fronts to shore up the housing market by stemming foreclosures and bolster the banking industry, possibly by purchasing shares in the banking industry.

After days of mostly negative news, Federal Reserve Chairman Ben Bernanke offered a glimmer of optimism today by testifying that 2010 could be a "year of recovery." The stock markets rallied on delivery of that prognosis, and Obama sought tonight to strike a similarly upbeat tone.

"The weight of this crisis will not determine the destiny of this nation. The answers to our problems don't lie beyond our reach," Obama said.

"What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more."

But Obama also distributed some blame for the economic crisis.

"We have lived through an era where too often, short-term gains were prized over long-term prosperity; where we failed to look beyond the next payment, the next quarter, or the next election," he said. "A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future. Regulations were gutted for the sake of a quick profit at the expense of a healthy market. People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway."

Obama hailed the enactment of the stimulus measure, prompting a partisan split in the applause -- Democrats in the chamber clapped loudly while most Republicans remained silent. The president said he had pushed for the bill "not because I believe in bigger government -- I don't. Not because I'm not mindful of the massive debt we've inherited -- I am." Rather, Obama said he pushed for the stimulus, which he said would create 3.5 million jobs, because otherwise the economic situation would be even worse.

Obama added that he had asked Vice President Biden "to lead a tough, unprecedented oversight effort -- because nobody messes with Joe."

And Obama drew a strong reaction from both sides of the aisle by vowing to strictly monitor financial institutions that receive government aid. "I intend to hold these banks fully accountable for the assistance they receive, and this time, they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer," he said. "This time, CEO's won't be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over."

Obama reiterated his desire to cut the federal budget deficit in half by the end of his first term in office, calling for sacrifices by all stakeholders and saying his team has "begun to go line by line through the federal budget in order to eliminate wasteful and ineffective programs." At one point, Obama drew Democratic applause by referencing "the deficit we inherited."

Obama drew a more bipartisan demonstration when he invoked Sen. Edward Kennedy (D-Mass.), who has been undergoing treatment for brain cancer. Supreme Court Justice Ruth Bader Ginsburg, who is battling pancreatic cancer, also got a big round of applause upon entering the chamber, as did Secretary of State Hillary Clinton, who recently returned from an official tour of Asia.

Obama delivered his address from a position of strong political advantage. A Washington Post/ABC News poll released Monday showed that 68 percent of respondents approved of how Obama is handling his job, and 60 percent approved of his handling of the economy.

That survey and others released this week did show an increased partisan split in opinions of Obama, with rising numbers of GOP voters unhappy with his performance and opposed to the economic stimulus bill that nearly every congressional Republican voted against. Despite that divide, Obama is far more popular in the public's eye than the members of Congress he will be addressing tonight, as Capitol Hill Democrats earned a 50 percent approval rating in the Post poll and Hill Republicans stood at 38 percent.

The official GOP response to Obama's address was delivered tonight by Louisiana Gov. Bobby Jindal, widely viewed as a rising star in the party and a potential candidate for president in 2012. Jindal and a handful of his fellow conservative governors have drawn attention in recent days by saying they would refuse to accept some of the state aid contained in the stimulus package.

In his response, Jindal expressed his party's willingness to work with Obama but will denounce the stimulus measure as "irresponsible," according to excerpts released by the Republican National Committee.

"All of us want our economy to recover and our nation to prosper," Jindal said. "So where we agree, Republicans must be the president's strongest partners. And where we disagree, Republicans have a responsibility to be candid and offer better ideas for a path forward."

Jindal said "Washington must lead" in solving the nation's problems. "But the way to lead is not to raise taxes and put more money and power in hands of Washington politicians. The way to lead is by empowering you -- the American people. Because we believe that Americans can do anything."

Jindal - the son of Indian immigrants -- also sought to link his unusual background to that of Obama. "Like the president's father, my parents came to this country from a distant land," he said.

In addition to members of Congress, Cabinet officials, members of the diplomatic corps and Supreme Court justices, Obama spoke tonight before several other notable invitees.

Along with several regular citizens with symbolically resonant backgrounds, First Lady Michelle Obama's guests included Vermont Gov. Jim Douglas, a prominent Republican supporter of the stimulus bill; Ohio Gov. Ted Strickland (D); Earl Devaney, who has been named to lead oversight of the stimulus measure; and Lilly Ledbetter, whose pay discrimination lawsuit inspired the pay equity bill that was named after her and signed into law by Obama in January.

Speaker Nancy Pelosi's (D-Calif.) guests included key labor leaders as well as Chesley Sullenberger and his fellow crew members from US Airways flight 1549, which landed dramatically on the Hudson River last month with no loss of life.

U.S. Attorney General Eric Holder was not present for tonight's speech, following a tradition in which one member of the Cabinet does not attend and goes to a secure location in case a disaster occurs in the Capitol.



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February 24, 2009; 10:35 PM ET | Category: politics
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Couching intent and hinting at reality without committing does no good. It only worsens the situation as it only placates the market furthering the investment of more good money after bad. Simply B of A and the other bloated monetary institutions need to go fail because of their short-sighted greed so that the market can adjust as it jettisons the dead weight to stay afloat.

To the point the issue that I, and many, many that I know, have is that the institutions that are being bailed out with our tax dollars would make any of us jobless, homeless and destitute for a nickel of profit. Further whatever more money the banks receive, if it's not horded again, will be loaned back to us at obscene interest rates (i.e., 31.99% credit card interest). So in order to borrow the money we've paid in taxes that is given the banks we'll pay usuary rates. Worse is that despite what the banks have received and will receive they already say they need more making for an open money pit with no bottom.

That remaining $350B earmarked for banks would equate to $15,000 for 232M taxpayers on the lower rungs of the economic ladder. If they were to get that money they would pay their mortgages, credit cards and other obligations as well as to begin to consume again saving jobs and creating tax revenues for local and state governments. A tax rebate of $15,000 would alleviate suffering and the money would still work its way up to the banks. Unfortunately no-one on the hill has even whispered this idea as it makes sense, stops economic suffering for average Americans and doesn't reward those responsible for the economic implosion that deserve government help the least.

There is logical reason to throw money to the top where it has and will stick if there is no guarantee that it will benefit the recently unemployed, the new working poor and struggling small businesses. Government when telling us that these institutions are "too big to fail" is telling us that we are "too small to succeed".

Posted by: bfjackjernigan | February 24, 2009 7:56 PM

Ben, it should "an auto industry GASPING for breath" not "grasping". I mean, they do seem to be grabbing at the air and not clutching anything, but I'm pretty sure you mean "gasping".




Posted by: Christian_in_NYC | February 24, 2009 8:03 PM

This chimp has no idea what he's doing. Looking cool may impress the ignorant, but it isn't going to improve our economy, neither is spending billions on entitlement programs for those that have no desire to work.

Posted by: cschotta1 | February 24, 2009 8:04 PM

If Obama said "Recovery" it's time for his lapdogs in the press to start peddling the news. No matter whether it has happened, or not.

Posted by: georgegarrett | February 24, 2009 8:05 PM

President Obama's constant presence on television is starting to "creep" me out. After two years of being inundated with Obama gushing, I am tired of his image.
Now, our President wishes to extend words of "hope" after he used words such as catastrophic to shove his Stimulus Bill down Congress throats. I promised myself I would demand politicans to STEP UP and do their jobs, i.e. read bills before voting, discuss bills and compromise. Democrats make me sick, they signed a TRILLION DOLLAR STIMULUS BILL without reading it. How many people sign without reading? Only MORONS. I plan on putting on a movie and skip another PERFORMANCE of President Obama's. Kudos to Senator McCain for outing President Obama and his new helicopter.....

Posted by: virgosiempre | February 24, 2009 8:22 PM

The puppet has been advised to speak upbeat like Reagan. Too little, too late. Now me's trying to save his approval rating because people are tired of the gloom and doom bringing the stock market down. This crisis has been manufactured by government from the beginning. They need to just stop interfering. Every time he (or one of his team) talks, the stocks go down. If they would all take a month vacation without pay, I bet things would perk up.

Posted by: freecitizen1 | February 24, 2009 8:31 PM

As a US Senator, McCain could have stopped the high-priced Marine One helicopter EIGHT YEARS AGO when it was first approved, rather than wait until after losing by a landslide to try and pin it on Obama.
After thirty six years in the Senate, the only thing John McCain has changed is his tune... but now he's changed it again.