Saturday, December 06, 2008

The Obama Economic Stimulus -- Will it Take Us Where We Need to Go?

Dear President-elect Obama,
The economic stimulus package you laid out today in your weekly radio and internet address is a great starting point -- very much needed as the downward spiral of the economy takes away the breath of even the most level-headed observer.

Your plan to save or create 2.5 million jobs by investing in energy efficiency, infrastructure, and schools are all things we called for in the agenda we laid out in the Fall issue of YES!, and are all favored by a large majority of Americans.

Let's look a bit more closely at your specific plans:
"First, we will launch a massive effort to make public buildings more energy-efficient. Our government now pays the highest energy bill in the world. We need to change that. We need to upgrade our federal buildings by replacing old heating systems and installing efficient light bulbs. That won’t just save you, the American taxpayer, billions of dollars each year. It will put people back to work."


This is an excellent place to start. Increasing the efficiency of buildings reduces greenhouse gas pollution, and cuts dependence on both imported energy. It sets a higher standard for building owners to emulate, and jump starts what could be one of the best new sources of stable, family-wage employment -- refurbishing the built environment for energy efficiency. And it is an investment that will quickly begin saving us tax dollars. 
"Second, we will create millions of jobs by making the single largest new investment in our national infrastructure since the creation of the federal highway system in the 1950s. We’ll invest your precious tax dollars in new and smarter ways, and we’ll set a simple rule – use it or lose it. If a state doesn’t act quickly to invest in roads and bridges in their communities, they’ll lose the money."
Investment in national infrastructure is desperately needed after years of neglect by leaders hostile to government projects. But we are entering a new era, when everything we build must be assessed for its climate impacts. The potential catastrophe of run-away climate meltdown could make the economic melt down look minor by comparison. Infrastructure investments must be used to build to climate friendly projects -- bridges that accommodate mass transit, bike lanes, and pedestrians, for example. And roads that encourage compact communities rather than expensive and wasteful sprawl.
"Third, my economic recovery plan will launch the most sweeping effort to modernize and upgrade school buildings that this country has ever seen. We will repair broken schools, make them energy-efficient, and put new computers in our classrooms. Because to help our children compete in a 21st century economy, we need to send them to 21st century schools."
Great plan. Our kids should not be going to run-down schools that kill the spirit and signal to them that we don't care. Instead, schools should be filled with beauty and light -- qualities that can improve learning and cut energy costs. More than any other group, our young people have a stake in a sustainable future, and we can rebuild schools that give them hope. While we're at it, we can address another of your top priorities, health, by connecting the schools with local farmers, so kids get healthy, fresh, local meals.
"As we renew our schools and highways, we’ll also renew our information superhighway. It is unacceptable that the United States ranks 15th in the world in broadband adoption. Here, in the country that invented the internet, every child should have the chance to get online, and they’ll get that chance when I’m President – because that’s how we’ll strengthen America’s competitiveness in the world."
Agreed. Kids must have access to the extraordinary range of information available on the internet and to the tools needed to create their own on-line spaces, where they can express their own ideas and talents, not just be passive consumers of information and entertainment. We need to find the right balance, though, between kids spending time in the electronic world of the internet, and interacting with real people, real spaces, and real plants, animals, soil, water, and sunshine. In other words, the virtual world is no substitute for the real world.
"... the economic recovery plan I’m proposing will help modernize our health care system – and that won’t just save jobs, it will save lives. We will make sure that every doctor’s office and hospital in this country is using cutting edge technology and electronic medical records so that we can cut red tape, prevent medical mistakes, and help save billions of dollars each year."
Fine, but let's not get distracted from the real crisis: access to health care.

Will you, as promised, create an affordable system of health insurance that will cover everyone? The analysis we did for the YES! issue, Health Care for All, shows that keeping the private insurance industry as the dominant player in the system, makes universal coverage difficult, if not impossible. Canada and every other wealthy country deliver health care security to everyone by eliminating the expense, bureaucracy, and dominant role of the profit motive from the health care payment system. Medical services are still provided by a combination of private, public, and non-profit medical facilities.

These systems work -- few Canadians or Europeans would trade their system for the expense, ineffectiveness, and insecurity of the U.S. system. And little wonder; they live longer and healthier lives than Americans, and can take access to medical care for granted. In spite of the absence of these proposals from most public debate, Canadian-style, single-payer health care is favored by an overwhelming majority of Americans, who now live in fear of losing health coverage due to a job loss or some other change in circumstances.

One other element of the economic plan that Americans favor -- please, Mister President-Elect, extend unemployment benefits for those losing their jobs and unable to find a new one in a downsizing economy. Doing so will immediately put money into the pocket of hard-pressed Americans, who will immediately spend it on providing necessities for their families -- a great investment in our children and our future, and an immediate stimulus to the real economy of Main Street. (If you have any doubt about the pain ordinary Americans are feeling, check out these stories on the Huffington Post.)

In summary, your plan is a great starting point. But the economic collapse (and pending environmental collapse) shows the need for much deeper restructuring. Some ideas about what that might mean are here.

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4 Comments:

At 8:11 PM, Blogger BeyondGreen said...

We have to look at "the big picture." The days of tunnel vision are over. Our nation better wake up and smell the coffee. With all our bail outs along with the 168 billion economic stimulus package, that btw did nothing for our economy it is hard to understand why our government can't see the need to bail us out of our dependence on foreign oil. I am appalled at news stories of green technology losing hope of being furthered because of lower gas prices. How long does anyone really think this decline will last? OPEC holds the key and we are at their mercy. They just cut 2 million barrels in production a day and vow to cut more if prices don't rise again. Instead of spending billions upon billions on bailouts, why don't we instead invest in renewable energy. We have GUARANTEED returns if we do this. I just read a fascinating book by Jeff Wilson called The Manhattan Project of 2009 Energy Independence NOW .This book Is the big picture.

 
At 9:01 PM, Anonymous Dennis Markatos-Soriano said...

Nice post,

There are pretty intense changes in US energy (especially driving) habits underway already. One exciting result is that we are consuming more than 5% less oil in ‘08 and thus carbon emissions are poised to fall 2.5% this year. See details at:
http://setenergy.org/2008/11/13/a-banner-year-for-us-climate-research-sees-sharp-emissions-drop/

Even China emissions are falling this quarter as electricity consumption falls a record in November. See details at: http://setenergy.org/2008/12/05/china-power-generation-falls-record-amount-climate-hope-alive/

The real challenge will be how we continue emissions reduction once the economy picks up again.

If you find the SET daily blog on major energy and climate developments useful at http://www.setenergy.org , please consider adding it to your blogroll.

Onwards to sustainability,
Dennis

 
At 4:53 AM, Blogger resclove said...

Great suggestions, Sarah. I'd add that we should be examining infrastructure investments using many social criteria -- including impacts on sustainability, local economic self-reliance (provides buffering against vagaries of global markets), democratic civil society, civil rights, etc.

Example: Historically, large-scale infrastructural systems (including regional electric, water and highway systems) have been associated with declining role for local government -- the level of government most accessible to involvement by everyday folks.

Example: Nuclear power (heavily subsidized by current federal policies), is vulnerable to catastrophic sabotage -- horrifying in itself, but also a severe threat to civil rights and liberties. Once there's a serious threat or attack on a nuclear plant, our civil liberties will be held hostage to the imperative to protect the remaining operating plants.

Example: A modest tax on Internet commerce would help support local economies, providing numerous environmental and social benefits.

Conventional economic analysis -- which dominates federal policymaking -- cannot take such considerations into account.

All best,
Dick Sclove

 
At 8:56 PM, Blogger Sandwichman said...

I'm beginning to cringe whenever I hear the words "stimulus package". The underlying idea is that we somehow need economic growth to do good things. We need to do more good things but we also need to do an awful lot less of bad things. If the total doesn't add up to "growth", so be it.

Peter Victor has written a book, published in October, titled "Managing Without Growth." He talks about how the idea of economic growth only became embedded as a keystone of government policy in the late 1950s and early 60s. He also presents a revealing model of how we can reduce poverty, unemployment and greenhouse gases without economic growth. A key is reducing work time.

 

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