Obama gets more economic advice, gives some to auto and bank execs
Beefing up his economic team, President-elect Barack Obama today named former Federal Reserve Chairman Paul Volcker to lead an advisory panel on dealing with the financial crisis.
Austan Goolsbee, a University of Chicago economist and key Obama policy adviser, will serve as the panel's staff director.
The Economic Recovery Advisory Board, modeled on the Foreign Intelligence Advisory Board created by President Eisenhower to give independent counsel on intelligence issues, is to give Obama independent, nonpartisan information, analysis, and advice. Obama said it will help him avoid "groupthink" that infects Washington.
"At this defining moment for our nation, the old ways of thinking and acting just won’t do. They call for us to seek fresh thinking and bold new ideas from the leading minds across America. And they demand that as we chart a course to economic recovery, we ensure that our government – your government – is held accountable for delivering results. Today, I’m pleased to announce the formation of a new institution to help our economic team accomplish these goals," Obama said at a news conference in Chicago, his third in three days on the economy.
Asked whether his series of press conferences reflected frustration with the Bush administration's response to the economic crisis, Obama sidestepped direct criticism of the president or Treasury Secretary Henry Paulson, saying he was frustrated by eight years of declining middle class wages, families losing health insurance and pensions, and Washington's inability to tackle crucial problems.
"I was elected with the charge of getting this economy back in shape," he said.
Asked for holiday shopping advice, Obama said families are justifiably nervous about their financial situation, but they need to be confident that the country will recover from recession, as it has before. He said the country cannot afford to get caught up in a downward spiral of consumers pulling back spending, then businesses pulling back on hiring and purchasing, and on and on.
"Our future is bright if we make good decisions," he said. "People should understand that help is on the way."
Obama, however, refused again to detail his stimulus plan, saying his team is working on it and vowing that it would create or save 2.5 million jobs.
Asked about supporters disillusioned by the number of Washington insiders being put in his cabinet and top administration jobs, he argued that Volcker has not been in Washington for years and that Goolsbee is "about as fresh a face as you can get."
More broadly, he said the criticism that he's "recycling" Clinton administration appointees is misplaced because it was the last Democratic presidency and it would be surprising if he selected a treasury secretary who had no connection to Clinton and no experience in Washington whatsoever. In fact, he said, the American people would be troubled if he picked inexperienced people at a time of crisis.
"We are going to combine experience with fresh thinking," Obama asserted. To those worried that he is not offering the change he promised during the campaign, he argued that the vision for change comes from him.
"That's my job," he said.
UPDATE: Meanwhile, in an interview airing tonight on ABC News, Obama said the economic crisis keeps him up at night.
"One of the concerns I have is that the economy is so weakened that the next 60 days are going to be difficult because we've got a president who, even though he may mean well, is now sort of in lame-duck status [and] Congress isn't in [session]."
"And I don't have the reins of power," he added.
Obama said he and his economic team would scrutinize how the $700 billion financial bailout fund is spent. "I'm not president yet, so I don't know yet how much more money is going to be spent. I'm going to scrutinize very carefully how that money is spent. If the Bush administration chooses to draw down that money, then I'm going to have something to say about whether it's doing it wisely," he said.
Also in the interview with Barbara Walters, Obama slapped the Big Three auto executives for taking luxury private jets to Washington last week to plead for $25 billion in federal loans.
"Well, I thought maybe they're a little tone-deaf to what's happening in America right now," he said in an interview aired this morning on ABC. "And this has been a chronic problem, not just for the auto industry -- I mean, when people are pulling down $100 million bonuses on Wall Street and taking enormous risks with other people's money, that indicates a sense that you don't have any perspective on what's happening to ordinary Americans."
Asked whether bank executives should give up their year-end bonuses, Obama replied, "I think they should. That's an example of taking responsibility. I think that if you are already worth tens of millions of dollars and you are having to lay off workers, the least you can do is say, I'm willing to make some sacrifice as well, because I recognize that there are people who are less well-off who are going through some pretty tough times."
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Great a special advisory panel. Here we go with the big government and special committees. Any chance Mr. Volcker and his special committee will be working for free? I doubt it. The republicans give out big money contracts to their friends while the Dems just put their friends in choice positions to suck off the government tit. Not sure which is worse.
Thats what these dummies get for making cars they HOPE people will buy, not making cars people WILL buy.
Hey, lets make a hummer, only a bit smaller. I have an idea...an escalade with 5 rows of theatre style seating.
Hey, its got a hemi!
Lie in the bed you make....
i voted Baldwin for president, but am grateful to God to hear Obama's empathy
Hooray, hooray, hooray, at last a real President has come forth and is telling it like it is! I'm sure he'll be asking for something from the little people as well. Things like you also must take responsibility for keeping the American dream alive. You also must not be dupes for Wall St. and Madison Ave. In other words THINK before you act. Happy Holidays to All.
I love, love, love Obama's comments....."tone deaf" and "indicates don't have any perspective" sums it up beautifully.....the exec's arrogance is such a "let them eat cake" mentality.....- it Detroit isn't going to retrofit...then let the existing power people there go down in flames and if they want the government to bail them out.....then the government will be the decision-makers in retrofitting future cars/trucks etc. I learned at an early age....whoever is paying the bills makes the rules. For the first time in a long time...I am feeling truly optimistic that we now have someone at the helm in Washington that has a brain, knows how to think/plan and more importanly, knows how to tap into people truly knowledgeable in their field(s). God bless him!!!!
It's about time someone in a leadership position spoke the truth. Keep it up!
People bought hummers for years. Detroit doesn't make bad cars, people would rather buy a honda for $500 less thinking they are being thrifty and saving money. but in the end, they didn't support the US economy, and now it is crumbling.
Who else is going to take care of the mess the repub's made. At least Obama is picking qualified folks... "Brownie, you're doing a heck of a job."
Hey Paul, wake up and smell the coffee that has been brewed for the past 8 years. The Republicans not only give no-bid contracts worth billions to their good buddies, they also lay havoc to our environment and economy and that of the world as well. The Dems may waste our tax dollars, but at least they try to protect the ordinary working Joe (plumber and six-pack) and our environment. (they also don't go around the world kidnapping people and throwing them into jail for years with no due process).
"tone deaf" is being nice. in 2003 we went to the auto show at the bayside to look at hybrids. the american manufacturers were condesending at best, boasting that high mileage cars and hybrids were a "fad", and that they had no plans "anytime in the near future" to jump into the frey. we bought a prius which gets about 40-45 mpg average, and guess what - the future is now.
i love it when the self-righteous fall. revenge is best served cold - let them bail themselves out.
Nationalize the US auto companies - that's the only way we'll break their unholy alliance with big oil and start producing the 21st century environmentally sound cars and trucks that we need.
I tried, I tried, I tried to buy an American car . . . I used to feel unloyal driving Toyotas, but somewhere in the heart of that company is someone who has thought carefully about customers, not only what they want, but what they will need and what is reasonable. Of course, this too will change.
Obama has nailed it perfectly, these execs are tone-deaf. They have no humility or humanity. Bill Ford, stand up as you know you should and pay Mullaly based on performance. I guarantee you, that if you give me 10 million per year, me and the twenty other executives I will hire will do a far better job.
Hooray, hooray, hooray! At last a President that GETS IT!
Great, we have a President elect who decides to look for non partisan advice and analysis from outside the beltway and people are objecting. I have not seen one thing ,beyond the BAILOUT, from the Bush administration or it's congressional allies that goes to solving the most serious threat to our country since WW2. It's the economy and in the next 58 days a befuddled Bush will fiddle while the US economy melts down. Give me a responsible "tax and spend "democrat over a "spend and spend more" republican any day.
Obama's on the right track. I don't like everything he's doing or everyone he's appointing but c'mon. His administration will be light years better than the thieves and crooks who've been running the show the past 8 years.
So far I am liking what I am hearing, but I want to see the finish project. Obama maybe the best choice we have had since Reagan, but I will let his actions speak louder than his words and so far, so good.
To those who constantly complain about Obama's selection of former Clinton cabinet members, consider this. Obama faced a no-win situation in dealing with the economic disaster. If he appoints people with heavy-weight experience, he gets hammered by people screaming, "This is change?"
If he chooses outsiders to handle the mess, he'd be accused of putting the country at risk.
For the countless snide, nay-sayers out there, here’s an idea: tell us who you’d pick and what exactly you'd do differently. Or…find a new argument. This one’s not only getting old, it pointless.
CEO make way too much, we the one with BS, MS, PhD in engineering are the one
suffered the most. Some guys with no technical backgound, or just BA degree in
marketing or whatever get to the top like speed of light and, I think it is about time Obama give those CEOs, VP a piece of his mind. Narrowing the earning gap between the CEO and entry level position is the key to economy reform, CEO spends so much that hotel owner so wealth that gave $12 millions to her
dogs than helping the people who really needs them.
I like his concern for all american people and he should pound on that issue very often.Not just CEOs but all people running businesse,non profit organisation,families and each individual living in this country we all need to sacrifice in one way or another.May I suggest one of the best organize charity program in this country is the Mormon Church Welfare Program where people that need food or help with their rent,utilities and phone bills will get help while seeking employment.Some people in this country spoke out against churches and religions as if they don't deserve to be in existence but hey these churches and religions are doing a heck lot of job in feeding the poor and those in needs as well in helping them spiritually so that society live in peace and respect others.I really suggests that the government and those in leadership in this nation whether federal,state,city or in the county level need to respect churches and religions because without them this country will look like a mess.