I have taken a couple of weeks to read and re-read Bill Clinton's Back to Work: Why We Need Smart Government for a Strong Economy. I wanted to pass along my perspective.
First a growl. Why can I get a hardbound version of the text shipped in two days for $14.37, but the version I download to my Kindle is $11.99? Amazon explains the price was set by the publisher. My heartburn is with the publisher because it maximized profit rather than providing a fair price to the consumer.
The ex-President expends considerable pages in defending his administration's economic policies instead of launching into the discussion of how we got here and how we can extract ourselves from this sorry mess. To be fair, he was the last President who achieved a balanced budget, but I confess I grew weary of the political discussions. I will also add that I believe he is honestly passionate about wanting to get America back to a strong economy.
He convincingly explains the political climate has changed. Once we had idealists but today we have ideologues who are committed to a specific perspective even when the data changes.
He also writes, "In the 1980s, Wall Street and many large corporations embraced what was then a new idea - that publicly traded companies' first and overwhelming obligation is to their shareholders. Until that time, most people thought that a corporation, which receives limited liability and other privileges under the law, owed an obligation to all its stakeholders, including shareholders, employees, customers and the communities of which they are a part."
This change in perspective has resulted in fiscal quarter-by-quarter microscopic focus on profit, exorbitant executive compensation, and decreased research and development, not to mention, almost disregard for employees and their communities.
The former President meticulously reviews multiple metrics such as college enrollment, economic mobility, quality of life, etc, which indicate America has slipped from the 70s and 80s while other countries have improved.
His prescription to economic health is rather complex and lengthy, but I would argue far more substantive than the complete austerity measures being deployed in Europe. First, we need to resolve the mortgage crisis. Somehow the government and the banks must share a write-down and get the housing market out of the tank. Second, the banks need to be encouraged to lend. He suggests that the banks be charged a parking fee for funds placed in the Federal Reserve. Change corporate taxing and tax the shareholders appropriately so the companies have reason to bring international profits back into the USA instead of investing where the corporate rates are lower. Fix our dependency upon foreign oil with green energy research. There is a lot more - as I said, it is a complete list, and way too lengthy to pass through our political process.
So what do I think? I think he could do it. He did it before. Since our current constitution forbids him to run for a third term, I think we need to somehow use his considerable intellect and experience to better national advantage.
The book is not an easy read - but he has changed my perspective on some of his recommendations. I recommend the book because America needs informed voices participating in the economic debates. We must avoid the problems Europe is experiencing.
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