President-Elect Obama Takes Aim at the Economy
Friday, November 07, 2008SUSIE GHARIB: President-Elect Barack Obama pledged today to act swiftly to solve the nation's economic problems. Mr. Obama opened his first news conference since winning the presidential election by saying today's grim employment report was sobering, calling for a second fiscal stimulus plan and extending unemployment benefits to help struggling Americans. Joining me now with more on Mr. Obama's comments, Washington bureau chief, Darren Gersh. Hi Darren.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Hey, Susie. Well, look, as you know, it's a very delicate balancing act the president- elect is trying to pull off. While he pledged to act decisively, he's also managing expectations for an economic miracle. The president-elect skipped over the first rule of holes, which is if you find yourself in one, stop digging. Today's employment report makes it clear the economy hasn't hit bottom. So Obama went right to what might be called the second rule of holes.
BARACK OBAMA, PRESIDENT-ELECT: I have said before and I will repeat again, it is not going to be quick and it's not going to be easy for us to dig ourselves out of the hole that we are in, but America is a strong and resilient country and I know we will succeed.
GERSH: Many Wall Street pundits have speculated the new administration would take immediate action, beginning with naming an economic team a day or two after the election. But policy analyst Andy Laperriere says there's a reason Obama stressed there is only one president at a time. He's trying to adjust down some unrealistic expectations that the new government will start tomorrow.
ANDY LAPERRIERE, MANAGING DIRECTOR, ISI: There are real practical issues involved in a transition. I mean it takes a few weeks for the FBI to do the background check on a potential Treasury secretary. You just can't come in and a few days after the election start naming your cabinet and changing policy. It just doesn't work that way.
GERSH: The president-elect did lay down some markers. He pushed for an immediate economic stimulus package. If the lame duck Congress doesn't pass one in coming weeks, Obama pledged to do so right after he's sworn in. He also urged the Bush Treasury to work with the FDIC and other agencies to prevent foreclosures. And Obama pressed for immediate help for the auto industry.
OBAMA: I would like to see the administration do everything it can to accelerate the retooling assistance that Congress has already enacted. In addition, I've made it a high priority for my transition team to work on additional policy options to help the auto industry adjust.
GERSH: But the president-elect also talked about the need to make difficult choices. Lapperiere says that's another part of the expectations offensive.
LAPERRIERE: And he's also I think paving the way for later on, where he's going to have to say we have some tough choices to make. Therefore I may not be able to do this or this is the reason we have to cut back this program or this is the reason we have to raise taxes or something along those lines.
GERSH: Now Susie on a little bit of a lighter note, Obama also worked on expectations for the family puppy. He said they might go to a shelter provided they can find a dog that won't aggravate daughter Malia's (ph) allergies.
GHARIB: I thought that was a really cute part of the press conference. Darren what was your take on the tone of the press conference and the way that Mr. Obama conducted himself.
GERSH: Well, look, he seemed very calm and very much in charge, especially considering how bad the economic news is. He also does very well in these kind of settings. People I know who have met with him say that he listens extremely well and people get a sense he can take in a lot of information at once.
GHARIB: We saw Mr. Obama flanked by top CEOs and heavy hitters from both the business and political arenas. Do you think that was symbolic or do you think that these people will really play a substantial role in shaping economic policy?
GERSH: Susie, I think it was a little bit of both. You know a lot of these people. They've been on our program. We've both interviewed them, Robert Rubin, Larry Summers. These are people who have been in the Clinton administration. They're schooled in crises. Paul Volcker, 81-years old, was Fed chairman. He's seen it all. That was part of the message, that these people have the experience to deal with the economic mess that we're in.
GHARIB: And Obama seemed to say that he's not going to be in any rush to make appointments for his economic team and he's not going to be hasty in any way. What kind of manager, what kind of decision maker do you think he'll be as president, based on what you saw today?
GERSH: That is a very interesting question because on the one hand, Obama has always come off as very calm, collected and deliberate. He likes to think about things, but there are some people who are concerned that he's a little too deliberate, that he doesn't make decisions, that he's not decisive, that he isn't willing to call it right away and you know, drive policy forward. We got a signal on that today when he picked Rahm Emanuel, the congressman and congressional leader to be his chief of staff. Rahm Emanuel's MO is somebody who get things done with a sledge hammer if needed.
GHARIB: That's a really good point. We'll see how things unfold. Darren, thanks a lot for coming on the program tonight. Darren Gersh, Washington bureau chief.
