What Would You Do?

Journalist Judy Woodruff was on the radio this morning talking about the nation’s current economic crisis. She summarized the economic challenges we face and concluded with a question: “If any member of Congress is listening: what would you do? I don’t think anyone has a good and clear answer to that question.”

One could almost see her throwing up her hands in despair, an emotion shared by millions of Americans.

In my view, no one has yet been able to articulate a clear vision of government actions that should be taken to address the complex integrated nature of the entire economy. Mortgage foreclosures, investment firms failing, insurance companies struggling, banks facing insolvency, the entire auto industry on the brink of bankruptcy – and all demand immediate attention.

Ben Franklin noted the natural aversion of man to anticipate and solve problems before they rise to crisis proportions. In his autobiography, he wrote of developing an early plan to unite the colonies and coordinate their resources to provide for their common defense. He was anticipating war with France and tried to advance this idea before a congress of commissioners from each of the colonies meeting in Albany, New York in 1754. (As usual, old Ben was ahead of his time.)

Ultimately, the Franklin plan was judged too bold for the time and rejected on both sides of the Atlantic. Franklin writes in his memoirs that perhaps the later “bloody contest” with England could have been avoided if the congress had the vision to adopt his plan. “But such mistakes are not new: history is full of the errors of states and princes,” he wrote. “Look round the habitable world: how few know their own good, or knowing it, pursue.”

In other words, those who govern are frequently too busy handling the problems of the moment to engage their intellect in a visionary exercise that might anticipate a more urgent problem advancing on the horizon. Franklin wrote, “The best public measures are therefore seldom adopted from previous wisdom, but forced by the occasion.”

And so, that’s where we are today:” forced by the occasion” of economic crisis to develop the “best public measure” to address it. President Roosevelt would understand. When FDR was elected in 1932, America was on the precipice of disaster and the state of the union was not good. Fourteen million Americans were out of work when FDR launched his New Deal. If you think the Bush administration and the current Congress have already overstepped in attempting to save the aforementioned industries, consider just some of the steps Roosevelt took in his first 100 days in office:

Emergency Banking Act, giving the President broad powers over all banking transactions.

Economy Act, reducing the salaries of federal employees and payments to veterans.

Reforestation Relief Act, establishing the Civilian Conservation Corps which eventually provided work to 250,000 young men.

Federal Emergency Relief Act, providing grants to states for relief projects.

Tennessee Valley Authority established, providing for construction of dams and power plants in the Tennessee Valley.

Federal Securities Act, providing for the government to register and approve all issues of stocks and bonds.

National Employment System Act, creating a US Employment Service to cooperate with the states in providing employment services.

Homeowners Refinancing Act, providing mortgage money and other aid to homeowners.

National Industrial Recovery Act established the Public Works Administration, providing funds for a major public works program.

Farm Credit Act helped farmers get mortgages at low interest rates.

Banking Act of 1933 sets up the FDIC which was empowered to insure individual bank deposits.

And all that was done in the first 100 days of the new Roosevelt administration. And oh yes, FDR also took America off the gold standard during that time. The net effect was to devalue the dollar and stimulate the economy. The stock market began to recover.

Today, President-elect Barack Obama announced his team of economic advisers and they include Tim Geithner, Secretary of the Treasury and Lawrence Summers, Chair of the National Economic Council. America has been crying for leadership. Now it begins. It appears we don't have to wait until January 20th for the leadership we seek.

So, to Judy Woodruff and anyone else looking for a clear answer, I would say this: If the past is prologue, buckle up and get ready for bold steps and visionary leadership.

It's about time.