An address I hope President Obama will deliver

What he needs to say and do to create an economy that serves human rather than financial values.

David Korten | March 2009 issue

President Barack Obama

Photo: Linda Wolf

Barack Obama was elected to the U.S. presidency on a promise of change. Before his inauguration, indeed before his election, I drafted the following as my dream for the economic address he might deliver during his administration in fulfillment of the economic aspect of that promise. This speech presents the missing option—the program that a U.S. president must one day be able to announce and implement if there's to be any hope for our economic, social and environmental future.

Fellow Citizens,

My administration came to office with a mandate for bold action at a time when our most powerful economic institutions had clearly failed us. They crippled our economy; burdened our federal, state and local governments with debilitating debts; divided us between the profligate and the desperate; corrupted our political institutions; and threatened the destruction of the natural environment on which our very lives depend.

The failure can be traced directly to an ideology that says if government favors the financial interests of the rich, disregarding all else, everyone will benefit and the nation will prosper. A 30-year experiment with trickle-down economics that favored the interests of Wall Street speculators over the hard-working people and businesses of Main Street proved not to work. We now live with the devastating consequences.

Corrective action begins with recognition that our economic crisis is, at its core, a moral crisis. Our economic institutions and rules, even the indicators by which we measure economic performance, consistently place financial values ahead of life values. We have no more time or resources to devote to fixing a system based on false values and a discredited ideology. We must now come together to create the institutions of a new economy founded on a values-based pragmatism that recognizes a simple truth: If the world is to work for any of us, it must work for all of us.

Let us henceforth measure economic performance by the indicators of what we really want: the health and well-being of our children, families, communities and natural environments. We'll henceforth strive to grow the things we really want, while seeking to reduce the cost in money and natural resources:

We'll strive for food independence by rebuilding our local food systems based on family farms and eco-friendly farming methods that revitalize the soil, maximize yields per acre, minimize the use of toxic chemicals and create opportunities for the many young people who are returning to the land.
We'll strive for energy independence by supporting local entrepreneurs who are creating and growing local businesses to retrofit our buildings and develop and apply renewable energy technologies.

We'll rebuild our infrastructure around a model of walkable, bicycle-friendly communities with efficient public transportation to conserve energy, nurture the relationships of community and recover our farms and forest lands.
We'll seek to create a true ownership society in which all people have the opportunity to own their own homes and have an ownership stake in the enterprises on which their livelihoods depend. Our economic policies will favor responsible local ownership of local enterprises by people who have a stake in the health of their local communities and economies.

There will be no more government bailouts of failed corporations during my administration. Any private corporation that's too big to fail is too big to exist. We'll institute vigorous antitrust enforcement to break up excessive concentrations of economic power and restore market discipline.

There's no place in a life-serving 21st-century economy for financial speculation, predatory lending or institutions that exist primarily to engage in these illegitimate practices. We'll act to render Wall Street's casino-like operations unprofitable. The brainpower and computing capacity now devoted to trading electronic documents in speculative financial markets will be put to work solving real social and environmental problems and financing life-serving Main Street enterprises that create green living-wage jobs.

By recommitting ourselves to the founding ideals of this great nation, focusing on our possibilities and liberating ourselves from failed ideas and institutions, together we can create a stronger, better nation that secures a fulfilling life for every person and honors the premise of the Declaration of Independence that every individual is endowed with an unalienable right to life, liberty and the pursuit of happiness.

David C. Korten is the author of When Corporations Rule the World and The Post Corporate World: Life After Capitalism, among other books. This is an edited excerpt from Agenda for a New Economy, published by Berrett-Koehler.

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Comments (6)

Obama's presidency is a historic event not only for America but for the resurgent unity seen around the world...

yourobamaupdate.blogspot.com

posted by Andreline on 1/20/2009 2:41 pm

I am honestly hoping that President Obama will address finding a cure for diabetes.

This video I recorded in 2007, addressed to presidential candidates, is still valid: www.youtube.com/watch?v=-ACmFaFuKu0

posted by askmanny on 2/25/2009 3:10 pm

A 30-year experiment with trickle-down economics that favored the interests of Wall Street speculators over the hard-working people and businesses of Main Street proved not to work. We now live with the devastating consequences.

Though this statement sounds good, please review the facts. 30 years ago we suffered crippling inflation, high unemployment and interest rates that were double or triple what they are today. Recall the old term the misery index (inflation+unemployment+interst rates). A little more history here. In the past twenty years we have gone through a technology boom which naturally resulted in slowdown which triggered a mild recession. This was followed by a major terrorist strike which combined with a recession forced our government to pump an excess of capital into our system. Our government didn't regulate the excessive capital in the markets and also wanted to loosen lending requirements so that home ownership virtually became a right. So we have this rather ugly situation we are in right now. Do we change everyting from the past 30 years, I say no way.

posted by Realitycheck on 3/ 1/2009 9:18 am

Dear President Obama,

I am writing this letter to you in hopes that you will address the issues I am writing about. Mr. President, I hope that you will speak about several areas that are important to me. As President Kennedy stated in his many famous speeches, “Ask not what your country can do for you, ask what you can do for your country.” As a child of a union worker that worked for one of the defense contracting firms that has downsized throughout the years, I believe in the power of hard work. My father worked twelve and sixteen hours a day, seven days a week when I was a toddler, and well into my teen years. He literally broke his back working so that he could provide for his family as the only bread-winner in the family. When he was not working at the factory, he was repairing something around the house. He eventually saved enough money to start his own business. He was not able to get a loan through the small business administration because of their confusing application process and miles of extra paperwork that he had to provide. Once he completed all he had to do, he was eventually denied because of lack business experience. Is it not the reason one wants to start a business because one has not done it before? The Small Business administration is a bureaucracy that looks good on the outside but is difficult to get inside. We need to seriously look at the Small Business Administration to see if they are truly serving the end customer, the small business. I propose we make it smaller and more localized to serve customers on main street rather than larger firms. Next, I believe that the companies that have a good record of accomplishment should be rewarded with tax cuts in our economy. These cuts have been done before and are proven to work. The tax cuts would increase capital in the firms’ balance sheets that will be invested in capital equipment and the most valuable resource, people. This would close the unemployment gap and cause the economy to flourish with investments from the private sector. I would completely revamp Freddie Mac® and Fannie Mae®. I would assign an inspection of all processes and get recommendations from a panel of experts in the housing mortgage sectors that do not have a stake in either of these two clearing houses. The end would be to fix the housing disaster and prevent it from happening in the future. This will cause these quasi-government firms to be more efficient in their mortgage lending processes. I believe in second chances. I would encourage home ownership by creating a second chance program to help previously foreclosed persons to buy a home with government guarantee. These homeowners would have to be in a program to get completely out of debt. A private sector company that has certain rules to how it teaches its programs runs this program. They have to have a good record of accomplishment and receive bonuses based on their performance. The future homeowners will have a certain amount of home they can buy, no more. This would dramatically lower the foreclosure rate in the United States, and give people more confidence when buying their home. Third, there will be no more bailout money given to firms that made bad business choices. If a firm would like money, they should use the private banking sector to get a loan. I believe Americans are Innovative and Creative. A firm that dissolves gives an opportunity for other newer firms to be created by creative individuals. If we keep the same unsuccessful firms, we will reap the same results. Give someone else, like a small business, a chance to build their own business offering better services than the bankrupt firms do. Finally, could you promise to revamp healthcare by forming groups of private firms that have innovative, creative ideas to establishing a healthcare system that is closely monitored by the government? This system would be run by the private sector to prevent a burden on the taxpayers. It would be accountable to the American people for its survival. President Obama, this will take good old American hard-work, determination, coupled with smaller government, tax cuts, training programs to reduce debt, and revamping our healthcare system. This will not be easy. I know that the American people have always found ways to innovate and create during the hardest times like after natural disasters and financial collapse. I believe we will find a way to get this country moving again.

posted by alexrivera58 on 3/30/2009 8:32 pm

My Friends,

Our commitment is unwavering. Our actions are deliberate. Our future is bright. How do we ensure a prosperous and resolute future? By making wise decisions now with our future in mind. We are now reaping the consequences of a system permeated by conceit and self-service. However, history has taught us that the greatest opportunities present themselves when change is thrust upon us. We dare because we must. This is one of those times…to redefine what we value most.

Policy triage is no easy task when demand is high, so evaluating the compounding points of impact is critical. The seemingly infinite list of challenges, from the economy and environment to healthcare and foreign relations, will take months and years to reconcile. In light of this knowledge, what can we do now to stimulate and inspire our citizens toward a peaceful and prosperous tomorrow?

America can be the leader of innovation and opportunity again, but we have to plan for it. We need blueprints for homes and trust professionals who have proven success in their field to help us realize our architectural dreams. For large building projects, diversity in ideas, experiences and cultures always yield the most unique solutions to complex problems. Should not curriculum and educational opportunities for future caretakers of our heritage be viewed in much the same way, or would we consciously choose to set them up for failure?

Today, I pledge to work with educators, young adults, parents and fellow government officials to design an educational system that works. This begins with early-learning programs and opens more doors to secondary education. To develop higher education opportunities for those in need, many ideas are being explored, such as: tuition incentives for community and military service, and reimbursement agreements for teachers through service in the public school system upon graduation to name a few.

With your active support over the next year, we can push ahead with small steps if necessary, but ahead we must tread. Now is the time. The opportunity is real. Our future is bright. Thank you.

posted by kimmersue45 on 3/30/2009 11:10 pm

I guess if there is one thing that people would wish for the Obama administration, it will be the move toward the economic recovery. We had been suffered for long time since global recession arises and I’m sure no body wants to suffer any much longer. Obama is here, keep our finger cross that he could do an appropriate solution on global financial crisis. Obama has cited John F. Kennedy as his inspiration for the bill. Signing up for AmeriCorps and other service organizations can get students out of needing installment loans for their education with Serve America Act.

personalmoneystore.com/moneyblog/2009/04/22/serve-america-act-aims-aid-nonprofits

posted by BrianF on 5/ 5/2009 2:11 am