Obama too timid on the economy

I know that President Obama didn't create this economic mess, he inherited it from his predecessor. But the President's failure to begin to turn it around stems from the fact that his economic team is dominated by the same Wall Street advisers that got us in this mess in the first place. In his State of the Union address tonight, I understand the President is going to ask for some tax credits and other subsidies intended to help middle-class Americans with some big expenses, like day care, student-loan payments and retirement savings, and a a three-year spending freeze in many discretionary domestic programs, and for increases no greater than inflation after that. The spending freeze seems more image-building than anything else. For one thing, the President's pet programs -- education and the environment -- will be exempt. For another, the freeze will only account for $10 billion out of a total package of $500 billion in domestic programs.

The problem with these initiatives is that even if they work as planned, Americans need much more. They need leadership that is more inspired and an agenda that is bigger and more detailed than these ideas. This recession is not like others in our recent past. It has not been caused by a cyclical downturn in the business climate; instead it is the result of flawed economic policies that have severely damaged the core of our economy. This country needs to create at least 10 million jobs -- that's right, 10 million jobs -- to get this economy back on sure footing. Right now there are six applicants for every job opening, which means prolonged spells of unemployment for many of the nation’s 15.3 million jobless workers. Without new jobs, economic performance and tax revenues will remain inadequate.

I would like to see the President propose three possible solutions:

1. A stimulus package that would help bail out state and municipal governments. This is among the surest ways to preserve and create jobs because the money is pushed through quickly to employees, contractors and beneficiaries. The alternative is recovery-killing spending cuts and tax increases on the state and local levels.

2. Increased small business lending and direct creation of both skilled and low-skilled jobs.

3. Allow homeowners to include their mortgages in their bankruptcy filings.

Of course, the President must also embrace ways to pay for initiatives. I would suggest redeploying money from the bank bailout or endorsing a financial-transactions tax on Wall Street.

The President's timidity on solving the country's economic woes must end now. He campaigned on a theme of "Yes we can." It's past time to prove that we can.