Robert B. Zoellick: A World in Crisis Means A Chance for Greatness
Aspiring U.S. politicians dream of being FDR, but rarely do the times and the person converge. The next president will have the chance to be a 21st-century FDR.
For either Barack Obama or John McCain, the first duty will be to restore confidence. Hundreds of billions of dollars have been allotted to fix the financial breakdown. But fears have gripped the country. The new president needs not only a bold program but also the resolution to reassure.
The parallels with FDR offer a striking starting point. The new administration will need to recapitalize banks. It will also need to offer millions of American families a lifeline by helping homeowners manage their mortgage debts while staying in their homes. This modernized New Deal would simultaneously extend a hand to the broad middle class while countering the continuing slide in house prices that continue to drive down communities, lenders' portfolios and trust. The new president will need to overhaul a failed financial regulatory and supervisory system in a way that preserves innovation.
He will need to establish clearing and settlement mechanisms to ensure that failing firms do not freeze credit markets, to set strong liquidity as well as capital standards for the financial sector, and to thwart irresponsible behavior. And beyond all that, the new team will need a fiscal-stimulus package that the New Deal left out.
Political leadership is not just about programs and bills. The new president will need to use his first hundred days to build his standing. He must point the way to use the United States' ingenuity and restored sense of purpose to build for the future: quality schools, basic health-care choices and worker assistance to help citizens adjust to change in a competitive world; immigration rules that let the United States attract talent and regenerate its spirit; and more low-carbon technology to enable growth while protecting both the environment and national security. Then, after opening the coffers of the U.S. Treasury, the president will need to guide both Congress and the public to rebuild savings and responsibility.
The next president faces another historic challenge: reintroducing the United States to the world. He could make a good start by promptly sending the vice president and the new secretaries of state, Treasury and defense to consult with countries large and small, developed and developing, on all continents. In early 1989, Secretary of State James A. Baker III visited 15 NATO allies in eight days. With four emissaries, the new president could reach 50 countries or more in his first months in office....
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For either Barack Obama or John McCain, the first duty will be to restore confidence. Hundreds of billions of dollars have been allotted to fix the financial breakdown. But fears have gripped the country. The new president needs not only a bold program but also the resolution to reassure.
The parallels with FDR offer a striking starting point. The new administration will need to recapitalize banks. It will also need to offer millions of American families a lifeline by helping homeowners manage their mortgage debts while staying in their homes. This modernized New Deal would simultaneously extend a hand to the broad middle class while countering the continuing slide in house prices that continue to drive down communities, lenders' portfolios and trust. The new president will need to overhaul a failed financial regulatory and supervisory system in a way that preserves innovation.
He will need to establish clearing and settlement mechanisms to ensure that failing firms do not freeze credit markets, to set strong liquidity as well as capital standards for the financial sector, and to thwart irresponsible behavior. And beyond all that, the new team will need a fiscal-stimulus package that the New Deal left out.
Political leadership is not just about programs and bills. The new president will need to use his first hundred days to build his standing. He must point the way to use the United States' ingenuity and restored sense of purpose to build for the future: quality schools, basic health-care choices and worker assistance to help citizens adjust to change in a competitive world; immigration rules that let the United States attract talent and regenerate its spirit; and more low-carbon technology to enable growth while protecting both the environment and national security. Then, after opening the coffers of the U.S. Treasury, the president will need to guide both Congress and the public to rebuild savings and responsibility.
The next president faces another historic challenge: reintroducing the United States to the world. He could make a good start by promptly sending the vice president and the new secretaries of state, Treasury and defense to consult with countries large and small, developed and developing, on all continents. In early 1989, Secretary of State James A. Baker III visited 15 NATO allies in eight days. With four emissaries, the new president could reach 50 countries or more in his first months in office....