Government interference in business ranks as one of the worst ideas of the Great Recession (GR), according to an unscientific poll conducted this month by the TGR. More specifically, the poll points to what the Obama administration has done—and proposed to do—during this period. While there is widespread agreement that something must be done about healthcare reform, other actions, particularly those concerning executive pay, government takeovers, and regulation, have sparked significant criticism.
Worst Ideas: Government Intervention
At the top of the “worst ideas” list is the government’s takeover of General Motors (GM) and Chrysler. A close second is the administration’s focus on executive compensation, which includes restrictions and the appointment of a compensation czar. These actions have raised concerns, especially as the government has inserted itself deeper into the private sector during a time of economic distress.
Best Ideas: Personal Reflection Amidst Crisis
On the flip side, some respondents believe the recession has prompted families and friends to rediscover what truly matters in life. This more personal response is harder to quantify, but it points to the deeper effects of the recession that go beyond economic measures.
A Missed Leadership Mandate
While it’s easy to criticize the Obama administration, what is more disheartening is watching a newly elected government fail to meet its leadership mandate. Obama was elected to steer the nation away from the policies of the Bush era and to make government work more effectively—without bankrupting the country. He was not elected to increase regulation or delegate major challenges to a Congress that has shown time and again that it’s driven by selfish interests rather than the common good.
Some may argue that Obama was forced into these actions or that this was his plan all along. However, true leadership requires a clear vision and proactive action. Let’s revisit a few key moments where the mandate started to falter.
Early Appointments and the Mandate Shift
The turning point began when the Obama administration filled its ranks with “the best and brightest” who had already served in government. This move, early in his tenure, seemed to signal a shift away from the promises of change and reform. The real test of leadership came before the debates over healthcare, with the handling of the Troubled Asset Relief Program (TARP), which many now see as a holdover from the Bush administration.
The Stimulus Package and Missed Opportunities
The stimulus package, while necessary for aiding the unemployed, has been widely criticized for not offering enough support to small businesses. With only 10 percent of the approved funding expected to be spent this year, many view the package as more about politics as usual than genuine economic stimulus.
It’s becoming increasingly difficult to ask for shared sacrifice when major corporate CEOs continue to benefit without paying their dues. And then there’s the issue of Cap and Trade, another special-interest-driven piece of legislation that has repeatedly appeared on the “worst of the GR” list.
Continuing Failures and Lack of Accountability
Why didn’t Obama and Treasury Secretary Tim Geithner take a stronger stand on ending the special favors attached to TARP? Why do we continue to funnel public money to institutions like AIG? And why hasn’t there been greater transparency regarding the toxic assets sitting on major banks’ balance sheets? These unanswered questions only add to the frustration surrounding the administration’s response to the crisis.
These failures are not entirely surprising, given that the current administration is filled with members from previous governments. The pattern of revolving-door politics continues to make it difficult for the government to break free from the status quo.
Not a Partisan Issue: A Call for Change
This isn’t an attack on Obama, nor is it an anti-Obama campaign. The goal is for the president to succeed. However, until more elected leaders show a genuine interest in reforming government processes, we will continue to see the same ineffective actions that have plagued Washington for years.
To those who elected Obama, what are your thoughts on his performance so far? Do you feel that the candidate you voted for is still the president in office? Take a step back and reflect on these lines, and feel free to share your thoughts.
The CEO Parallel: Aspirations vs. Reality
In the corporate world, CEOs often spend their entire careers vying for the top job, only to find that the reality of the position differs significantly from their expectations. Obama’s experience mirrors this: he campaigned on change and hope, only to find that executing those promises has proven far more difficult than anticipated.
Hope for the Future: Time to Get It Right
The good news is that there’s still time for the Obama administration to realign with its original mandate. Great leaders learn and adjust. We’ll be watching closely for signs that the president is making the necessary changes. For those who argue that “it’s only been six months,” we say: Time is relative. When the mandate is misunderstood or missed, the consequences often reverberate through every decision that follows.