Obamanomics

As Mr. Obama starts his transition to the presidency, we start to see which campaign promises will be glossed over and which will be pursued. There are indications that he is at least attempting to govern somewhat from the middle. It appears he will go forward with his infrastructure rebuilding, which will act as a intermediate range stimulus, and also eventually boost the business community. Infrastructure spending is one of the less offensive forms of government spending, if done correctly. He also looks likely to appoint Mr. Volcker to head his economic advisory board. As I noted earlier, he is also open to at least delaying the tax increases he proposed for the top bracket.

If Mr. Obama is able to focus his party on center-left economic policy, and to minimize their unpopular social policies, such as gun control and wealth redistribution rhetoric, he will prove a powerful force, unstoppable in 2012. Mr. Obama is also smart enough to realize that if he wants his more radical agenda, he will need to postpone it until his second term, and that the key to getting a second term is to fix the economy without making too many people upset.