New Politics of the Common Good: Running Risks on the Side of Honesty

The only way President-elect Barack Obama can expect to live up to the hopes invested in him is to run all the risks on the side honesty. In his forthcoming press conference and speech, he should tell the people about sacrifices he expects from them to rebuild America as well as how he plans to honor his many promises especially for the economy.

Obama’s resounding victory demonstrates that the old politics of social divides and religious and nationalist fervor is being replaced by the new will of the people. That will dictates changes in America’s political and economic life styles towards more working together for the cumulative wealth and strength of the nation rather than fratricidal in-fighting at the cost of the nation.

His election gives tangible meaning in politics to the American Constitution’s promise of equal treatment for everyone because of respect for the dignity of each human being.

But this promise has not yet received tangible meaning in economic terms. Giving it meaning requires a new politics of the common good where the need to uplift people is placed at the centre of all decisions instead of the need to maximize value for shareholders. This is very good economics because people provide the demand that drives all economic activity to deliver profits.

Politicians usually shy away from asking the people for help to create a better society and nation because polls and advisers tell them to seek popularity rather than sticking to principle. This happens often because key issues are reduced to numbers thought to reflect the average person.

But there is no average person. All are capable of understanding challenges and the need to work through solutions. In fact, most people are better than the average.

Obama’s success is proof that his electors are far above average. Despite two on-going wars and a cataclysmic economic meltdown, they did not retreat into narrow minded identity politics or reject the other. Currently, there are many reasons for fear because economic and political uncertainties have increased. Yet, electors did not vote their fear. They voted their hope and their determination to change things.

Now that equality of all persons is clearly embedded in politics, it is time to spread it to the economy. The current economic miasma will not recede until the poorest Americans get a better deal and there is more social equity and fairness.

This does not require socialist-style redistribution of income. It requires better but not more regulation of the excesses of open-market capitalism that stoke greed to the point where those on the way up step upon those below.

Implementing politics of the common good means that shareholders learn to see value over the medium and long terms instead of the next quarter. The longer term value would be sustained and perhaps even steady instead of being a string of great quarters that suddenly evaporate when the bubble bursts.

It also means creating better regulations to encourage business activities that strengthen asset values instead of ever-more speculation in a virtual financial casino. In that casino, the chips are complex paper instruments very distant from the underlying physical asset they were originally created to represent.

When the paper instruments collapse the monetary value of the physical asset also collapses despite its high intrinsic value. Only better regulations can prevent or slow down such breakdowns in the future.

Obama cannot succeed as President without the people’s backing. He got this during the election process by running an extraordinary campaign. In the real world of governance, he will get the people’s backing only if he delivers quick and pragmatic results particularly for the economy.

That requires flexibility, common sense and boldness. He has made a good start by choosing hard-nosed Rahm Emanuel as White House chief- of-staff. This shows he wants people in his administration who have experience, know how to network and a no-nonsense approach to getting things done.

The persons chosen in coming weeks will reveal whether this getting-things-done approach stays or the Washington beltway’s old politics take over the Obama administration as well.