Subscribe to Print Edition | Mon., November 10, 2008 Cheshvan 12, 5769 | | Israel Time: 11:43 (EST+7) web haaretz.com   Back to Homepage Haaretz Toolbar Diplomacy Defense Jewish World Opinion National Print Edition Car Rental Books Haaretz Magazine Business Real Estate U.S. election Travel Week's End Anglo File

Last update - 00:24 08/11/2008 Brutal realities may dim Obama's fire By Nehemia Shtrasler Tags: Obama, Financial Crisis The expectations from Barack Obama are fantastic. He is perceived as a symbol of hope, a prophet of change, the man who will save the world. He is not just a political leader. The whole attitude toward him is based on emotions, on love. To the American people, he is the great savior who will bring deliverance to the world, especially to minorities and the underprivileged. The process of salvation will begin not in Iraq or Iran, not with a solution to the problem of greenhouse gas emissions and not with shutting down the Guantanamo Bay detention camp, but with the economy. It is here that Obama will devote his energies in his first months in office, in light of the complex and volatile legacy that has been handed down to him. George Bush is leaving behind two ticking bombs: a massive budget deficit of a trillion dollars and a financial hurricane in danger of triggering a dire recession. The citizens of the United States and the whole world are now paying the price for the good life indulged in by the U.S. administration and the American people, who partied beyond their means, relying on credit without a second thought. The result was the collapse of the dollar, the crash of Wall Street, corporate firings and recession. Advertisement On the stump, Obama pledged over and over to change things. He declared that he would redistribute wealth in America - less to the rich, more to the poor. He promised a tax hike on the wealthy, i.e., those who make over 250,000 dollars a year. In the Clinton era, the marginal tax rate was 39.6 percent. Bush lowered it to 36 percent. Obama plans to bring it up again, to 40 percent. On the other hand, he said he would reduce taxes on low-income workers. He has similar plans for capital gains and corporate tax. Bush cut taxes in these sectors and Obama says he will raise them. Ditto for the estate tax, which Bush cut gradually and Obama wants to bring back to its former rate. Obama says he will channel large sums of money into welfare programs, raise the minimum wage and offer a state health insurance plan similar to the one that Hillary Clinton tried to launch during her husband's presidency. This plan will provide minimum health coverage for all citizens. Today, 46 million Americans have no health insurance and 25 million have only partial coverage. In keeping with his worldview, Obama will work to strengthen labor unions and allow workers to vote openly on the issue of unionizing at their workplace. Until now, these ballots were secret. Other promises include federal rescue funding to various industries that are now facing downsizing and lay-offs, and mortgage assistance to homeowners. Obama has also pledged to subsidize green industry. So rescue funding will not be limited to $700 billion in aid to the financial sector, but will include another $175 billion in aid to the general public, industry and infrastructure. Also, Obama is not a fan of free trade. In the election campaign, he spoke out against those who take jobs away from America by outsourcing them to foreign countries. He was talking about manufacturers that move their plants to countries where labor is cheap, like China and India. He believes he can stop this by imposing protective tariffs and other restrictions on free international trade. If these programs are implemented, the American economy is going to look very different. The United States will not become a social democracy a la Sweden, France or Germany, but it will be transformed from a capitalist country into one that is much more sensitive and considerate of the weak. The big problem is that these proposals are not going to be implemented anytime soon. They will require gargantuan sums of money that are simply out of the question in view of such a gaping hole in the budget. Likewise, it is highly unlikely that Obama will retreat from what has always been one of the cornerstones of American capitalism - free international trade. So chances are we will be seeing only one item on this long list being put into practice in the coming months: higher taxes on the rich. Even tax breaks for low-income families will have to wait, not to mention all the rest. And then we will see Obama start to sweat. Because the public is impatient. People want to see America change right now, this very instant. They want to see how poverty shrinks, the homeless get housing, the blacks and Hispanics become middle-class, the losses on Wall Street are erased, the strangulating mortgages disappear, the lay-offs stop and recession turns into growth. But these are miracles that even the super-charismatic Obama cannot perform. Oratory, however brilliant, will not suffice. A very frustrating era thus lies ahead, as the American idol of today becomes tomorrow's punching bag. Bookmark to del.icio.us   Never again Israel, Germany mark 70 years since the Night of the Broken Glass. Financial freefall Global financial storms threaten empire of Jewish billionaire Sheldon Adelson.   1.   Can We Make Obama A Hero Every Day? 05:38  |  Yosemite 08/11/08   2.   No We Can`t 13:03  |  Gideon Reader 08/11/08   3.   Universal Health Insurance 14:04  |  Thomas Garcia-Rubi 08/11/08   4.   You forgot about the charm factor 19:22  |  Dave 09/11/08   5.   The American Election 22:26  |  Tom 09/11/08   6.   The economy and BO`s political future 02:52  |  Political observer 10/11/08   7.   Americans delight in placing "Idols" on pedestals only to knock.. 03:22  |  PK 10/11/08   8.   #4-Dave BO has Reagan charm but Americans only liked RR.. 03:29  |  PK 10/11/08

Read & React Livni: I'm not repeating mistakes of Camp David Responses: 14 Report: U.S. secretly attacked dozens of Mideast targets since 2004 Responses: 6 Bradley Burston: Obama, and the first Arab prime minister of Israel Responses: 23 Editorial: Israel should listen to Hamas Responses: 13 Akiva Eldar: Obama needn't fear the right-wing Jewish lobby Responses: 8 More Headlines 09:24 Livni: I'm not repeating mistakes of Camp David 11:09 IDF: Army may need to respond to fresh terror alerts from Gaza 09:32 Report: U.S. secretly attacked dozens of Mideast targets since 2004 07:13 Labor figureheads to support Meretz in upcoming elections 04:05 Amira Hass / Powerless in Gaza, residents rely on the tunnels 07:23 Jerusalem of filth: Capital ranks last in livability among Israel's largest cities 08:02 Auschwitz expert: Blueprints found in Berlin not of death camp 02:12 Belgian far right leader: I am one of Israel's staunchest defenders 10:24 Merrill Lynch: Israel less vulnerable to economic crisis than U.S. and Europe 11:20 Living the Vision / 'I knew my life's goal was to try and make Israel find peace' 11:19 Airports Authority workers forced to cease strike 08:04 Restitution panel: Prime T.A. neighborhood built on Holocaust victims' land 21:25 'Anti-Semitism must never be given an opportunity in Europe again,' says German chancellor 05:41 Despite credit crunch, senior officials to enjoy big raises Previous Editions Select Day 09 nov 07 nov 06 nov 05 nov 04 nov 03 nov 02 nov 31 oct 30 oct 29 oct 28 oct 27 oct

Special Offers Advertisement Living in Israel Studying in English Click & Meet our students from all around the world Dan Boutique Jerusalem New Dan Hotel in Jerusalem Young, Fun & Distinctively Dan Book Now Online! Fattal Hotel Chain Perfectly located hotels on best resorts of Israel. Car rental in Israel Shlomo Sixt Receive $15.00 from our low rates. Dial 013 for your long-distance calls and get all your money back US CITIZENS Vote for real change. Request your ballot today! Eldan Rent a Car Israel's leading car rental company offers you a 20% discount on all online reservations Jewish Singles Personal Ads Find the love of your life on JDate.com Israel's Premier Real Estate Website www. israel-property.com Hebrew Summer courses From $39.95 Junkyard Junk a car - get free towing nationwide and a tax-deductible receipt

Home | TV | Print Edition | Diplomacy | Opinion | Arts & Leisure | Sports | Jewish World | Underground | Site rules |

Real Estate in Israel | Travel to Israel with Haaretz | Hotels Israel | Restaurants Israel | Tourist attractions Israel | Shops Israel

birthright Israel | Search engine marketing

Haaretz.com, the online edition of Haaretz Newspaper in Israel, offers real-time breaking news, opinions and analysis from Israel and the Middle East. Haaretz.com provides extensive and in-depth coverage of Israel, the Jewish World and the Middle East, including defense, diplomacy, the Arab-Israeli conflict, the peace process, Israeli politics, Jerusalem affairs, international relations, Iran, Iraq, Syria, Lebanon, the Palestinian Authority, the West Bank and the Gaza Strip, the Israeli business world and Jewish life in Israel and the Diaspora.

© Copyright  Haaretz. All rights reserved