CapitalistMarks

Obama finally gets it right. Really.

Posted on 02. Mar, 2010 by scott in economic daydreaming

As I listened today to President Obama’s speech at Savannah Tech I became more and more enthusiastic.  The new Home star program that he explained there appears to be a real ’swing for the fence’ home run.

I like it.  The home construction industry will like it.  Home Depot and Lowes (mentioned in the speech) are really going to like it.  Local building supply retailers are going to like it.  Most importantly the American home owner is going to like it–a lot I suspect.

Here are some of the items he spoke about:

Homeowners are going to be given an incentive to make their most important possession (usually) more energy efficient with a ‘rebate’ of up to $3,000.  The rebate will be calculated by giving back 50% of the cost of applicable ‘raw materials’ needed to accomplish the goal.  The program is tilted towards things like windows, doors, insulation, roofing and such.

All of that is good enough, but Obama has shown his true potential here with the  way he is going to handle the details.  And, in this case the approach is unique, vary creative and a major step in simplifying the process.

Let me say here that I used the old program last year to get a $1300 tax credit for buying new highly insulated windows . . . but I had to search carefully for the right ones, get all kinds of details on efficiency, keep records of the entire project, calculate only the actual window costs and then apply those to my taxes to get the credit some 8 months after the project started.  Yechh!

But this new program is a giant leap forward in government thinking and execution.  It helps the consumer, it helps the construction industry, small business, local contractors (all hurting in this recession) and big box and local home suppliers alike.

The rebate applies to things like roofing, insulation, windows and doors–all things that are usually made in the good ‘ol USA — oh yeah, baby.  Those things are all going to be installed by local contractors and sold by local stores.  The program is actually going to create jobs, save consumers $ over the long term and short term, and stimulate the economy (get us consumers to spend).

But, the greatest and most unique part of the program (and don’t ask me how the government is going to do this ) is that you and I, if we chose to improve our home’s efficiency will get the ‘rebate’ right at the cash register.  No waiting.

Now, that is thinking Mr. President.   You’ve made this program appealing and easy.  That doesn’t sound like something government would typically create.

So I congratulate you President Obama.  You are finally showing that you have the capacity to live up to your ‘hype’ and push change that is beneficial all the way around.  I just wish that this kind of focus had been forthcoming earlier in the recession.  Think of what the $758 billion stimulus could have accomplished if this kind of program had been used and multiplied by 10 fold.

Fantastic.  Private sector type thinking goes a long way to making me, and a few hundred million others, believe we just might be able to improve our trust in government and stimulate our confidence . . . 70% of the U.S. economy just got a little more positive in their outlook.

Great job Mr. President.  Hoorah!

Tags: consumer confidence, energy efficient homes, energy rebate, home star, job stimulus, President Obama