Obama adjusts to new priorities

Inter Lake editorial

So much for change when it comes to Barack Obamas announcement of Cabinet positions to be filled by a whos-who list of former Clinton administration officials, including the likelihood of Hillary Clinton herself being named secretary of state.

The country has seen this crew before, and its actually understandable why Obama turned to them: After a slim political career, he has yet to build his own entourage of advisers, so he had to seek out Democratic experience in Washington where he could find it.

The good news is that 0bama appears to be building a competent, centrist and pragmatic economic team that includes Lawrence Summers as the director of the National Economic Council and Christina Romer as head of the presidents Council of Economic Advisers.

Big questions remain as to how far the Obama team will go in terms of government spending, regulating and tax increases. Conservative pundits consider Summers and Romer as the most likely figures to urge restraint in tax policy with a recognition that tax increases would amount to economic anthrax under current circumstances.

Its encouraging to see signs that the Obama campaign agenda is being adjusted to recognize economic realities that are in many ways unprecedented, with hints from the president-elect and his surrogates that planned tax increases may at least be delayed. And it is encouraging to see that Obama is acting swiftly in announcing appointments and speaking frequently about his economic agenda. His actions and statements have rightly overshadowed President Bush in recent days, serving to calm jittery markets and investors who are uncertain about the future.

But again, big questions remain. Obama on Monday discussed his intention to develop an economic stimulus package that will apparently be concentrated on generating jobs rather than bailouts.

We are going to do whats required to jolt this economy back into shape, Obama said, declining to offer specifics.

This may be cause for concern if whats required by Team Obama is pushing the federal government into Depression-era work programs that mainly grow bureaucracies that are already too big. Obama should instead be doing everything he can to spur private sector investment, growth and job creation.

It remains to be seen if he is truly headed in that direction.