In a talk to a Columbia University Audience Nov. 17, economist and Director of the Earth Institute Jeffrey Sachs was eager to criticize Washington over it's handling of the economic downturn. Known for offering ambitious solutions to large economic problems, such as in his book The End of Poverty, Sachs characteristically suggested solutions on how public spending should be used to expand the US economy while benefiting the rest of the world. Although he presented thoughtful ideas regarding investment in infrastructure and green technology, his cynicism toward the U.S. government's capabilities reflected doubt that any of his ideas are politically possible.

Sachs on Obama

“The progressive candidate won by saying we're going to cut taxes more... That's the shallowness of our political system.”

Obama won the presidency on an ambitious, progressive platform, but Sachs argues that as a result of proposed middle-class tax cuts and overly optimistic projections on budget savings, Obama will never have the money to enact much of his agenda. In anticipation of a troop increase in Afghanistan, he also lists the wars and the military industrial lobby as other obstacles threatening a balanced budget. Because of the slow pace at which issues are dealt with in Congress, cap-and-trade, education, and clean energy policy are currently being deferred in favor of substantive, but more visible crises like health care reform and the war in Afghanistan. While this deliberate pace of passing legislation is nothing new, Sachs predicts that the former list of issues will fall victim to both the budget and politics. His frustration with the political system is easy to empathize with, but his criticisms of the government seem less resonant when given so pessimistically. Nonetheless, he is a convincing pundit and is effectively using his independent role as an academic and poverty advocate to take a dissident stance against the Obama administration.

Creating the Next Bubble

“The right idea was the clean recovery.”

Sachs calls the stimulus plan “lousy and thrown together” and says that the government has squandered its only shot at making improvements through fiscal policy. With a far-sighted vision on how the recovery should happen, he strongly advocated the Keynesian solution of investing in infrastructure. His proposals for infrastructure address long term development of green technologies but also implementing existing technologies. Examples he listed included investing in next generation transport, such as high-speed rail and electric cars, and reclamation of wetlands. The stimulus did direct significant funding toward infrastructure, but much of it went to resuming “shovel-ready” construction programs with a focus on job creation. Though short-term job creation is a politically favorable objective, this focus on infrastructure maintenance neglects the supplementary purpose of infrastructure investment which is opening new avenues for economic growth.

The End of Poverty

Sachs used the context of the US economic and political crisis to reintroduce the topic of international aid and our responsibilities to the developing world. Having advised and represented developing countries during economic crisis, he has been a steady advocate for an increase in federal funding for international aid. He reiterated economic arguments in favor of this, but the discussion quickly reverted back to criticism over wasteful spending on the part of the US government. International aid will also be one of the casualties of the meticulous process of passing legislation, as he cited that Obama has already failed to renew federal aid funding for this year. Given the abundance of domestic priorities that come before it, Sachs predicts the availability of aid will come down to revenue. Because the conservative opposition is vehement in their criticism of spending and Democrats are reluctant to raise taxes and take on new liabilities, aid funding may remain entrenched in the political system for years. Despite the improbability of passing his entire agenda, Obama has no choice but to project optimism and hope for the best., but Sachs' vision for the future isn't as hopeful as once stated.