Main St. vs. Wall St.: Not so clear terms.

Most media outlets attempt to boil down complex issues into short, concise turn of phrase. Like in the instance of Main Street versus Wall Street, the big media outlets like to latch onto a consensual vocabulary. Main St. vs. Wall St. is also a convenient dichotomy which suggests a struggle between big business and people, where Obama is for Main St. and Bush supports Wall St. Though such a strong distinction between the current presidential administration and the incoming administration may not exist. The majority of those who campaigned for Obama and Main St. may not see such a progressive plan put into place by their president elect. Certainly while Bush is in power, the US will get a big dose of what support for Wall St. looks like but Obama might not look much different.

The willingness of conservatives and trickle down economists to throw money at banks and business is disturbing. The old yarn that Democrats throw money at failing government programs seems ridiculous astride big business bailouts. Banks accomplished nothing with the financial bailout. The money they received simply went onto the balance sheets to bolster each banks' performance, but did little to free up credit. And TARP enforced little oversight as to how the funds are used (see GAO report).

Bush's administration did attempt to lend a hand to Main St. in an extension of unemployment benefits and increased mortgage relief. However, these are token efforts compared to Bush's main focus. Banks and now US automakers will see additional billions of dollars. Automakers will have to prostrate much more than the banks, but in the end will receive their own bailout.

Robert Scheer pointed out in the KCRW podcast (Left, Right, Center) that the way to aid our failing economy is to increase financial assistance to states (Main St.). Public works projects and government assistance proved invaluable after the Depression by providing jobs and (re)building the US financial infrastructure, from the bottom up. Similarly, Scheer suggested that state financial assistance ensures state employees a stable job. Most states face huge budget deficits that will only result in cuts, both at the state and town level (Main St.). By assisting the states the federal government saves millions of localized jobs, such as police officers, rescue service people, teachers, etc. Unlike businesses who simply squirrel away financial aid, states are obligated to support its own infrastructure.

Obama seems to flirt with the idea of job creation through public works projects. The president elect promises to create 2.5 million jobs whose purpose is to maintain and imporve the US infrastructure. Though Obama's measures may mean more state aid his website only speaks to improving roads, bridges and school reconstruction. The president-elect also intends to increase small business investment, which favors Main St. Even so, Obama's commitment to Main St. will remain vague until he is sworn in. President-elect Obama would be wise to consider a more progressive plan than he has already announced.