Salem Rotary - The Spoke - Archive (Jan 13, 2009)

Congressman Tierney began his presentation by noting that President-elect Obama is facing the most challenging times of any incoming president since FDR. Unemployment is the highest it has been for 16 years and the Federal Reserve has reduced its interest rate to almost zero – meaning that there is little the Fed can do vis-à-vis its monetary policy to influence the economy at this point.

The way that we can get back to a successful economy is for there to be some balance in the system. Some regulation is required, and all economists agree – from liberals to conservatives – that a massive public investment is needed to enable the economy to recover.

We need to make public investments that will have the greatest impact on the economy. John believes that these investments should include:

· Food stamps – this program generates the greatest return on investment of any public program – creating $1.73 of economic impact for each dollar of subsidy.

· Extending unemployment benefits – this also generates a substantial return on investment - $1.64 for every dollar invested.

· Long-term growth investments – this includes public infrastructure projects, internet improvements, and upgrades to the power grid.

· Aid to states – we can’t bleed jobs while creating jobs, and the states need money so that firefighters, police and teachers aren’t laid off while we’re trying to recover.

· Schools and universities – we need cutting edge research facilities in order to ensure that our economy will remain strong once we have recovered.

It appears that the recovery package being proposed by the Obama administration will be between $750 to $800 billion, and economists fear that this may not be enough. There is a real possibility that in this downturn we could lose 10% of our gross domestic product – and that equals about $1.4 trillion.

Obama will be proposing tax breaks as part of the stimulus, and John doesn’t think this is wise at this point. Tax breaks result in a negative return on the dollar, but it appears that there still will be around $150 billion of tax cuts proposed as part of this bill.

What is important is that we begin doing something quickly. If we do nothing, then we’ll very soon be facing 10% or higher unemployment.

As part of this process, it will be important to remember that job training and education are going to be very important, since we need folks ready to take the jobs that are being created.

Underlying all of this will be the need for greater accountability. This can be seen right now with how banks have used the first allocation of TARP funds – they aren’t lending those funds out and they are not dealing with the mortgage mess.

Congressman Tierney concluded his remarks by saying that we need to communicate and be willing to experiment. We will build on the stuff that works and pull the plug on programs that don’t.

A lively question and answer period followed.

Events to be aware of -- Save the Dates!!

*Special Announcement* President-Elect Obama's Historic Inauguration will be shown on the Big Screen at the Hawthorne Hotel. This will be the program and in lieu of the scheduled program.

ROTARY DISTRICT 7930 WORLD PEACE AND UNDERSTANDING DINNER- February 5, 2009 at the Danversport Yacht Club-161 Elliot Street Route 62, Danvers, MA 01923.

6:00pm Fellowship

7:00pm Dinner

The cost is $50.00 per person. Please see President Dave if you wish to attend.

Please visit the calendar section of our web site

for additional important dates.

And now a few announcements....

President Dave reminded members that there would be a board meeting on January 20^th.

The Marblehead Harbor chapter will meet at the Masonic Hall on Pleasant Street on February 10^th, 17^th, and 24^th. On February 3^rd, the chapter will have a special breakfast meeting with students from the Metco program and will not have a regular meeting.

The Beverly Club has thrown down the gauntlet again and challenged us to a Biggest Loser competition. By show of hands, it appeared there was sufficient interest to take them on.

The Auction will be on March 6^th and flyers were distributed asking members to donate items and take out ads in the program book.

The District Conference will be on May 1^st and 2^nd in Salem.

President Dave ended the meeting with the Quote of the Week: “Everybody can be great, because everybody can serve. You don’t have to have a college degree to serve. You don’t have to make your subject and verb agree to serve… You only need a heart full of grace, a soul generated by love, and you can be that servant.” - Martin Luther King, Jr.

Quote of the Week:

Stumpers

This week's stumper: Where will this year's Rotary Convention be held?

Last week's stumper:

On Sunday evening what lunar event will occur, which only occurs once a year?

Answer to last week's stumper:

The moon was the closest to the earth that it would be all year.

Happy Birthday to: ......

Please email all announcements to be added to the Spoke and/or feedback to salem_rotary@yahoo.com by Noon on Wednesday. Also, feel free to contact any of the committee members listed below.

Committee Chair: Brenda Smith

Editors: Brenda Smith

Photos: John Quinn (Jay Cue), Trip Mason and File

Graphics and Photo Editing: Rich Eisner

Members: Denise Flynn, Jim Haskell and Sandy Heaphy