Obama does have a few good economic advisers, the best in my opinion being Alan Blinder. Blinder's cash for clunkers program creates an economic stimulus targeted at the poor and gives lie to those that argue the government can do no good.
The plan calls for the government to purchase older vehicles that emit large amounts of pollution and get poor gas mileage to be purchased. The cut off is generally 7 years, but the monsters that we are talking about may be from the 1970s or earlier. The government offers something like 2x Kelly Blue Book (The standard American guide to used car values, available online no less.)
I think that coupled with a government contract with the big three (Ford, Chrysler, GM) to purchase at least half the line production of a stripped down no frills fuel efficient vehicle that offered the bare minimum, that you could both save the US auto industry, cut US oil consumption and greenhouse gas emissions, all while creating a recurring cash stimulus into the hands of people who will actually spend the money. Demand creation, not trickle upon economics.
And it doesn't have to stop there. The greatest limitation to low income individuals trying to justify the capital expense of an energy saving feature is access to capital. A no interest loan allowing low income individuals to finance the long term energy cost savings would create a tremendous economic stimulus. These are folks who will spend the money.
This idea isn't unheard of. Spain has something similar called Plan Renovable that they put into place in the 1990s. I'd like to get more info on it, but I've hit a wall searching on the internet. And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
