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1. Passed Health Care Reform: After five presidents over a century failed to create universal health insurance, signed the Affordable Care Act (2010). It will cover 32 million uninsured Americans beginning in 2014 and mandates a suite of experimental measures to cut health care cost growth, the number one cause of America’s long-term fiscal problems.
2. Passed the Stimulus: Signed $787 billion American Recovery and Reinvestment Act in 2009 to spur economic growth amid greatest recession since the Great Depression. Weeks after stimulus went into effect, unemployment claims began to subside. Twelve months later, the private sector began producing more jobs than it was losing, and it has continued to do so for twenty-three straight months, creating a total of nearly 3.7 million new private-sector jobs.
3. Passed Wall Street Reform: Signed the Dodd-Frank Wall Street Reform and Consumer Protection Act (2010) to re-regulate the financial sector after its practices caused the Great Recession. The new law tightens capital requirements on large banks and other financial institutions, requires derivatives to be sold on clearinghouses and exchanges, mandates that large banks provide “living wills” to avoid chaotic bankruptcies, limits their ability to trade with customers’ money for their own profit, and creates the Consumer Financial Protection Bureau (now headed by Richard Cordray) to crack down on abusive lending products and companies.
4. Ended the War in Iraq: Ordered all U.S. military forces out of the country. Last troops left on December 18, 2011.
5. Began Drawdown of War in Afghanistan: From a peak of 101,000 troops in June 2011, U.S. forces are now down to 91,000, with 23,000 slated to leave by the end of summer 2012. According to Secretary of Defense Leon Panetta, the combat mission there will be over by next year.
6. Eliminated Osama bin laden: In 2011, ordered special forces raid of secret compound in Abbottabad, Pakistan, in which the terrorist leader was killed and a trove of al-Qaeda documents was discovered.
7. Turned Around U.S. Auto Industry: In 2009, injected $62 billion in federal money (on top of $13.4 billion in loans from the Bush administration) into ailing GM and Chrysler in return for equity stakes and agreements for massive restructuring. Since bottoming out in 2009, the auto industry has added more than 100,000 jobs. In 2011, the Big Three automakers all gained market share for the first time in two decades. The government expects to lose $16 billion of its investment, less if the price of the GM stock it still owns increases.
8. Recapitalized Banks: In the midst of financial crisis, approved controversial Treasury Department plan to lure private capital into the country’s largest banks via “stress tests” of their balance sheets and a public-private fund to buy their “toxic” assets. Got banks back on their feet at essentially zero cost to the government.
9. Repealed “Don’t Ask, Don’t Tell”: Ended 1990s-era restriction and formalized new policy allowing gays and lesbians to serve openly in the military for the first time.
10. Toppled Moammar Gaddafi: In March 2011, joined a coalition of European and Arab governments in military action, including air power and naval blockade, against Gaddafi regime to defend Libyan civilians and support rebel troops. Gaddafi’s forty-two-year rule ended when the dictator was overthrown and killed by rebels on October 20, 2011. No American lives were lost.
11. Told Mubarak to Go: On February 1, 2011, publicly called on Egyptian President Hosni Mubarak to accept reform or step down, thus weakening the dictator’s position and putting America on the right side of the Arab Spring. Mubarak ended thirty-year rule when overthrown on February 11.
12. Reversed Bush Torture Policies: Two days after taking office, nullified Bush-era rulings that had allowed detainees in U.S. custody to undergo certain “enhanced” interrogation techniques considered inhumane under the Geneva Conventions. Also released the secret Bush legal rulings supporting the use of these techniques.
13. Improved America’s Image Abroad: With new policies, diplomacy, and rhetoric, reversed a sharp decline in world opinion toward the U.S. (and the corresponding loss of “soft power”) during the Bush years. From 2008 to 2011, favorable opinion toward the United States rose in ten of fifteen countries surveyed by the Pew Global Attitudes Project, with an average increase of 26 percent.
14. Kicked Banks Out of Federal Student Loan Program, Expanded Pell Grant Spending: As part of the 2010 health care reform bill, signed measure ending the wasteful decades-old practice of subsidizing banks to provide college loans. Starting July 2010 all students began getting their federal student loans directly from the federal government. Treasury will save $67 billion over ten years, $36 billion of which will go to expanding Pell Grants to lower-income students.
15. Created Race to the Top: With funds from stimulus, started $4.35 billion program of competitive grants to encourage and reward states for education reform.
16. Boosted Fuel Efficiency Standards: Released new fuel efficiency standards in 2011 that will nearly double the fuel economy for cars and trucks by 2025.
17. Coordinated International Response to Financial Crisis: To keep world economy out of recession in 2009 and 2010, helped secure from G-20 nations more than $500 billion for the IMF to provide lines of credit and other support to emerging market countries, which kept them liquid and avoided crises with their currencies.
18. Passed Mini Stimuli: To help families hurt by the recession and spur the economy as stimulus spending declined, signed series of measures (July 22, 2010; December 17, 2010; December 23, 2011) to extend unemployment insurance and cut payroll taxes.
19. Began Asia “Pivot”: In 2011, reoriented American military and diplomatic priorities and focus from the Middle East and Europe to the Asian-Pacific region. Executed multipronged strategy of positively engaging China while reasserting U.S. leadership in the region by increasing American military presence and crafting new commercial, diplomatic, and military alliances with neighboring countries made uncomfortable by recent Chinese behavior.
20. Increased Support for Veterans: With so many soldiers coming home from Iraq and Iran with serious physical and mental health problems, yet facing long waits for services, increased 2010 Department of Veterans Affairs budget by 16 percent and 2011 budget by 10 percent. Also signed new GI bill offering $78 billion in tuition assistance over a decade, and provided multiple tax credits to encourage businesses to hire veterans.
21. Tightened Sanctions on Iran: In effort to deter Iran’s nuclear program, signed Comprehensive Iran Sanctions, Accountability, and Divestment Act (2010) to punish firms and individuals who aid Iran’s petroleum sector. In late 2011 and early 2012, coordinated with other major Western powers to impose sanctions aimed at Iran’s banks and with Japan, South Korea, and China to shift their oil purchases away from Iran.
22. Created Conditions to Begin Closing Dirtiest Power Plants: New EPA restrictions on mercury and toxic pollution, issued in December 2011, likely to lead to the closing of between sixty-eight and 231 of the nation’s oldest and dirtiest coal-fired power plants. Estimated cost to utilities: at least $11 billion by 2016. Estimated health benefits: $59 billion to $140 billion. Will also significantly reduce carbon emissions and, with other regulations, comprises what’s been called Obama’s “stealth climate policy.”
23. Passed Credit Card Reforms: Signed the Credit Card Accountability, Responsibility, and Disclosure Act (2009), which prohibits credit card companies from raising rates without advance notification, mandates a grace period on interest rate increases, and strictly limits overdraft and other fees.
24. Eliminated Catch-22 in Pay Equality Laws: Signed Lilly Ledbetter Fair Pay Act in 2009, giving women who are paid less than men for the same work the right to sue their employers after they find out about the discrimination, even if that discrimination happened years ago. Under previous law, as interpreted by the Supreme Court in Ledbetter v. Goodyear Tire & Rubber Co., the statute of limitations on such suits ran out 180 days after the alleged discrimination occurred, even if the victims never knew about it.
25. Protected Two Liberal Seats on the U.S. Supreme Court: Nominated and obtained confirmation for Sonia Sotomayor, the first Hispanic and third woman to serve, in 2009; and Elena Kagan, the fourth woman to serve, in 2010. They replaced David Souter and John Paul Stevens, respectively.
26. Improved Food Safety System: In 2011, signed FDA Food Safety Modernization Act, which boosts the Food and Drug Administration’s budget by $1.4 billion and expands its regulatory responsibilities to include increasing number of food inspections, issuing direct food recalls, and reviewing the current food safety practices of countries importing products into America.
27. Achieved New START Treaty: Signed with Russia (2010) and won ratification in Congress (2011) of treaty that limits each country to 1,550 strategic warheads (down from 2,200) and 700 launchers (down from more than 1,400), and reestablished and strengthened a monitoring and transparency program that had lapsed in 2009, through which each country can monitor the other.
28. Expanded National Service: Signed Serve America Act in 2009, which authorized a tripling of the size of AmeriCorps. Program grew 13 percent to 85,000 members across the country by 2012, when new House GOP majority refused to appropriate more funds for further expansion.
29. Expanded Wilderness and Watershed Protection: Signed Omnibus Public Lands Management Act (2009), which designated more than 2 million acres as wilderness, created thousands of miles of recreational and historic trails, and protected more than 1,000 miles of rivers.
30. Gave the FDA Power to Regulate Tobacco: Signed the Family Smoking Prevention and Tobacco Control Act (2009). Nine years in the making and long resisted by the tobacco industry, the law mandates that tobacco manufacturers disclose all ingredients, obtain FDA approval for new tobacco products, and expand the size and prominence of cigarette warning labels, and bans the sale of misleadingly labeled “light” cigarette brands and tobacco sponsorship of entertainment events.
31. Pushed Federal Agencies to Be Green Leaders: Issued executive order in 2009 requiring all federal agencies to make plans to soften their environmental impacts by 2020. Goals include 30 percent reduction in fleet gasoline use, 26 percent boost in water efficiency, and sustainability requirements for 95 percent of all federal contracts. Because federal government is the country’s single biggest purchaser of goods and services, likely to have ripple effects throughout the economy for years to come.
32. Passed Fair Sentencing Act: Signed 2010 legislation that reduces sentencing disparity between crack versus powder cocaine possessionfrom100 to1 to 18 to1.
33. Trimmed and Reoriented Missile Defense: Cut the Reagan-era “Star Wars” missile defense budget, saving $1.4 billion in 2010, and canceled plans to station antiballistic missile systems in Poland and the Czech Republic in favor of sea-based defense plan focused on Iran and North Korea.
34. Began Post-Post-9/11 Military Builddown: After winning agreement from congressional Republicans and Democrats in summer 2011 budget deal to reduce projected defense spending by $450 billion, proposed new DoD budget this year with cuts of that size and a new national defense strategy that would shrink ground forces from 570,000 to 490,000 over the next ten years while increasing programs in intelligence gathering and cyberwarfare.
35. Let Space Shuttle Die and Killed Planned Moon Mission: Allowed the expensive ($1 billion per launch), badly designed, dangerous shuttle program to make its final launch on July 8, 2011. Cut off funding for even more bloated and problem-plagued Bush-era Constellation program to build moon base in favor of support for private-sector low-earth orbit ventures, research on new rocket technologies for long-distance manned flight missions, and unmanned space exploration, including the largest interplanetary rover ever launched, which will investigate Mars’s potential to support life.
36. Invested Heavily in Renewable Technology: As part of the 2009 stimulus, invested $90 billion, more than any previous administration, in research on smart grids, energy efficiency, electric cars, renewable electricity generation, cleaner coal, and biofuels.
37. Crafting Next-Generation School Tests: Devoted $330 million in stimulus money to pay two consortia of states and universities to create competing versions of new K-12 student performance tests based on latest psychometric research. New tests could transform the learning environment in vast majority of public school classrooms beginning in 2014.
38. Cracked Down on Bad For-Profit Colleges: In effort to fight predatory practices of some for-profit colleges, Department of Education issued “gainful employment” regulations in 2011 cutting off commercially focused schools from federal student aid funding if more than 35 percent of former students aren’t paying off their loans and/or if the average former student spends more than 12 percent of his or her total earnings servicing student loans.
39. Improved School Nutrition: In coordination with Michelle Obama, signed Healthy Hunger-Free Kids Act in 2010 mandating $4.5 billion spending boost and higher nutritional and health standards for school lunches. New rules based on the law, released in January, double the amount of fruits and vegetables and require only whole grains in food served to students.
40. Expanded Hate Crimes Protections: Signed Hate Crimes Prevention Act (2009), which expands existing hate crime protections to include crimes based on a victim’s sexual orientation, gender, or disability, in addition to race, color, religion, or national origin.
41. Avoided Scandal: As of November 2011, served longer than any president in decades without a scandal, as measured by the appearance of the word “scandal” (or lack thereof) on the front page of the Washington Post.
42. Brokered Agreement for Speedy Compensation to Victims of Gulf Oil Spill:Though lacking statutory power to compel British Petroleum to act, used moral authority of his office to convince oil company to agree in 2010 to a $20 billion fund to compensate victims of the Deepwater Horizon oil spill in the Gulf of Mexico; $6.5 billion already paid out without lawsuits. By comparison, it took nearly two decades for plaintiffs in the Exxon Valdez Alaska oil spill case to receive $1.3 billion.
43. Created Recovery.gov: Web site run by independent board of inspectors general looking for fraud and abuse in stimulus spending, provides public with detailed information on every contract funded by $787 billion American Recovery and Reinvestment Act. Thanks partly to this transparency, board has uncovered very little fraud, and Web site has become national model: “The stimulus has done more to promote transparency at almost all levels of government than any piece of legislation in recent memory,” reports Governingmagazine.
44. Pushed Broadband Coverage: Proposed and obtained in 2011 Federal Communications Commission approval for a shift of $8 billion in subsidies away from landlines and toward broadband Internet for lower-income rural families.
45. Expanded Health Coverage for Children: Signed 2009 Children’s Health Insurance Authorization Act, which allows the Children’s Health Insurance Program (CHIP) to cover health care for 4 million more children, paid for by a tax increase on tobacco products.
46. Recognized the Dangers of Carbon Dioxide: In 2009, EPA declared carbon dioxide a pollutant, allowing the agency to regulate its production.
47. Expanded Stem Cell Research: In 2009, eliminated the Bush-era restrictions on embryonic stem cell research, which shows promise in treating spinal injuries, among many other areas.
48. Provided Payment to Wronged Minority Farmers: In 2009, signed Claims Resolution Act, which provided $4.6 billion in funding for a legal settlement with black and Native American farmers who the government cheated out of loans and natural resource royalties in years past.
49. Helped South Sudan Declare Independence: Helped South Sudan Declare Independence: Appointed two envoys to Sudan and personally attended a special UN meeting on the area. Through U.S. ambassador to the United Nations Ambassador Susan Rice, helped negotiate a peaceful split in 2011.
50. Killed the F-22: In 2009, ended further purchases of Lockheed Martin single-seat, twin-engine, fighter aircraft, which cost $358 million apiece. Though the military had 187 built, the plane has never flown a single combat mission. Eliminating it saved $4 billion.
Paul Glastris, Ryan Cooper, and Siyu Hu collaborated on this article. Glastris is the editor in chief of the Washington Monthly. Cooper and Hu are interns at the magazine.
March 23, 2010: President Obama signs the Patient Protection and Affordable Care Act, a historic piece of legislation that will expand health insurance ...
When it comes to Barack Obama, I've always been out of sync. Back in 2008, when many liberals were wildly enthusiastic about his candidacy and his press was strongly favorable, I was skeptical. I worried that he was naive, that his talk about transcending the political divide was a dangerous illusion given the unyielding extremism of the modern American right. Furthermore, it seemed clear to me that, far from being the transformational figure his supporters imagined, he was rather conventional-minded: Even before taking office, he showed signs of paying far too much attention to what some of us would later take to calling Very Serious People, people who regarded cutting budget deficits and a willingness to slash Social Security as the very essence of political virtue.
And I wasn't wrong. Obama was indeed naive: He faced scorched-earth Republican opposition from Day One, and it took him years to start dealing with that opposition realistically. Furthermore, he came perilously close to doing terrible things to the U.S. safety net in pursuit of a budget Grand Bargain; we were saved from significant cuts to Social Security and a rise in the Medicare age only by Republican greed, the GOP's unwillingness to make even token concessions.
But now the shoe is on the other foot: Obama faces trash talk left, right and center – literally – and doesn't deserve it. Despite bitter opposition, despite having come close to self-inflicted disaster, Obama has emerged as one of the most consequential and, yes, successful presidents in American history. His health reform is imperfect but still a huge step forward – and it's working better than anyone expected. Financial reform fell far short of what should have happened, but it's much more effective than you'd think. Economic management has been half-crippled by Republican obstruction, but has nonetheless been much better than in other advanced countries. And environmental policy is starting to look like it could be a major legacy.
I'll go through those achievements shortly. First, however, let's take a moment to talk about the current wave of Obama-bashing. All Obama-bashing can be divided into three types. One, a constant of his time in office, is the onslaught from the right, which has never stopped portraying him as an Islamic atheist Marxist Kenyan. Nothing has changed on that front, and nothing will.
Sean Gallup/Getty
There's a different story on the left, where you now find a significant number of critics decrying Obama as, to quote Cornel West, someone who ''posed as a progressive and turned out to be counterfeit.'' They're outraged that Wall Street hasn't been punished, that income inequality remains so high, that ''neoliberal'' economic policies are still in place. All of this seems to rest on the belief that if only Obama had put his eloquence behind a radical economic agenda, he could somehow have gotten that agenda past all the political barriers that have con- strained even his much more modest efforts. It's hard to take such claims seriously.
Finally, there's the constant belittling of Obama from mainstream pundits and talking heads. Turn on cable news (although I wouldn't advise it) and you'll hear endless talk about a rudderless, stalled administration, maybe even about a failed presidency. Such talk is often buttressed by polls showing that Obama does, indeed, have an approval rating that is very low by historical standards.
But this bashing is misguided even in its own terms – and in any case, it's focused on the wrong thing.
Yes, Obama has a low approval rating compared with earlier presidents. But there are a number of reasons to believe that presidential approval doesn't mean the same thing that it used to: There is much more party-sorting (in which Republicans never, ever have a good word for a Democratic president, and vice versa), the public is negative on politicians in general, and so on. Obviously the midterm election hasn't happened yet, but in a year when Republicans have a huge structural advantage – Democrats are defending a disproportionate number of Senate seats in deep-red states – most analyses suggest that control of the Senate is in doubt, with Democrats doing considerably better than they were supposed to. This isn't what you'd expect to see if a failing president were dragging his party down.
More important, however, polls – or even elections – are not the measure of a president. High office shouldn't be about putting points on the electoral scoreboard, it should be about changing the country for the better. Has Obama done that? Do his achievements look likely to endure? The answer to both questions is yes.
HEALTH CARE
When Obama signed the Affordable Care Act, an excited Joe Biden whispered audibly, ''This is a big fucking deal!'' He was right.
The enactment and implementation of the Affordable Care Act, a.k.a. Obamacare, has been a perils-of-Pauline experience. When an upset in the special election to replace Ted Kennedy cost Democrats their 60-vote Senate majority, health reform had to be rescued with fancy legislative footwork. Then it survived a Supreme Court challenge only thanks to a surprise display of conscience by John Roberts, who nonetheless opened a loophole that has allowed Republican-controlled states to deny coverage to millions of Americans. Then technical difficulties with the HealthCare.gov website seemed to threaten disaster. But here we are, most of the way through the first full year of reform's implementation, and it's working better than even the optimists expected.
We won't have the full data on 2014 until next year's census report, but multiple independent surveys show a sharp drop in the number of Americans without health insurance, probably around 10 million, a number certain to grow greatly over the next two years as more people realize that the program is available and penalties for failure to sign up increase.
It's true that the Affordable Care Act will still leave millions of people in America uninsured. For one thing, it was never intended to cover undocumented immigrants, who are counted in standard measures of the uninsured. Furthermore, millions of low-income Americans will slip into the loophole Roberts created: They were supposed to be covered by a federally funded expansion of Medicaid, but some states are blocking that expansion out of sheer spite. Finally, unlike Social Security and Medicare, for which almost everyone is automatically eligible, Obamacare requires beneficiaries to prove their eligibility for Medicaid or choose and then pay for a subsidized private plan. Inevitably, some people will fall through the cracks.
Still, Obamacare means a huge improvement in the quality of life for tens of millions of Americans – not just better care, but greater financial security. And even those who were already insured have gained both security and freedom, because they now have a guarantee of coverage if they lose or change jobs.
What about the costs? Here, too, the news is better than anyone expected. In 2014, premiums on the insurance policies offered through the Obamacare exchanges were well below those originally projected by the Congressional Budget Office, and the available data indicates a mix of modest increases and actual reductions for 2015 – which is very good in a sector where premiums normally increase five percent or more each year. More broadly, overall health spending has slowed substantially, with the cost-control features of the ACA probably deserving some of the credit.
In other words, health reform is looking like a major policy success story. It's a program that is coming in ahead of schedule – and below budget – costing less, and doing more to reduce overall health costs than even its supporters predicted.
Of course, this success story makes nonsense of right-wing predictions of catastrophe. Beyond that, the good news on health costs refutes conservative orthodoxy. It's a fixed idea on the right, sometimes echoed by ''centrist'' commentators, that the only way to limit health costs is to dismantle guarantees of adequate care – for example, that the only way to control Medicare costs is to replace Medicare as we know it, a program that covers major medical expenditures, with vouchers that may or may not be enough to buy adequate insurance. But what we're actually seeing is what looks like significant cost control via a laundry list of small changes to how we pay for care, with the basic guarantee of adequate coverage not only intact but widened to include Americans of all ages.
It's worth pointing out that some criticisms of Obamacare from the left are also looking foolish. Obamacare is a system partly run through private insurance companies (although expansion of Medicaid is also a very important piece). And some on the left were outraged, arguing that the program would do more to raise profits in the medical-industrial complex than it would to protect American families.
You can still argue that single-payer would have covered more people at lower cost – in fact, I would. But that option wasn't on the table; only a system that appeased insurers and reassured the public that not too much would change was politically feasible. And it's working reasonably well: Competition among insurers who can no longer deny insurance to those who need it most is turning out to be pretty effective. This isn't the health care system you would have designed from scratch, or if you could ignore special-interest politics, but it's doing the job.
And this big improvement in American society is almost surely here to stay. The conservative health care nightmare – the one that led Republicans to go all-out against Bill Clinton's health plans in 1993 and Obamacare more recently – is that once health care for everyone, or almost everyone, has been put in place, it will be very hard to undo, because too many voters would have a stake in the system. That's exactly what is happening. Republicans are still going through the motions of attacking Obamacare, but the passion is gone. They're even offering mealymouthed assurances that people won't lose their new benefits. By the time Obama leaves office, there will be tens of millions of Americans who have benefited directly from health reform – and that will make it almost impossible to reverse. Health reform has made America a different, better place.
Susan Walsh/AP
FINANCIAL REFORM
Let's be clear: The financial crisis should have been followed by a drastic crackdown on Wall Street abuses, and it wasn't. No important figures have gone to jail; bad banks and other financial institutions, from Citigroup to Goldman, were bailed out with few strings attached; and there has been nothing like the wholesale restructuring and reining in of finance that took place in the 1930s. Obama bears a considerable part of the blame for this disappointing response. It was his Treasury secretary and his attorney general who chose to treat finance with kid gloves.
It's easy, however, to take this disappointment too far. You often hear Dodd- Frank, the financial-reform bill that Obama signed into law in 2010, dismissed as toothless and meaningless. It isn't. It may not prevent the next financial crisis, but there's a good chance that it will at least make future crises less severe and easier to deal with.
Dodd-Frank is a complicated piece of legislation, but let me single out three really important sections.
First, the law gives a special council the ability to designate ''systemically important financial institutions'' (SIFIs) – that is, institutions that could create a crisis if they were to fail – and place such institutions under extra scrutiny and regulation of things like the amount of capital they are required to maintain to cover possible losses. This provision has been derided as ineffectual or worse – during the 2012 presidential campaign, Mitt Romney claimed that by announcing that some firms were SIFIs, the government was effectively guaranteeing that they would be bailed out, which he called ''the biggest kiss that's been given to New York banks I've ever seen.''
But it's easy to prove that this is nonsense: Just look at how institutions behave when they're designated as SIFIs. Are they pleased, because they're now guaranteed? Not a chance. Instead, they're furious over the extra regulation, and in some cases fight bitterly to avoid being placed on the list. Right now, for example, MetLife is making an all-out effort to be kept off the SIFI list; this effort demonstrates that we're talking about real regulation here, and that financial interests don't like it.
Another key provision in Dodd-Frank is ''orderly liquidation authority,'' which gives the government the legal right to seize complex financial institutions in a crisis. This is a bigger deal than you might think. We have a well-established procedure for seizing ordinary banks that get in trouble and putting them into receivership; in fact, it happens all the time. But what do you do when something like Citigroup is on the edge, and its failure might have devastating consequences? Back in 2009, Joseph Stiglitz and yours truly, among others, wanted to temporarily nationalize one or two major financial players, for the same reasons the FDIC takes over failing banks, to keep the institutions running but avoid bailing out stockholders and management. We got a chance to make that case directly to the president. But we lost the argument, and one key reason was Treasury's claim that it lacked the necessary legal authority. I still think it could have found a way, but in any case that won't be an issue next time.
A third piece of Dodd-Frank is the Consumer Financial Protection Bureau. That's Elizabeth Warren's brainchild, an agency dedicated to protecting Americans against the predatory lending that has pushed so many into financial distress, and played an important role in the crisis. Warren's idea was that such a stand-alone agency would more effectively protect the public than agencies that were supposed to protect consumers, but saw their main job as propping up banks. And by all accounts the new agency is in fact doing much more to crack down on predatory practices than anything we used to see.
There's much more in the financial reform, including a number of pieces we don't have enough information to evaluate yet. But there's enough evidence even now to say that there's a reason Wall Street – which used to give an approximately equal share of money to both parties but now overwhelmingly supports Republicans – tried so hard to kill financial reform, and is still trying to emasculate Dodd-Frank. This may not be the full overhaul of finance we should have had, and it's not as major as health reform. But it's a lot better than nothing.
THE ECONOMY
Barack Obama might not have been elected president without the 2008 financial crisis; he certainly wouldn't have had the House majority and the brief filibuster-proof Senate majority that made health reform possible. So it's very disappointing that six years into his presidency, the U.S. economy is still a long way from being fully recovered.
Before we ask why, however, we should note that things could have been worse. In fact, in other times and places they have been worse. Make no mistake about it – the devastation wrought by the financial crisis was terrible, with real income falling 5.5 percent. But that's actually not as bad as the ''typical'' experience after financial crises: Even in advanced countries, the median post-crisis decline in per- capita real GDP is seven percent. Recovery has been slow: It took almost six years for the United States to regain pre-crisis average income. But that was actually a bit faster than the historical average.
Or compare our performance with that of the European Union. Unemployment in America rose to a horrifying 10 percent in 2009, but it has come down sharply in the past few years. It's true that some of the apparent improvement probably reflects discouraged workers dropping out, but there has been substantial real progress. Meanwhile, Europe has had barely any job recovery at all, and unemployment is still in double digits. Compared with our counterparts across the Atlantic, we haven't done too badly.
Did Obama's policies contribute to this less-awful performance? Yes, without question. You'd never know it listening to the talking heads, but there's overwhelming consensus among economists that the Obama stimulus plan helped mitigate the worst of the slump. For example, when a panel of economic experts was asked whether the U.S. unemployment rate was lower at the end of 2010 than it would have been without the stimulus, 82 percent said yes, only two percent said no.
Still, couldn't the U.S. economy have done a lot better? Of course. The original stimulus should have been both bigger and longer. And after Republicans won the House in 2010, U.S. policy took a sharp turn in the wrong direction. Not only did the stimulus fade out, but sequestration led to further steep cuts in federal spending, exactly the wrong thing to do in a still-depressed economy.
We can argue about how much Obama could have altered this literally depressing turn of events. He could have pushed for a larger, more extended stimulus, perhaps with provisions for extra aid that would have kicked in if unemployment stayed high. (This isn't 20-20 hindsight, because a number of economists, myself included, pleaded for more aggressive measures from the beginning.) He arguably let Republicans blackmail him over the debt ceiling in 2011, leading to the sequester. But this is all kind of iffy.
The bottom line on Obama's economic policy should be that what he did helped the economy, and that while enormous economic and human damage has taken place on his watch, the United States coped with the financial crisis better than most countries facing comparable crises have managed. He should have done more and better, but the narrative that portrays his policies as a simple failure is all wrong.
While America remains an incredibly unequal society, and we haven't seen anything like the New Deal's efforts to narrow income gaps, Obama has done more to limit inequality than he gets credit for. The rich are paying higher taxes, thanks to the partial expiration of the Bush tax cuts and the special taxes on high incomes that help pay for Obamacare; the Congressional Budget Office estimates the average tax rate of the top one percent at 33.6 percent in 2013, up from 28.1 percent in 2008. Meanwhile, the financial aid in Obamacare – expanded Medicaid, subsidies to help lower-income households pay insurance premiums – goes disproportionately to less-well-off Americans. When conservatives accuse Obama of redistributing income, they're not completely wrong – and liberals should give him credit.
THE ENVIRONMENT
In 2009, it looked, briefly, as if we might be about to get real on the issue of climate change. A fairly comprehensive bill establishing a cap-and-trade system to limit greenhouse-gas emissions actually passed the House, and visions of global action danced like sugarplums in environmentalists' heads. But the legislation stalled in the Senate, and Republican victory in the 2010 midterms put an end to that fantasy. Ever since, the only way forward has been through executive action based on existing legislation, which is a poor substitute for the new laws we need.
But as with financial reform, acknowledging the inadequacy of what has been done doesn't mean that nothing has been achieved. Saying that Obama has been the best environmental president in a long time is actually faint praise, since George W. Bush was terrible and Bill Clinton didn't get much done. Still, it's true, and there's reason to hope for a lot more over the next two years.
Doug Mills/The New York Times
First of all, there has been much more progress on the use of renewable energy than most people realize. The share of U.S. energy provided by wind and solar has grown dramatically since Obama took office. True, it's still only a small fraction of the total, and some of the growth in renewables reflects technological progress, especially in solar panels, that would have happened whoever was in office. But federal policies, including loan guarantees and tax credits, have played an important role.
Nor is it just about renewables; Obama has also taken big steps on energy conservation, especially via fuel-efficiency standards, that have flown, somewhat mysteriously, under the radar. And it's not just cars. In 2011, the administration announced the first-ever fuel-efficiency standards for medium and heavy vehicles, and in February it announced that these standards would get even tougher for models sold after 2018. As a way to curb green house-gas emissions, these actions, taken together, are comparable in importance to proposed action on power plants.
Which brings us to the latest initiative. Because there's no chance of getting climate-change legislation through Congress for the foreseeable future, Obama has turned to the EPA's existing power to regulate pollution – power that the Supreme Court has affirmed extends to emissions of carbon dioxide and other greenhouse gases. And this past summer, the EPA announced proposed rules that would require a large reduction over time in such emissions from power plants. You might say that such plants are only a piece of the problem, but they're a large piece – CO2 from coal-burning power plants is in fact a big part of the problem, so if the EPA goes through with anything like the proposed rule, it will be a major step. Again, not nearly enough, and we'll have to do a lot more soon, or face civilization-threatening disaster. But what Obama has done is far from trivial.
NATIONAL SECURITY
So far, i've been talking about Obama's positive achievements, which have been much bigger than his critics understand. I do, however, need to address one area that has left some early Obama supporters bitterly disappointed: his record on national security policy. Let's face it – many of his original enthusiasts favored him so strongly over Hillary Clinton because she supported the Iraq War and he didn't. They hoped he would hold the people who took us to war on false pretenses accountable, that he would transform American foreign policy, and that he would drastically curb the reach of the national security state.
None of that happened. Obama's team, as far as we can tell, never even considered going after the deceptions that took us to Baghdad, perhaps because they believed that this would play very badly at a time of financial crisis. On overall foreign policy, Obama has been essentially a normal post-Vietnam president, reluctant to commit U.S. ground troops and eager to extract them from ongoing commitments, but quite willing to bomb people considered threatening to U.S. interests. And he has defended the prerogatives of the NSA and the surveillance state in general.
Could and should he have been different? The truth is that I have no special expertise here; as an ordinary concerned citizen, I worry about the precedent of allowing what amount to war crimes to go not just unpunished but uninvestigated, even while appreciating that a modern version of the 1970s Church committee hearings on CIA abuses might well have been a political disaster, and undermined the policy achievements I've tried to highlight. What I would say is that even if Obama is just an ordinary president on national security issues, that's a huge improvement over what came before and what we would have had if John McCain or Mitt Romney had won. It's hard to get excited about a policy of not going to war gratuitously, but it's a big deal compared with the alternative.
SOCIAL CHANGE
In 2004, social issues, along with national security, were cudgels the right used to bludgeon liberals – I like to say that Bush won re-election by posing as America's defender against gay married terrorists. Ten years later, and the scene is transformed: Democrats have turned these social issues – especially women's rights – against Republicans; gay marriage has been widely legalized with approval or at least indifference from the wider public. We have, in a remarkably short stretch of time, become a notably more tolerant, open-minded nation.
Barack Obama has been more a follower than a leader on these issues. But at least he has been willing to follow the country's new open-mindedness. We shouldn't take this for granted. Before the Obama presidency, Democrats were in a kind of reflexive cringe on social issues, acting as if the religious right had far more power than it really does and ignoring the growing constituency on the other side. It's easy to imagine that if someone else had been president these past six years, Democrats would still be cringing as if it were 2004. Thankfully, they aren't. And the end of the cringe also, I'd argue, helped empower them to seek real change on substantive issues from health reform to the environment. Which brings me back to domestic issues.
As you can see, there's a theme running through each of the areas of domestic policy I've covered. In each case, Obama delivered less than his supporters wanted, less than the country arguably deserved, but more than his current detractors acknowledge. The extent of his partial success ranges from the pretty good to the not-so-bad to the ugly. Health reform looks pretty good, especially in historical perspective – remember, even Social Security, in its original FDR version, only covered around half the workforce. Financial reform is, I'd argue, not so bad – it's not the second coming of Glass-Steagall, but there's a lot more protection against runaway finance than anyone except angry Wall Streeters seems to realize. Economic policy wasn't enough to avoid a very ugly period of high unemployment, but Obama did at least mitigate the worst.
And as far as climate policy goes, there's reason for hope, but we'll have to see.
Am I damning with faint praise? Not at all. This is what a successful presidency looks like. No president gets to do everything his supporters expected him to. FDR left behind a reformed nation, but one in which the wealthy retained a lot of power and privilege. On the other side, for all his anti-government rhetoric, Reagan left the core institutions of the New Deal and the Great Society in place. I don't care about the fact that Obama hasn't lived up to the golden dreams of 2008, and I care even less about his approval rating. I do care that he has, when all is said and done, achieved a lot. That is, as Joe Biden didn't quite say, a big deal.
