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Wednesday, August 10, 2011

How Obama Is Neutralizing the Left and Tilting Rightward

AlterNet.org

ECONOMY
Obama is a willful player in an epic drama of faux-politics.

Political news travels slowly, and in my casual observation progressive Europeans have held on to the myth of Barack Obama as a good man much longer than most progressive Americans did. How could a young black American from Chicago and Harvard be otherwise?

Over here reality has been evident for a while, thanks to the President's pattern of giving way to banks, lobbies, Republicans and right-wing extremists. Whether your prime interest is housing, health care, peace, justice, jobs or climate change, if you are an activist in America you have known for a long time that this President is not your friend.

Still, even on these shores disillusion often took a mildly forgiving form. The President was a “disappointment.” He was weak. He had “bad negotiating skills.” He had a tendency to “deal with hostage-takers,” to “surrender.” All of this fed the image of a man with a noble spirit, a good heart, the best intentions, but trapped by limited ability and the relentless and reckless determination of his foes.

Obama is no progressive

The debt deal will make things clear. The President is not a progressive – he is not what Americans still call a “liberal.” He is a willful player in an epic drama of faux-politics, an operative for the money power, whose job is to neutralize the left with fear and distraction and then to pivot rightward and deliver a conservative result.

What Barack Obama got from the debt deal was exactly what his sponsors have wanted: a long-term lock-in of domestic spending cuts, and a path toward severe cuts in the core New Deal and Great Society insurance programs – Social Security, Medicare and Medicaid. And, of course, no tax increases at all.

To see the arc of political strategy, recall that from the beginning Obama handed economic policy to retainers recruited from the stables of Robert Rubin. From the beginning, he touted “fiscal responsibility” and played up the (economically non-existent) “problem” of the budget deficit. From the beginning his team sabotaged economic recovery with optimistic forecasts and inadequate programs – in the clear interest of protecting the banking system from reform.

As the presidency moved along, false claims of economic recovery supported a transition toward obsessive focus on debt and deficits, validated by a federal commission and constantly reinforced by a Washington propaganda chorus funded by Peter G. Peterson, for many decades a billionaire campaigner against Social Security and Medicare.

Debt ceiling a pseudo-crisis

But it wasn't enough. Even with the Republican victory in the 2010 mid-terms there wasn't the political will-power simply to pass the cuts and make them stick. For it wasn't sufficient just to pass them: politicians need cover when they do ugly things.

They need an excuse, something that will offer protection from the anger of the victims, or more precisely from other politicians who might exploit that anger. In the well-practiced manner of organized crime, blood needs to be on everyone's hands. That way, no one can defect; no one can turn states' evidence and safely get away with blaming the others.

The debt-ceiling pseudo-crisis created the necessary panic.
The debt ceiling is a unique American law – no other country has one – a little travesty of democratic bad faith. It was first enacted in 1917, to allow congressmen to hoodwink the rubes back home even as they voted for a large issue of Liberty Bonds to finance the Great War.

It has been a vehicle for posturing ever since – but that it would be raised has never been in doubt. (Even this time the markets never showed the slightest worry.) It became a vehicle for blackmail because it was convenient. It was convenient, because Obama failed to insist it be his price for agreeing to extend the Bush tax cuts last December. Whether that omission was accidental or calculated at the time is, for the moment, unknown.

Obama's neglected options

Even as “crisis” loomed, the President had powerful options. The Constitution of the United States flatly forbids default on debt or any other public obligation. The President could have simply asserted his duty and refused to negotiate.

Even more cleverly, he could – under a quirk of existing law – have turned drama to farce by minting a large platinum coin – say for a trillion dollars – and using that to buy back public debt held by the Federal Reserve, so that the debt ceiling would never have been breached. (There would have been an uproar but no other economic effect.)

These options were rejected or not considered at all. From which, one has to conclude that the President really did want a big budget-cutting deal. He just wanted – like any politician – the appearance of being bullied into it.

So now the die is cast. Practically nothing to address any real economic problem can now get done. Actual austerity will come slowly – the cuts are not abrupt and some may yet be blocked – but unless there is a radical change of events or mood it will come. Meanwhile as the economy stalls and despair deepens, the deficits and debt will continue to climb.

Short presidencies

The deficit lobbies are shifting: their next step will be to raise doubts about the plan's credibility and about Congress's will to enforce it. They will then make the self-protective assertion that still stronger steps are needed. European observers of Greek/Irish/ Portuguese/ British/Spanish and Italian politics – not to mention Latvia or Hungary – will find all of this familiar.

For European observers, one key to understanding how such things can happen in America is to remember that our presidencies are short. The professors who joined Obama for his opening act have already gone home. The advisers who remain face dreary futures in think-tanks funded by the likes of Michael Milken, our premier financial ex-felon.

Maybe, if they are especially loyal to their true masters, then like the former budget director Peter Orszag they can go to work for a bank. This surely accounts in part for their present actions.

And the President too is a young man. Unlike say Lyndon B. Johnson or Jimmy Carter, when his term ends he won't be able simply to go home. He'll need a big house in a gated suburb, with high walls and rich friends. And a good income, too, from book deals and lecture fees. He may be thinking about that now.

The good news is: it won't save him. For if and when he ventures out, for the rest of his life, the eyes of all those, whose hopes he once raised will follow him. The old, the poor, the jobless, the homeless: their eyes will follow him wherever he goes.

Editor: Michael Knigge

James K. Galbraith is the author of The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too, and of a new preface to The Great Crash, 1929, by John Kenneth Galbraith. He teaches at The University of Texas at Austin.

Sunday, August 7, 2011

Obama’s Wars Secret Surge

The Daily Beast

Obama’s Secret Surge


He pledged to unwind the international follies of the Bush administration. But what has President Obama actually changed? Newsweek crunched a decade of military data in search of an answer.

Thursday, August 4, 2011

All About Obama: A President Without an Ideology

title



All About Obama

A President Without an Ideology



Jonathan Alter, The Promise: President Obama, Year One. Simon & Schuster, $16 (paper)

Eric Alterman, Kabuki Democracy: The System vs. Barack Obama. Nation Books, $14.99 (paper)

Roger D. Hodge, The Mendacity of Hope: Barack Obama and the Betrayal of American Liberalism. Harper, $14.99 (paper)

James T. Kloppenberg, Reading Obama: Dreams, Hope, and the American Political Tradition. Princeton University Press, $24.95 (cloth)

Daniel T. Rodgers, Age of Fracture. Harvard University Press, $29.95 (cloth)



Eduardo Leite / iStockphoto

A month before the 2008 presidential election, the cover of The American Prospect, which I edited at the time, depicted an empty Oval Office and the headline, “The President Doesn’t Matter (As Much As You Think).” Inside we ran articles about the institutions of Washington, such as the Senate Finance Committee—and its feckless chairman, Max Baucus—and the Federal Reserve, explaining the limits they would impose on the scope of change that might be possible under an Obama administration.

The issue fell flat on the newsstand, and the Prospect’s board of directors was apoplectic about the cover. Even if my colleagues and I were right, the publisher complained, the cover “wasn’t appropriate to the moment.”

We were right, as it turns out. But it’s also true that it wasn’t an appropriate moment to make that point, because no one wanted to hear it. Remember when all we could talk about was the possibility of a “transformational president”? In the thrill of what was, for many of us, the first decisive Democratic victory in our lifetimes, and what seemed to be—and probably is—a demographic shift in the electorate toward the younger, the nonwhite, and the socially tolerant, it was too easy to imagine that the 30-year conservative era dating from roughly halfway through the Carter administration had ended with a bang and that change on the scale of an FDR or a Reagan was possible.

In that moment, many liberals forgot an insight that they had painstakingly learned—or should have learned—in the Bush era: conservative dominance was not just a matter of electing a president, but of building, in the words of former Senator Bill Bradley, “a stable pyramid” of organizations focused on policy development, grass-roots mobilization, and media, “at the top of which you’ll find the president.” That president could be almost anyone—even, as if to prove the point, George W. Bush—because the ideological and organizational infrastructure is more important. Democrats, Bradley argued in a 2005 New York Times op-ed, “invert the pyramid,” vesting all hope in individual presidential candidates, who are expected to build their entire infrastructure from scratch. Three years later Obama did exactly that.

Even for those who were not transfixed by the person of Barack Obama, or who appreciated the severe constraints on a president’s power, there were dispassionate reasons to expect that he would have better luck at maneuvering through those constraints than did his Democratic predecessors, Jimmy Carter and Bill Clinton. After all, he understood Washington, D.C. and had allies in Congress. Congressional Democrats, having experienced total powerlessness in the Bush years, would surely understand, as they did not in the 1970s and 1990s, that they had a stake in the president’s success. Obama’s invitation to bipartisanship and his conciliatory tone seemed well suited to discombobulate the Republicans and to reach just enough of them to render the Clinton-era strategy of mindless, uniform opposition ineffective. And the pyramid that Obama built, even if it was inverted, went far beyond anything progressive organizers had imagined. With its three million donors, cutting-edge online communications, millions of email contacts, and an incredible pool of talent, Obama’s network dwarfed the organizations that had begun to coalesce as the progressive infrastructure earlier in the decade: MoveOn.org, America Votes, the Center for American Progress.

It’s hard to remember all that through the haze of what has become, at best, a profoundly ordinary Democratic presidency. Obama has largely continued Bush’s policies on terrorism, civil liberties, and the war in Afghanistan, refused to hold banks accountable for the financial crisis, accepted an insufficient response to the recession, and failed to use the presidential appointment power to reshape institutions such as the judiciary and Fed. The range of options for dealing with the economic disaster has been narrow and familiar. The result was a midterm election that cost him almost all his momentum and political capital and further limited those options.

Since the election, Obama seems to have lost the ability to define the terms of political conflict. Instead he has drifted along, responding to an unimaginative agenda, focused at the moment on reducing the federal budget deficit. If the Affordable Care Act can be implemented as enacted, then—together with some low-profile initiatives in the 2009 economic stimulus, reforms in K–12 and higher education, the rescue of the auto industry, financial regulation, repeal of Don’t Ask/Don’t Tell, the successful closing of the chase for Osama bin Laden, and a few other victories—Obama can still be said to have had a first term of historic accomplishment, even if the times called for much more. But if health-care reform collapses—most likely as a result of the refusal of governors to cooperate rather than outright repeal—then his achievements would rank as more modest: a big step beyond Carter or Clinton, but no more transformational than either previous Democrat.

What happened? The explanations from the right and from the Sunday chat-show media are as routine as they are implausible: Obama revealed himself as too liberal, too partisan, or anti-business, and now must reverse course. These are the critiques that the administration seems to have taken to heart.

Liberals have forgotten an insight they learned in the Bush era: conservative dominance was not just a matter of electing a president.

Yet it’s the answers from the left and center-left that are more relevant and probably more accurately reflect how Obama’s first term will be seen in history. They are not, it should be said, all that politically consequential. While liberal discontent with the president is highly visible on certain blogs, in magazines, and on the coastal dinner-party circuit, the real electoral base of the Democratic Party—minority and Hispanic voters, unmarried women, and self-identified liberals—remains devoted to Obama: Obama’s approval rating among Democrats who call themselves liberal has held steady at about 85 percent. The anger and the insistence that the president adopt an elite-bashing populist tone tend to come largely from well-off white people, often with tenure. That doesn’t invalidate it, but it does make it an unusual variety of populism, one more appealing to elites themselves than to those they would speak for. The quiescence of the Democratic Party’s base has been frustrating to many liberals, but it is an unavoidable fact, and without some mass anger, pressure, or a plausible 2012 primary challenge, it’s hard to see the White House jumping in reaction to, say, a scathing Salon column by Glenn Greenwald. The liberal bark won’t be heard if people aren’t willing to bite.

The mobilization in Wisconsin this spring, which brought students and activists by the thousands to Madison in response to Governor Scott Walker’s confrontation with the state’s public employee unions, revealed that mass organizing is not dead, but it’s much easier to mobilize liberals in opposition to the right than to the policies of a president they regard basically as a friend and ally, even if they’re disappointed. Wisconsin-style mobilization may expand Obama’s room to maneuver, but it won’t change the basic calculus of White House operatives, who regard the left as a nuisance but ultimately take them for granted since they have no place else to go.



• • •


There are three broad classes of explanation for the deflation of the Obama bubble, and the one that appeals to you probably has something to do with your political temperament.

One story is that we are the victims of a con artist. Obama was a fraud from the start whose true colors were revealed once he took office. Of recent books about the administration, Roger Hodge’s The Mendacity of Hope gives this argument its fullest voice. If you were hyper-allergic to Obama (like the die-hard supporters of Hillary Clinton in 2008 who called themselves PUMAs, or the historian Sean Wilentz), or at the other extreme, you went all-in for Obama-mania and now want your money back and the “hope” tattoo burned off, this is the book for you. The former editor of Harper’s Magazine, Hodge employs the skills of an English major-gone-to-law school to recast the entire familiar biography as a dark tale in which “an obscure striver in Chicago’s Democratic machine” and pawn of the nuclear-power industry is elevated by the country’s financial interests to become the latest agent in their centuries-long battle against democracy and the interests of the people. In one tour de force of close re-reading, Hodge manages to find in a section on the economy from Obama’s book The Audacity of Hope not only Obama’s secret Reaganite mindset, but also his responsibility for the financial deregulation of the late 1990s, even though he was apparently just a failed ward-heeler at the time.

Of all the recent books about Obama, Mendacity is the most enjoyable read, akin to The Onion’s post-election article revealing Obama as an “international con man” who fled the country with $85 million in campaign funds, having pulled the same scam in other countries under different names. Hodge’s historical sections on the long war between finance and ordinary people, while padding, are well done and have a calmer, more persuasive tone than the fevered Obama reinterpretation.

The problem with Mendacity is that it just reproduces Obama-mania in mirror image. The savior of 2008 is the villain of 2010. It’s still all about the man. While Hodge can see the structure of power constraining Obama, he nonetheless configures Obama as its central force, or willing dupe, rather than a reasonably well-intentioned actor in a complicated process, who isn’t quite as powerful as you think, never pretended to be quite as liberal as Hodge and his friends, and makes some mistakes.

Those mistakes form the center of analysis from a second family of critics, well represented in the columns of Paul Krugman. In this explanation, the promise of the Obama presidency was squandered by decisions at key points, with consequences that cascaded in the months and years that followed. These mistakes reflect Obama’s character, but what they show is not mendacity, but rather naïveté about power, conflict-aversion, or being “a bad gambler,” as The New Republic’s Jonathan Chait put it. The stimulus package is usually the original sin in this analysis: Obama should have demanded the full $1.2 trillion that his economists thought a strong recovery required, and if he didn’t get it, at least he would have showed the public that he was willing to fight for their jobs.

Other errors: letting Congress design the health care–reform legislation, which led to months of dithering and lost momentum, rather than presenting legislators with a plan and going to the mat for it. Wasting six months looking for bipartisan support that was never going to arrive on health care and climate change. The insistence by former Chief of Staff Rahm Emanuel that it was more important to “put points on the board” in the form of small legislative victories than to fight the big fights. Hiring Larry Summers, Tim Geithner, Peter Orszag, and others with links to Clinton Treasury Secretary Robert Rubin. Letting vacancies on the Federal Reserve, the courts, and in the bureaucracy remain unfilled. Appointing a deficit-reduction commission.

In each of these stories, there is an implied counterfactual, an alternate path that would have led to a better result. But would it? In some cases, that’s not just a mental exercise—there is a natural experiment. For example, the alternative to putting forward a complete health care–reform plan rather than letting Congress do it was tried in the Clinton administration, and it led to no legislation at all. Maybe times are different, and what failed then would work now, but in most cases, Obama’s choice made sense given the context and history. Pursuing bipartisan cooperation may have been folly, but without at least a tiny bit of it, Obama was hostage to whichever senator represented the 60th vote—ugly characters such as Connecticut independent Joe Lieberman or Nebraska Democrat Ben Nelson. Pushing for a bigger stimulus package is unlikely to have worked, since Democrats and Republicans were insistent on keeping the stimulus well below the arbitrary trillion-dollar mark. While it’s possible that Obama would have been seen as a passionate fighter for economic recovery, it’s more likely that he would be seen as someone who couldn’t get a stimulus bill passed. And what’s the alternative to Emanuel’s strategy of putting points on the board? Not putting points on the board?

The culture of American politics makes it nearly impossible to be president at all, let alone a transformational one.

In all of these situations, as the White House economic advisor Gene Sperling explains to Jonathan Alter in The Promise, “Ya gotta understand the context.” Understanding the context, then, represents the third major school of “what happened?” Each decision took place in a complex environment in which the president had to deal with a collapsing economy, global challenges, congressional resistance, and a brutal media not limited to the political operation at Fox News. The context also includes the limited scope of ideas available to the White House—that is, the rickety pyramid underneath them. For example, few progressive think tanks were ready in 2008 with better approaches to financial regulation than the clumsy improvisations of TARP, HAMP (the Home Affordable Modification Program), and Dodd-Frank. Context also matters in the case of presidential appointments: Alter shows how the fiasco of former Senator Tom Daschle’s aborted appointment as secretary of Health and Human Services—when he was revealed to have failed to pay taxes on a car and driver made available to him by a supporter—derailed the entire process and sent the White House into a spiral of endless vetting and hesitation.

Among the contextual analyses of the Obama record, Alter’s book is the play-by-play (although mostly of the first year; the setbacks of the second are chronicled in a fifteen-page epilogue to the paperback edition), while Eric Alterman’s Kabuki Democracy: The System vs. Barack Obama is the color commentary, the book that finally lets Obama out of sight and delves deeply into the failed-state culture of American politics that makes it nearly impossible to be president at all, let alone a transformational one.

“Kabuki” is not Alterman’s invention, but a word we often used when I worked on Capitol Hill in the 1990s to describe the rituals, hazing, and outright frauds that make up the day-to-day life of America’s democratic institutions. It’s the whole world of fake votes; pandering to lobbyists who in turn trick their clients; constructed showdowns, such as the game over the debt ceiling; and a dozen other gimmicks that have spun wildly out of control in the years since. Alterman defines kabuki as something that “resembles a democratic process at great distance but mocks its genuine intentions in substance.” And he goes on, in his short book, to fill out that wise definition with solid accounts of the multiple debacles of the Bush era, the capture of Congress by lobbyists, the poisonous role of the right-wing media, the unrepresentative nature of the Senate in particular, and the failure of the left to mobilize.

If there is a flaw in Alterman’s excellent book it is that, in his focus on the right, he lets congressional Democrats off the hook. Aside from Senator Charles Schumer, hardly the worst of the lot, he has little to say about the many Democrats who made a hash of Obama’s agenda. When I think back to the two erroneous predictions that I made after the 2008 election—that Obama would succeed in splitting off a few cooperative Republicans and that congressional Democrats would stand with him rather than throw him overboard as they had Clinton and Carter—it’s the second that upsets me most. It was only a matter of weeks before Democrats in both houses started insisting on scaling back the stimulus and hedging their bets by establishing a record of voting against the president, and it was some of Obama’s earliest supporters, such as Nelson and Claire McCaskill of Missouri, who were most mercenary. Even after the 2010 election showed that voting against health-care reform and other Obama initiatives was no insurance against defeat, Obama’s Democratic “frenemies” were still at it. As of this writing, McCaskill is pursuing a disastrous proposal for a cap on federal spending and threatening to insist on it as a condition of raising the federal debt limit. The fearful, hyper-cautious culture of learned helplessness among congressional Democrats and their staffers—with a few exceptions, such as Nancy Pelosi, House Democratic Conference Chair John Larson, and Senate Whip Richard Durbin—is every bit as crippling to an ambitious president as the unflinching opposition of Republicans. Kabuki is a bipartisan drama.



• • •


By the time we reach this appreciation of the context, pressures, and institutional culture, the figure of Barack Obama has gone from being overexposed in the foreground to disappearing in the background. Does the president matter at all? What distinguishes an Obama presidency from what we would have ended up with had Hillary Clinton or, say, John Kerry been elected in 2008?

It must make some difference, or all that mental energy we expended in the long primary battles of 2008 was for nothing. To bring Obama himself back into the picture, the most valuable recent book is one that has little to say about the first years in office, but explores Obama’s pre–White House evolution from a fresh angle. James Kloppenberg’s Reading Obama is an intellectual biography of the president, tracing the influences on his thought, from his two colleges through law school and the lessons of community organizing. The book received too little attention when it came out last fall, other than a breathless profile in The New York Times reporting Kloppenberg’s conclusion that Obama is “a true intellectual.” That summary is unarguable and unkind—intellectuals such as Woodrow Wilson and John Quincy Adams have had a sad history in the White House compared to second-class minds equipped with tactical and emotional intelligence, such as FDR—and it fails to do justice to a fine book. Kloppenberg’s real question is not whether Obama is “an intellectual,” but what kind of intellectual—that is, where are his ideas coming from?

The answer, put simply, is that Obama falls into the tradition of American Pragmatism, and particularly its revival in recent decades. That’s capital-P Pragmatism, as opposed to the use of the word in American politics to mean simply getting things done. Pragmatism—and its close cousin in the thought of William James, pluralism—is not the absence of a coherent philosophy, but our native philosophy, just as jazz is our native music. It is an attempt to construct an approach to knowledge, ideas, and action that recognizes context, contingency, and reality. Pragmatism forms the basis of American legal realism, for example, and Kloppenberg shows how Obama helped his professor Laurence Tribe re-imagine the Constitution as a “conversation” across generations to address different problems in different contexts.

One of the advantages of considering Obama’s evolution through the lens of intellectual history rather than personal biography is that he’s not alone. Kloppenberg describes Obama struggling with the same questions that every thoughtful liberal confronts. Here, a generational perspective is important: what Hodge doesn’t recognize is that Obama’s was a generation in which Reaganism had already happened. Unlike Krugman’s or Clinton’s, Obama’s generation (and mine) is not the Baby Boom, a group shocked by the collapse of a liberal consensus it had taken for granted and never fully appreciated. Our generation tried to build a political philosophy in a world in which Reagan was a fact on the ground. Ideas such as Robert Putnam’s valorization of civil society (Obama participated in Putnam’s seminars for civil society activists and thinkers) and the German philosopher Jürgen Habermas’s concept of politics as discourse seemed like possibly useful tools in the construction of an alternative public philosophy for the left.

Pragmatism may be a useful way of understanding the fractured, contingent world, but it doesn’t resolve the problem of governing it.

In Kloppenberg’s account the slow shift in the thinking of the Harvard political philosopher John Rawls—from the carefully structured system of his path-breaking Theory of Justice to his 1993 book Political Liberalism—was significant. Over the course of 22 years, Rawls tried to work out the idea that people with wildly incommensurate views about morality and religion could nonetheless converge on a conception of justice—and thus achieve what Rawls called an “overlapping consensus” on what justice requires.

At about the same time, the philosopher Richard Rorty turned to politics, adapting his Pragmatism to an influential but surprisingly modest vision of public life based on concepts such as social solidarity and avoiding cruelty to others. Indeed, Rorty’s prescriptions were considerably more modest than Rawls’s political liberalism. Although Rorty was almost as detached from real-world politics as was Rawls, his later books, Philosophy and Social Hope and Achieving Our Country, captured exactly what we were looking for: an ideology that wasn’t an ideology, a vision that was adaptable and humble, that recognized the enormous complexity of political viewpoints in the country, while maintaining a vision of social justice.

The question Kloppenberg asks, though not in so many words, is: can Pragmatism form a workable political program for the American left? Can a political philosophy based not on a fixed ideology or the unquestioned assumptions of the old liberals, but the idea that an overlapping consensus can be found and minimal social goods agreed upon, be a realistic strategy for governing this country? The Obama presidency should be seen as an attempt to answer that question.

Kloppenberg describes an evolution in which old certainties fell away, where “timelessness and universality were out, contingency and particularity were in.” Daniel T. Rodgers, a historian concerned with similar questions, explores that 30-year transition in greater depth in The Age of Fracture, which came out at about the same time as Kloppenberg’s book and should be read alongside it. Rodgers begins with a chapter on the speeches of Ronald Reagan, which provides a useful clue to the very different world in which Obama finds himself. Whatever we think of Reagan’s political legacy, we can’t help but admire his ability to command his time, define the conflicts, and survive a severe recession. His speeches were surely a part of that. Yet Obama, an equally gifted orator, cannot command the time in the same way.

That has something to do with the fracturing that Kloppenberg and Rodgers describe. When Reagan was president, most Americans didn’t even have cable television: the news was the news, the president was the president, there was general agreement on certain facts, causes and effects. Today everyone gets their news from their own sources, and the president’s is just one voice among many. Political money doesn’t just fund candidates, it fuels campaigns that change public assumptions. The reality of climate change or the certainty that cutting government spending will worsen the economy can be disputed by anyone with an interest in doing so. There’s no overlapping consensus, no consensus at all, in a world where everything is contested.

And so the preliminary answer to Kloppenberg’s implicit question is no: Pragmatism may be a useful way of understanding the fractured, contingent world, but it doesn’t resolve the problem of governing it. Obama, therefore, has the challenge of building a more coherent ideological vision (as he did in his April 13 speech on the budget), or resorting to small-p pragmatism, just trying to get reelected and get some things done. If he is to take the first path, though, it falls on liberals to help build the pyramid of ideas and organizations on which he and future presidents can stand. It can’t be all about him.

Obama's Big $$$ Giveaway to Big Oil

The Daily Beast

Obama’s Oil Giveaway

After Democrats railed against letting energy companies keep their tax breaks in the debt deal, the Obama administration handed out more than $12 million for research to help oil and gas drilling.

by Daniel Stone

On the same day that Democrats railed against letting oil and gas companies keep their tax breaks in the debt deal, the Obama administration handed out $12.4 million in research grants to help the industry improve the way it drills for oil and gas.

The National Energy Technology Laboratory, the Energy Department’s research arm, announced Monday the series of grants to 10 university and private companies, saying it wanted to help the industry develop better ways to extract natural gas through hydraulic fracturing (dubbed "fracking"), a controversial method that fractures bedrock with a mixture of water and chemicals.

Some of the projects, including one by GE, which will receive the largest chunk of the money, are designed to research the risks associated with fracking, including treating the water for contaminants like radiation. Others will focus on new extraction technology to access oil and gas in hard-to-reach places.

Ironically, at the same time the administration was doling out the money, Democrats such as House Minority Leader Nancy Pelosi were criticizing the debt deal for not raising taxes on the rich or on companies. “We compromised a great deal on cutting back spending, but I see no compromise in terms of allowing billionaires to pay their far share and allowing tax loopholes for oil and other large corporations to be closed,” Rep. Eliot Engel, D-N.Y., lamented to The Hill newspaper.

To environmentalists and budget hawks alike, the handouts were especially surprising in light of the $35.1 billion combined profit windfall that the world’s six largest fossil-fuel companies—Exxon, BP, Shell, Chevron, Total, and ConocoPhillips—saw in the second quarter of 2011. Profits for all of the companies, except for BP, set new records. Some wondered aloud why the energy companies weren’t left to fund the research themselves.

“These energy companies have done extremely well. Clearly this research and development will help them.”

stone-obama-oil

The Obama administration gave $12.4 million in research grants to oil and gas companies on the same day that Democrats lambasted the debt deal for not ending tax breaks for those industries., AP Photo

“Many of these projects are for technologies that are directly going to benefit the bottom line of some of the biggest companies in the country,” says Steve Ellis, vice president with advocacy group Taxpayers for Common Sense. “These energy companies have done extremely well. Clearly this research and development will help them.”

Environmentalists also signaled their discomfort. “The taxpayers should not be spending money to help an industry increase its profits,” says Amy Mall, a senior policy analyst with the National Resources Defense Council. But the group noted the need for more independent and objective research on the environmental impacts of drilling.

In announcing the funding, the Department of Energy said that quantifying the risks will help make energy exploration safer and more efficient, especially while the country still relies on oil and gas for about 60 percent of the nation’s power. The results of the research will be available to all energy developers for free.

The White House defended the government grants, pointing to Obama’s 2011 Blueprint for a Secure Energy Future, which says that the Energy Department and the Environmental Protection Agency will fund occasional research to examine the environmental impacts of energy exploration.

Update: Damien LaVera, a spokesman for the Department of Energy, clarified that the projects are not being funded with taxpayer money, but instead a different internal fund that collects lease bonuses and royalties from gas and oil developers. "This funding is part of the administration's effort to ensure that America's energy resources are developed safely and responsibly,” says LaVera. “It supports mostly university research that will help inform best practices and ensure we continue to take steps to minimize environmental impacts, including protecting drinking water.”

The history lesson Obama has ignored




Editor: Laura Miller
Updated: Today
Topic:

History

The history lesson Obama has ignored


The history lesson Obama has ignored
Wikipedia
Former president Franklin Delano Roosevelt

This originally appeared at New Deal 2.0

"The economic experiments of President Roosevelt may prove, I think, to be of extraordinary importance in economic history, because for the first time -- at least I cannot recall a comparable case -- theoretical advice is being taken by one of the rulers of the world as the basis of large-scale action. The possibility of such a remarkable event has arisen out of the utter and complete discredit of every variety of orthodox advice. The state of mind in America which lies behind this willingness to try unorthodox experiments arises out of an economic situation desperate beyond precedent."

- John Maynard Keynes, January 1934

Just under three quarters of a century ago, a group of conservative economic advisers close to Franklin Roosevelt informed the President that they were worried about the rapid rate of growth in the US economy. Since 1933, when FDR took over at the height of the Great Depression, the economy had been expanding steadily, at an average rate of 14 percent per year. Schooled as most of these advisors were in the tenets of economic orthodoxy (which called for cuts in spending during an economic downturn), and unsure of the effects of the Keynesian-style deficit spending that the administration had been engaged in under the terms of the early New Deal, the President was advised to cut the budget, reduce deficit spending and tighten the money supply as a means to stave off inflation. Heeding their word (and no economist himself), FDR did just that.

The results were an unmitigated disaster.

Thanks to the Administration’s decision to move away from the increasingly Keynesian policies it had been following — policies that saw the unemployment rate fall from a high of 25 percent in 1933 to 14 percent by 1937 -- FDR launched one of the sharpest economic downturns in American history-the so-called "Roosevelt Recession" of 1937-38. In just a few short months, the GDP declined by 13 percent; industrial production by 33 percent; wages by 35 percent and an estimated four million people lost their jobs. No fool, FDR quickly reversed himself and went back to Congress to seek a massive stimulus bill to put people back to work and repair the damage to the Depression-era economy. Within three months growth had returned and the economy was back on track.

FDR only met John Maynard Keynes once during the 1930s, and after their 1934 meeting both men expressed a certain ambivalence about the other (Keynes said FDR did not know much about economics and Roosevelt said with all of his "numbers" Keynes struck him as more of a mathematician than an economist). But the lessons FDR drew from the 1937-38 recession were clear: Cutting federal spending and tightening the money supply in the midst of a deep economic crisis were bad ideas and from this point on his administration pursued economic policies that can only be described as unabashedly Keynesian. FDR may never have publically embraced Keynes’s theories, and in fact preferred to call his subsequent use of massive government borrowing and spending "compensatory fiscal policy," but the two concepts were virtually identical.

Spurred along by this change of heart and by the growing demands to increase defense spending to meet the challenges of World War II, the federal government borrowed 100s of billions of dollars in the late 1930s and early 40s, while at the same time government expenditures -- i.e. stimulus -- reached record levels. By the time the United States was fully engaged in the war, federal spending accounted for more than half of the country’s Gross National Product, business was booming and the scourge of unemployment had all but disappeared.

And what were the long term consequences of all of this borrowing and spending? Economic chaos? A sovereign debt and default crisis? No, what followed was more than three decades of postwar economic expansion and the creation of perhaps the best paid and best educated work-force America had ever seen.

The modern middle class was born.

In the past two years we have heard official after official claim that they do not want to repeat "the mistakes of the Great Depression." Yet the recent behavior of both the Obama Administration and senior members of Congress belies this claim. Rather than fight for economic policies that would stimulate the economy and put people back to work, this Administration -- and even many senior democratic party officials -- have chosen to ignore the lessons of the past. Instead of focusing on jobs and growth -- the real crisis in our economy -- they have embraced the sky-is-falling rhetoric of the Republican Party extremists. These fear mongerers and obstructionists have convinced millions of Americans and virtually the entire US media that the key to economic recovery is to slash federal spending. The administration’s championing of the 39 billion in cuts to the 2010-2011 budget and the recent debacle over the debt ceiling -- with an agreement that does nothing to stimulate the economy -- are but two sorry examples of this phenomenon.

In 1937 FDR paid a heavy political price for his decision to turn away from Keynesian economics. The democrats lost seats in the 1938 election and FDR’s ability to push through further fundamental reforms in Congress was severely limited from this point forward. Worse still, millions of Americas suffered from the sudden economic downturn that came as a result of these ill-timed and unnecessary cut-backs.

President Obama sells the Budget Control Act of 2011 as a victory for the American people; as an important "first step" in solving the "deficit crisis." But he has missed a fundamental point: the most effective way to reduce the federal deficit in the long term is to spur economic growth in the short term. He also seems to have lost sight of the fact that the real crisis we face is that roughly 26 million Americans are either under employed or out of work. This national tragedy could be greatly alleviated by a return to the Keynesian economic policies temporarily abandoned by Franklin Roosevelt three quarters of a century ago. But neither the President nor his colleagues in Congress appear to have the desire or political will to resist the incessant Republican demands to cut spending no matter what the cost to the American people.

It is sad to think that history may be repeating itself. But the apparent decision of this administration to embrace cuts over spending may soon lead the President down the same path that FDR took in 1937. Only this time the "Obama recession" of 2011-2012 will most likely cost the current president his job.

David Woolner is a Senior Fellow and Hyde Park Resident Historian for the Roosevelt Institute.

Nearly 80% of Obama’s Top Bundlers Given “Key Administration Posts”

ABC NEWS

Political Punch
Power, pop, and probings from ABC News Senior White House Correspondent Jake Tapper

Report: Nearly 80% of Obama’s Top Bundlers Given “Key Administration Posts”

June 15, 2011 6:21 PM

President Obama launched his campaign in 2007 promising a change in the way business is done in Washington, DC, but today a report from the Center for Public Integrity says that when it comes to major campaign donors scoring plum administration positions, it’s business as usual.

The report says that 184 out of 556, or about one third of 2008 Obama campaign “bundlers” -- donors who agree to raise hundreds of thousands of dollars for a campaign – “or their spouses joined the administration in some role. But the percentages are much higher for the big-dollar bundlers. Nearly 80 percent of those who collected more than $500,000 for Obama took ‘key administration posts,’ as defined by the White House.

The Center points out that candidate Obama suggested that big moneyed interests would not have as prominent a role in DC during his administration.

"The cynics, the lobbyists, the special interests who've turned our government into a game only they can afford to play,” said then-Sen Obama in his February 2007 announcement speech. “They get the access while you get to write a letter…The time for that kind of politics is over."

The White House today pushed back on the Center report, saying it’s “hardly a story” and insisting that donations play no role in these plum jobs.

"The people who got those positions got them because of their credentials," said White House Press Secretary Jay Carney. "They also happen to be donors in some cases. ... Being a supporter does not qualify you for a job or guarantee you a job, but it does not disqualify you."

It's essentially the same explanation the Bush administration gave.

"We make no distinctions about people on the basis of whether they've given or not," said White House Press Secretary Ari Fleischer in January 2001.

Tom Perrelli raised $500,000 for Obama in 2008 and is now associate attorney general. Charles Rivkin did the same and is now ambassador to France, so did Donald H. Gips, ambassador to South Africa, and John Roos, ambassador to Japan.

Carney insisted that all bundlers given these positions were qualified, but earlier this year, the Ambassador to Luxembourg, Cynthia Stroum -- who also was a half-million dollar Obama bundler -- resigned right before a State Department Inspector General report was issued calling her "aggressive, bullying, hostile and intimidating."

Schulte, Senior Reporter with the Center, says that there is a difference between the Bush administration and the Obama administration.

“We did look at the administration of George Bush which was widely criticized for appointing donors to these kinds of posts, and they had about the same number in four years that the Obama administration has had in two years,” Schulte said.

And according to the American Foreign Service Association, President Obama has nominated more “political” appointees for ambassadorships versus foreign service candidates than any president in at least the past 20 years. A full 36.2% of Obama’s ambassadors are political, while just over 30% of Bush’s were political. Former President Clinton, 27.82% were political, for President George H.W. Bush, 30.3% were political.

-Jake Tapper and Kirit Radia

Wednesday, August 3, 2011

Debt Ceiling Deal: The Democrats Take a Dive

Rolling Stone

POLITICS

POSTED:

Commentators everywhere are killing the president for his seemingly astonishing level of ball-less-ness.
JEWEL SAMAD/AFP/Getty Images

So the debt deal has finally been reached. As expected, the agreement arrives in a form that right-thinking people everywhere can feel terrible about with great confidence.

The general consensus is that for the second time in three years, a gang of financial terrorists has successfully extorted the congress and the White House, threatening to blow up the planet if they didn't get what they wanted.

Back in 2008, the congress and George Bush rewarded Hank Paulson and Wall Street for pulling the Cleavon-Little-"the-next-man-makes-a-move-the-n---er-gets-it" routine by tossing trillions of bailout dollars at the same people who had wrecked the economy.

Now, Barack Obama has surrendered control of the budget to the Tea Party, whose operatives in congress used the same suicide-bomber tactic, threatening a catastrophic default unless the Democrats committed to a regime of steep spending cuts without any tax increases on the wealthy.

Commentators everywhere are killing the president for his seemingly astonishing level of ball-less-ness. Both the New York Times house editorial and the Nobel prizewinning liberal columnist Paul Krugman are insisting the president should have invoked extreme measures to counter the radicals on the other side, using emergency legal tactics to unilaterally raise the debt limit. Or, at least, he should have threatened to do this, according to Krugman:

And even now, the Obama administration could have resorted to legal maneuvering to sidestep the debt ceiling, using any of several options...

At the very least, Mr. Obama could have used the possibility of a legal end run to strengthen his bargaining position. Instead, however, he ruled all such options out from the beginning.

Is Krugman right? Probably. In a perfect world, where the president was what he is supposed to be, i.e. a representative of that majority of American voters who elected him, that is what a good president would probably have done. No matter what the situation was with the deficit, or what cuts were or were not justified, a real leader would have invoked such powers at the very least to set a precedent that the government is not to be held hostage by irresponsible lunatics bent on invoking a catastrophe for purely political reasons.

But that isn't what happened. What did happen? The popular take is that Obama is a weak leader of a weak party who was pushed around by canny right-wing extremists. Observers like pollster Sydney Greenberg portray Obama and the Democrats as a group of politically tone-deaf bureaucrats who fail because the public associates them with a corrupt government that benefits the rich and connected.

The Democrats, Greenberg argues, could change their situation by showing the public that they genuinely represent the interests of ordinary working people. In his piece, "Why Voters Tune Out Democrats," he offers a list of things Democrats could do to turn things around:

What should Democrats do?

The Democrats have to start detoxifying politics by proposing to severely limit or bar individual and corporate campaign contributions, which would mean a fight with the Supreme Court. They must make the case for public financing of campaigns and force the broadcast and cable networks to provide free time for candidate ads. And they must become the strongest advocates for transparency in campaign donations and in the lobbying of elected officials.

IF they want to win the trust of the public, Democrats should propose taxing lobbyist expenses and excessive chief executive bonuses and put a small fee on the sale of stocks, bonds and other financial instruments. By radically simplifying the tax code to allow only a few deductions, the Democrats would generate new revenue and remove the loopholes that allow special interests to win favorable treatment ...

I think everything Greenberg says is true -- except for the part about it being possible. His list of solutions would make sense as advice to a real political party.

But to a bunch of hired stooges put in office to lend an air of democratic legitimacy to what has essentially become a bureaucratic-oligarchic state, what good does such advice do? Would it have made sense to send the Supreme Soviet under Andropov or Brezhnyev a list of policy ideas for enhancing the civil liberties of Soviet citizens?

The Democrats aren't failing to stand up to Republicans and failing to enact sensible reforms that benefit the middle class because they genuinely believe there's political hay to be made moving to the right. They're doing it because they do not represent any actual voters. I know I've said this before, but they are not a progressive political party, not even secretly, deep inside. They just play one on television.

For evidence, all you have to do is look at this latest fiasco.

The Republicans in this debt debate fought like wolves or alley thugs, biting and scratching and using blades and rocks and shards of glass and every weapon they could reach.

The Democrats, despite sitting in the White House, the most awesome repository of political power on the planet, didn't fight at all. They made a show of a tussle for a good long time -- as fixed fights go, you don't see many that last into the 11th and 12th rounds, like this one did -- but at the final hour, they let out a whimper and took a dive.

We probably need to start wondering why this keeps happening. Also, this: if the Democrats suck so bad at political combat, then how come they continue to be rewarded with such massive quantities of campaign contributions? When the final tally comes in for the 2012 presidential race, who among us wouldn't bet that Barack Obama is going to beat his Republican opponent in the fundraising column very handily? At the very least, he won't be out-funded, I can almost guarantee that.

And what does that mean? Who spends hundreds of millions of dollars for what looks, on the outside, like rank incompetence?

It strains the imagination to think that the country's smartest businessmen keep paying top dollar for such lousy performance. Is it possible that by "surrendering" at the 11th hour and signing off on a deal that presages deep cuts in spending for the middle class, but avoids tax increases for the rich, Obama is doing exactly what was expected of him?

Tuesday, August 2, 2011

The myth of Obama's "blunders" and "weakness"



Glenn Greenwald

The myth of Obama's "blunders" and "weakness"

The myth of Obama's
AP Photo/Ron Edmonds, File

(updated below - Update II [Tues.])

With the details of the pending debt deal now emerging (and for a very good explanation of the key terms, see this post by former Biden economic adviser Jared Bernstein), a consensus is solidifying that (1) this is a virtually full-scale victory for the GOP and defeat for the President (who all along insisted on a "balanced" approach that included tax increases), but (2) the President, as usual, was too weak in standing up to right-wing intransigence -- or simply had no options given their willingness to allow default -- and was thus forced into this deal against his will. This depiction of Obama as occupying a largely powerless, toothless office incapable of standing up to Congress -- or, at best, that the bad outcome happened because he's just a weak negotiator who "blundered" -- is the one that is invariably trotted out to explain away most of the bad things he does.

It appears to be true that the President wanted tax revenues to be part of this deal. But it is absolutely false that he did not want these brutal budget cuts and was simply forced -- either by his own strategic "blunders" or the "weakness" of his office -- into accepting them. The evidence is overwhelming that Obama has long wanted exactly what he got: these severe domestic budget cuts and even ones well beyond these, including Social Security and Medicare, which he is likely to get with the Super-Committee created by this bill (as Robert Reich described the bill: "No tax increases on rich yet almost certain cuts in Med[icare] and Social Security . . . . Ds can no longer campaign on R's desire to Medicare and Soc Security, now that O has agreed it").

Last night, John Cole -- along with several others -- promoted this weak-helpless-President narrative by asking what Obama could possibly have done to secure a better outcome. Early this morning, I answered him by email, but as I see that this is the claim being pervasively used to explain Obama's acceptance of this deal -- he was forced into it by the Tea Party hostage-takers -- I'm reprinting that email I wrote here. For those who believe this narrative, please confront the evidence there; how anyone can claim in the face of all that evidence that the President was "forced" into making these cuts -- as opposed to having eagerly sought them -- is mystifying indeed. And, as I set forth there, there were ample steps he could have taken had he actually wanted leverage against the GOP; the very idea that negotiating steps so obvious to every progressive pundit somehow eluded the President and his vast army of advisers is absurd on its face.

Here's The New Republic's Jonathan Cohn -- who, as he says, with some understatement, is usually "among [Obama's] staunchest defenders in situations like these" -- on what these guaranteed cuts mean (never mind the future cuts likely to come from the Super Committee):

As Robert Greenstein, of the Center on Budget and Policy Priorities, pointed out in a recent statement about a different proposal, there’s just no way to enact spending reductions of this magnitude without imposing a lot of pain. And contrary to the common understanding in the Washington cocktail party circuit, “pain” does not simply mean offending certain political sensibilities. Pain means more people eating tainted food, more people breathing polluted air, more people pulling their kids out of college, and more people losing their homes -- in other words, the hardships people suffer when government can't do an adequate job of looking out for their interests.

As I wrote back in April when progressive pundits in D.C. were so deeply baffled by Obama's supposed "tactical mistake" in not insisting on a clean debt ceiling increase, Obama's so-called "bad negotiating" or "weakness" is actually "shrewd negotiation" because he's getting what he actually wants (which, shockingly, is not always the same as what he publicly says he wants). In this case, what he wants -- and has long wanted, as he's said repeatedly in public -- are drastic spending cuts. In other words, he's willing -- eager -- to impose the "pain" Cohn describes on those who can least afford to bear it so that he can run for re-election as a compromise-brokering, trans-partisan deficit cutter willing to "take considerable heat from his own party."

UPDATE: Scott Lemieux writes to partially disagree with my argument here, but -- except for his description of Obama as a "moderate Democrat" (I think Krugman's "moderate Conservative" is more accurate) -- I don't really disagree with anything Lemieux wrote. Of course the fact that Obama wanted spending cuts does not preclude his having also made negotiation mistakes along the way. But my point is a more general one: for a long time, the standard progressive narrative was that Obama wanted a clean debt-ceiling hike but was being forced (by the Tea Party and bad negotiating) into unwanted budget cuts. The evidence -- beginning with Obama's own repeated statements -- is that that's just not true: he affirmatively wanted these cuts and more as part of the debt ceiling hike.

On a different note, I am quite certain that VastLeft has captured, in cartoon form, exactly what the rhetorical strategy will be for dealing with liberal anger over this deal (click on image to enlarge):

(

Or, as Charles Davis put it in a different context: "Remember when Michele Bachmann killed all those innocent people in Afghanistan, Pakistan, Yemen, Iraq and Libya? Ugh. Hate her."


UPDATE II: Matt Taibbi writes on whether Obama is actually a "weak negotiator":

Now, Barack Obama has surrendered control of the budget to the Tea Party. . . . Commentators everywhere are killing the president for his seemingly astonishing level of ball-less-ness. . . . The Democrats aren't failing to stand up to Republicans and failing to enact sensible reforms that benefit the middle class because they genuinely believe there's political hay to be made moving to the right. They're doing it because they do not represent any actual voters. I know I've said this before, but they are not a progressive political party, not even secretly, deep inside. They just play one on television. . . .

The Democrats, despite sitting in the White House, the most awesome repository of political power on the planet, didn't fight at all. . . . We probably need to start wondering why this keeps happening. Also, this: if the Democrats suck so bad at political combat, then how come they continue to be rewarded with such massive quantities of campaign contributions? When the final tally comes in for the 2012 presidential race, who among us wouldn't bet that Barack Obama is going to beat his Republican opponent in the fundraising column very handily? At the very least, he won't be out-funded, I can almost guarantee that.

And what does that mean? Who spends hundreds of millions of dollars for what looks, on the outside, like rank incompetence?

It strains the imagination to think that the country's smartest businessmen keep paying top dollar for such lousy performance. Is it possible that by "surrendering" at the 11th hour and signing off on a deal that presages deep cuts in spending for the middle class, but avoids tax increases for the rich, Obama is doing exactly what was expected of him?

A mere three years ago, huge numbers of people invested substantial time, attention, energy, emotion and "hope" in fighting to put Barack Obama in the White House. The very human incentives not to reach this conclusion are both obvious and overwhelming.