Does President Obama understand “how America works”?
Posted: September 27, 2011 Filed under: just because 11 CommentsFrom Politico: POTUS testy in BET interview
President Obama, slipping in the polls among black supporters and under fire from black Democratic leaders for policies they say fail to address black poverty and unemployment, said Monday that targeting programs to help one community “is not how America works.”
Oh really? What is happening when the government bails out banks and investment firms? What about when the government offers tax cuts or loans for businesses–often specific businesses, like oil companies or auto manufacturers? What about Social Security, Medicare, and Medicaid? Don’t those programs target particular groups? What about programs to feed needy children or provide them with educational opportunities–like Head Start? Even more to the point, what about Affirmative Action?
What a silly remark!
Obama’s exclusive interview with BET’s Emmett Miller in the Oval Office is the latest in a flurry of outreach that included a private lunch Friday with prominent black radio talk show hosts, and a blistering speech Saturday night at a Congressional Black Caucus dinner.
It seems President Obama is still smarting from the criticism he got from Maxine Waters and Charlie Rangel after his offensive remarks to the Congressional Black Caucus.
The Grio has more detail about the interview:
Obama acknowledged that his administration did not anticipate the depth of the economic crisis he encountered upon entering office, and the need to help Americans understand how long the road to recovery could be. “if I traveled back in time? I would say it’s going to be a long hard slog and the American people are going to feel kind of worn down after this much difficulty,” he said. “But I’d also tell that less gray person to hang in there because the American people are resilient and they have good values and they care about the right stuff, and we’ll get through this.
I’d think if the President could travel back in time, he might choose to focus on jobs and the economy rather than a bloated Republican-style health insurance bill, but that’s just me. I’m not so sure that all of us are going to “get through this.” What he meant by “that less gray person,” I do not know.
Asked by Miller what he would tell a hard-hit African-American single mother on the south side of Chicago who was jobless and concerned that the president “won’t even say, ‘look, I am going to help you,” Obama pushed back on the premise, saying that’s not what people are telling him as he travels the country stumping for his American Jobs Act.
“What people are saying all across the country is we are hurting and we’ve been hurting for a long time,” the president said. “And the question is how can we make sure the economy is working for every single person.”
So why is the focus mostly on helping the wealthy and cutting Medicare and Medicaid then?
Saying targeting one specific group is “not how America works,” Obama emphasized that his policies were aimed at those who are hurting the most, whether because of a lack of healthcare coverage or a lack of a job, adding that because African-Americans are suffering disproportionately on those fronts, his policies were in fact designed to help black communities.
Well, I guess those policies aren’t working then, are they? Jeeze, this guy really doesn’t get it. Please, someone send him the video of LBJ withdrawing from the reelection race.
Rep. Sheila Jackson Lee did her very best to defend Obama’s remarks to the CDC on Tavis Smiley’s show. I just don’t buy it. Obama has alienated most of his liberal base, and now he’s working on driving away African Americans.
Un-politicizing Fiscal Policy?
Posted: September 26, 2011 Filed under: U.S. Economy | Tags: automatic stablizers 10 CommentsThis Op Ed by Peter Orzag at TNR from about a week ago is causing a flurry of tweets back and forth between people whose blogs I follow like Marcy at Empty Wheel, Atrios, and Matt Yglesias at TP. Orzag suggests we work at creating laws to take fiscal policy out of the hands of politicians. Vast amounts of economic research show that a politicized Fed creates economic havoc in an economy with bad monetary policy. Orzag suggests more automatic stabilizers as a way to depoliticize fiscal policy and get the right prescription to kick in without all the political grandstanding and gridlock. This means creating laws that work to correct business cycle frictions that make the correct impact without any political and legal action by Congress and the President. He frames it as embracing less democracy.
In an 1814 letter to John Taylor, John Adams wrote that “there never was a democracy yet that did not commit suicide.” That may read today like an overstatement, but it is certainly true that our democracy finds itself facing a deep challenge: During my recent stint in the Obama administration as director of the Office of Management and Budget, it was clear to me that the country’s political polarization was growing worse—harming Washington’s ability to do the basic, necessary work of governing. If you need confirmation of this, look no further than the recent debt-limit debacle, which clearly showed that we are becoming two nations governed by a single Congress—and that paralyzing gridlock is the result. So what to do? To solve the serious problems facing our country, we need to minimize the harm from legislative inertia by relying more on automatic policies and depoliticized commissions for certain policy decisions. In other words, radical as it sounds, we need to counter the gridlock of our political institutions by making them a bit less democratic.
Just as the founders feared, American democracy has gotten way too democratic. This new la-la-la-la-la-la refusenik approach to politics is especially wrong in the Senate, which was created to be the “temperate and respectable body of citizens” that could, owing to its more gentlemanly size and longer terms, ride above populist political hysteria. And it’s ironic that the most effective tool on behalf of tea-party purity, the cloture-proof filibuster, is a crudely undemocratic maneuver, permitting a minority of 41 to defeat a majority of 59. (How fitting that “filibuster” and “tea party” both derive from maritime criminality—to filibuster is to freeboot, or hijack debate like a pirate.) Senate filibusters used to be rare, a monkey wrench used only in cases of emergency, meant to allow debate to continue unimpeded and to protect minority opinion from being ignored. In the sixties, the decade of civil rights and the Great Society and Vietnam, there were never more than seven filibusters during one Senate term; in 2007–2008, scores of Republican filibuster threats resulted in cloture motions. The Democrats aren’t innocent in this downward spiral of truculence: Under Bush, they regularly filibustered to stop the confirmation of judicial nominees. On health care, even though the Senate bill isn’t remotely radical, the Republicans’ refusal to play along at least follows the contours of principle. But on the issue supposedly animating the post-Bush GOP and the tea-partiers, the massive deficit, a bi-partisan Senate bill to establish a bi-partisan commission to rein in future budgets was just defeated with 23 of 40 Republicans voting no—including a half-dozen of the bill’s original co-sponsors. The framers worried about democratic government working in a country as large as this one, and it’s possible that we’ve finally reached the unmanageable tipping point they feared: Maybe our republic’s constitutional operating system simply can’t scale up to deal satisfactorily with a heterogeneous population of 310 million.
Fiscal policy has a notorious inside and outside lag because it has to get through two houses of congress,a President, and then usually through some form of bureaucratic implementation. It’s been estimated that it can take 2 years to implement. In comparison, monetary policy general shoots through the economy in about 6 months. Orzag isn’t exactly suggesting we set up some kind of czar or political commission to deal with economic policy, he suggests we pass more laws that respond to the situation so the situation handles itself a little bit better. We already have plenty of automatic fiscal stabilizers that do kick in when the economy gets bad–like unemployment insurance–or when it overheats with inflation–like cola clauses–but this is a little more high powered than that.
Automatic stabilizers are features of the tax and transfer systems that tend by their design to offset fluctuations in economic activity without direct intervention by policymakers. When incomes are high, tax liabilities rise and eligibility for government benefits falls, without any change in the tax code or other legislation. Conversely, when incomes slip, tax liabilities drop and more families become eligible for government transfer programs, such as food stamps and unemployment insurance, that help buttress their income.
This would build in more fiscal responses to business cycle fluctuations by law. Here’s a few more specifics from Orzag.
What we need, then, are ways around our politicians. The first would be to expand automatic stabilizers—those tax and spending provisions that automatically expand when the economy weakens, thereby cushioning the blow, and automatically contract as the economy recovers, thereby helping to reduce the deficit. A progressive tax code is one such automatic stabilizer. The tax code takes less of your income as that income declines, so after-tax income tends to decline less in response to an economic shock than pre-tax income. Since spending is based on after-tax income, the impact on the economy is cushioned. Alan Auerbach of the University of California at Berkeley has found that, as a result, the tax code has, over the past 50 years, offset about 8 percent of the initial shock to GDP from economic downturns. For the same reason, making the tax code more progressive would strengthen its role as an automatic stabilizer. Unemployment insurance is another automatic stabilizer; as the economy weakens, unemployment insurance expands, providing a boost to demand right when the economy needs it. Other automatic stabilizers are possible as well. For instance, rather than simply extending and expanding the existing payroll-tax holiday, as President Obama has proposed, policymakers should permanently link the tax to the unemployment rate. Consider a system under which the payroll tax would be reduced by 6 percentage points whenever the quarterly average unemployment rate exceeded 7.5 percent or increased by more than 2 percentage points over the previous year. Since a cut in the payroll tax is a powerful form of stimulus, this would be a built-in way to ensure a quick and effective government response to an economic downturn.
I’m not convinced payroll tax cuts are powerful, but that’s just an example for Orzag given his role in the Obama policy making group until recently. Is that a good idea and is framing it as less democracy a bad sell?
Here’s the criticism from Empty Wheel.
Peter Orszag opines from the politically sheltered comfort of his gig at Citigroup that we have too much democracy.
I’ll say more about specific claims he makes below, but first, let me point out a fundamental problem with his argument. He suggests we need to establish institutions insulated from our so-called polarization to tackle the important issues facing this country. That argument is all premised on the assumption that policy wonks sheltered from politics, as he now is, make the right decisions. But not only is his own logic faulty in several ways–for example, he never proves that polarization (and not, say, money in politics or crappy political journalism or a number of other potential causes) is the problem. More importantly, he never once explains why the Fed–that archetypal independent policy institution–hasn’t been more effective at counteracting our economic problems.
If the Fed doesn’t work–and it arguably has not and at the very least has ignored the full employment half of its dual mandate–then there’s no reason to think Orszag’s proposed solution of taking policy out of the political arena would work.
As you undoubtedly know, I can’t agree with her take on the Fed because I’ve just seen way too much research and history of other countries with central banks that have been politicized and the results are horrible. I think that the statement she makes after the charge of “archetypal independent policy institution” isn’t a sound argument. She’s mistaking the impotency of monetary policy in the face of a liquidity trap for problems with the Fed itself. All you have to do is google central bank independence and you’ll get the decades old studies that show just how bad it can get if there’s a central bank invaded by pols. The Fed needs to be monitored but it no way should any politician get close to the Open Market Committee. She makes her usual great points though and it’s worth the read.
So, there’s some food for thought. Chew Away!
Monday Morning Reads
Posted: September 26, 2011 Filed under: morning reads | Tags: institutional racism, liberal racism, personal racism, Racism 66 CommentsI’ve been reading some things that have really gotten me thinking lately. The topic of racism has crept back into the public arena since the campaign season is now in full force. There have been two high profile media stories that have created a stir and one story that’s been percolating in my mind all last week.
There is the coverage of the President who opened the can of worms yesterday during a speech in front of a black audience. The other story was that of Morgan Freeman who called the Tea Party racist on the Piers Morgan Show. Herman Cain shot back on Sunday saying Freeman didn’t get what the Tea Party was about. Before both events, I had actually read this post at The Nation written by Melissa Harris-Perry–who I admire–on white liberal racism that evoked a really strong tweet from Max Blumenthal yesterday. Then, LGF sent me over to Andrew Breitbart’s site where I got an eyeful of comments left there by republicans and teabots on the President’s words that were characterized as black power dog whistles by folks over there. Calls of reverse racism filled the comments section.
So there’s my links to the re-emergence of the racism conversation. It hasn’t been pretty or civil. I really am not looking forward to any 2008 repeat of all that. Thankfully, Sky Dancing has been a refuge from trolls for the most part. I can tell you that Bostonboomer and I have had conversations on the phone about racism in the Tea Party before and I know we both feel there is overt racism in their ‘movement’. This doesn’t mean every one that’s attended one of their rallies is a racist, but all you have to do is look at their placards and you can’t deny it’s there. So, I have to admit to agreeing with Morgan Freeman on his comments. Obama’s presidency has brought a lot of the worst stuff out on to the streets again. I will also send you over to the LGF link to read the comments by Breitbart’s readers if you want to see exactly how alive, well, and thriving racism is in parts of the Republican party. The weird thing is that the folks in the Breitbart comments section think the President is playing the race card. It’s an odd juxtaposition of arguments to watch people screaming reverse racism using really overtly racist language and frames. I mean, how can you talk about reverse racism when writing out your screed in some form of perverted ‘ebonics’ ? Well, any way go look for yourself and you’ll see what I mean.
I agree with the Freeman comments that there has to be some underlying bit of racism in the republican obsession to get Obama out of office. The republicans did some pretty nasty things to Clinton, but I’ve never EVER seen so many people willing to take our entire country down over the election of one man. They’ve been at it consistently for nearly three years now. It’s like watching the confederacy rise again. All we hear is state’s rights and complete mis-characterizations of the president’s policies which have been very conventionally Republican. Draw out a game theory decision tree and tell me what sort’ve end game they have in mind when every strategic move they make is aimed at making Obama a one term president at WHATEVER the cost to the country. It’s just not rational.
Freeman said it unnerves him that the conservative movement is garnering momentum during an appearance on CNN last week.
“Their stated policy, publicly stated, is to do whatever it takes to see to it that Obama only serves one term,” he said. “What underlines that? Screw the country. We’re going to do whatever we do to get this black man, we can, we’re going to do whatever we can to get this black man out of here.”
Freeman characterized the actions of the Tea Party as “racist” and suggested that Obama’s presidency has only fueled the rise of the coalition of conservative activists, and in that context has made the issue of racism “worse.” He said, “It just shows the weak, dark underside of America. We’re supposed to be better than that. We really are. That’s why all those people were in tears when Obama was elected president. Look at what we are, you know? And then it just sort of started turning, because these people surfaced like stirring up muddy water.”
We know Obama’s candidacy stirred up the issue and we know he’s not beneath playing politics with racism when it behooves him to do so. However, his “Come march with me” speech is a narrative that tries to put the President in the same light as MLK when the President is no MLK. I do not think Obama is playing any race card because it feels to me like your basic pandering to a voting segment while trying to shore up your base. I don’t think it’s going to be very effective and I don’t think it’s a black power dog whistle. The Republican reaction to the speech idoes expose some of that overt racism to which Morgan Freeman alludes. When people act like Obama’s going Black Panther every time he gives a speech to black people there has to be something in there that’s above and beyond basic political differences.
However, back to where I agree with Blumenthal and draw the line at Melissa’s statements at The Nation painting those of us who criticize Obama with a huge brush of having double standards for blacks and whites. I had thought about posting this article before but I didn’t really want to go there. I have had my fill of that three years ago. However, in light of these other things, I thought I’d post the link and have the conversation.
Elements of racism are every where. The Tea Party can’t seriously deny that its attracted a pretty virulent strain. I’m not about to say that I didn’t notice it in the likes of people like Orly Taitz and other former Hillary supporters that jumped on the birther and secret Muslim wagon. However, some of this activity by die hard Obama supporters still strikes me as a hunt for communists under the bed and making excuses for the man. Maybe when you’re so vested in some one else’s success and they fail you repeatedly you just keep grasping for all the straws you can.
Dr. Harris-Perry thinks when we try to hold President Obama to his campaign rhetoric and criticize the deals that he makes with Republicans, we are holding Obama to a different standard than we did President Clinton because of Obama’s race. She believes that there has been unequal liberal criticism of Clinton’s triangulations and Obama’s “cave-ins”. I see more contextual differences than that. Clinton had a huge up hill battle given he got elected so close to the Reagan “morning in America myth”. There was less of an outcry for change then. Obama, to me, came in with a much stronger push for change and Dubya’s legacy was incredibly negative. Changing Dubya’s course would’ve been welcome. Trampling on the Reagan legacy would’ve gotten blowback.
This is Blumenthal’s response.
MaxBlumenthal Max Blumenthal
The Obamabot “you’re a racist” strategy may have shielded Obama from legit criticism in 2008, but it’s spent by now.
If even liberal-left critics of Obama are tarred as racists, critiques of real anti-Obama racism are cheapened, can be discredited by right
….if not discredited then dismissed.
Here’s Dr. Harris Perry’s closing thoughts after naming some disappointing things done by Clinton and Obama.
These comparisons are neither an attack on the Clinton administration nor an apology for the Obama administration. They are comparisons of two centrist Democratic presidents who faced hostile Republican majorities in the second half of their first terms, forcing a number of political compromises. One president is white. The other is black.
In 1996 President Clinton was re-elected with a coalition more robust and a general election result more favorable than his first win. His vote share among women increased from 46 to 53 percent, among blacks from 83 to 84 percent, among independents from 38 to 42 percent, and among whites from 39 to 43 percent.
President Obama has experienced a swift and steep decline in support among white Americans—from 61 percent in 2009 to 33 percent now. I believe much of that decline can be attributed to their disappointment that choosing a black man for president did not prove to be salvific for them or the nation. His record is, at the very least, comparable to that of President Clinton, who was enthusiastically re-elected. The 2012 election is a test of whether Obama will be held to standards never before imposed on an incumbent. If he is, it may be possible to read that result as the triumph of a more subtle form of racism.
My suggestion is that you read the comments column for her post and then go back and look at the actual comments in the Brietbart piece and not just the LGF slice of it. You’ll get a quick lesson in spot the overt racism.
I did see some rethink of her position last night on Twitter after a bit of a pile on.
MHarrisPerry Melissa Harris-Perry
It’s completely possible that I’m wrong & economy is only meaningful variable. But race is worth discussing. Expect allies to agree to that.
Joan Walsh has a response at Salon. I suggest you read it because it’s full of examples of liberals criticizing Clinton. In deed, much of that criticism of Clinton’s triangulations is what sent progressives away from Hillary Clinton in 2008 as I recall. So, it’s a good perspective.
Outside of Congress, many of the white progressives giving Obama the most trouble weren’t uncritical Clinton supporters, either. While we remember Moveon.org getting its start to back Clinton during impeachment, it’s worth recalling that it wanted Congress to censure Clinton for his misdeeds; its slogan was “censure, and move on.” Also, the progressive online group was tiny back then, with nothing like the reach it has now. Obama critic Michael Moore was also a Clinton critic, who famously supported Ralph Nader over Gore in 2000. Nader and Michael Lerner, two organizers of the recent letter calling for a primary challenge to Obama, both regularly attacked Clinton.
For a final perspective, I suggest you go to Black Agenda Report–which btw is holding a fundraiser and could use some support–for some other thoughts on Obama’s form of triangulation. I’m sending you to a recent article called: Barack Obama VS Those Craaaazy Republicans: Is He the Lesser Evil, or the More Effective Evil? Bruce A. Dixon characterizes what he calls Black Misleadership. I’d say he has the same criticism we’ve had and it’s certainly not sourced in white liberalism. However, he frames the complaints using race dynamics.
Since the forces financing Republicans are the same as those financing Democrats the directors of US political theater have the power to play games with us. For them, Obama is the preferable alternative. Only the First Black President could have disbanded the peace movement and rolled into town promising to “cut entitlements” without provoking a firestorm of protest. Only the First Black President could have accepted a Nobel Peace Prize with a war speech, and invaded an African country without millions of protesters in the street worldwide. Only the First Black President with a strong Democratic majority in Congress could have resumed offshore drilling after the Gulf BP disaster, and blocked any new regulation on the oil industry. Only the First Black President could have given GM back to its managers after sticking the unions with its underfunded health care and pension load. Only candidate Obama could have come in off the campaign trail in September 2008 to whip Democratic votes in the Democrat-dominated congress for the $3 trillion Bush bailout, and only the First black President could have quintupled down on that bailout, giving the banksters $15 trillion more once in office.
From their standpoint, Obama needed, and continues to need two things. First, Obama needs running room to his right. In order for Obama to enact the neoliberal policies of his militarist and bankster sponsors, the policy demands of Republicans had to move further and still further rightward. In other words, he needs Republicans to play crazy and crazier, so that wherever he lands can credibly be claimed to be a little better than what might have been under a Republican regime, even when Obama’s position is actually to the right of Bush or Reagan. Secondly, the bankster favorite Obama needs to distract the attention of his voter base with a loud and persistent clamor over cultural issues and sustained furor over instances of personal (but not institutional) racism among Republican candidates and supporters. Like in any production, every actor has a job to do, and everybody does their job.
Since the purpose of Sky Dancing is to discuss real issues, I really couldn’t let some of this burbling boiling social vibe stew stay on the fire without a bit of a stir. So, the links are there for you. Make of them what you will. Since this post has run so long, I want to share one more topic with you.
Back to economists where I’m not such a fish out of water. I had to point out this blog thread on frames by Jared Bernstein because I spent two huge blog posts on Saturday elucidating frames and their impact on markets and the economy. What a co-inky-dink! He talks about a related idea which is how the Republicans are ‘framing’ our historically progressive tax codes as class war fare instigated by that secret muslim, commie, Kenyan president of ours! The same things have been making him think of frames.
That said, ever since the R’s countered President Obama’s emphasis on fairness in the tax code with shrieks of “class warfare,” I’ve been thinking a lot about framing. These thoughts were amplified by this smart piece in today’s NYT, arguing that as the language of budgets (“fiscal sustainability,” “deficit reduction”) has replaced that of economic security, progressives have ceded key intellectual ground.
The piece compares, to great effect, the rhetoric of FDR during the Depression to that of today. But that led me to reflect on the
points Stan Greenberg made, as I reviewed them here. In this regard, the most salient difference in this context between today versus the days of FDR is not just the rhetoric or framing. It’s the underlying faith in American institutions, most notably government.
Greenberg’s point is that absent that faith, a positive frame, even if it’s based in fact (we really do have the right ideas re economic security and they really don’t) will fail to resonate.
This means progressives have some heavy lifting to do. Our work must be to re-establish faith in the institution of government…the belief that this institution is a force for good in your lives and can be more so. And that has to come from explanation, evidence, and effective implementation of government programs.
It also underscores the importance of the current fight for fairness: if people continue to believe that government has devolved into an ATM for the wealthy, an enforcer of the inequality-inducing policy agenda, and a bailer-outer of the rich and the reckless, no frame will be smart enough to convince them otherwise.
So, any way. What’s on your reading and blogging list today?












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