TheCenterLane.com

© 2008 – 2020 John T. Burke, Jr.

Betting Against Obama

Comments Off on Betting Against Obama

Most Congressional Democrats and supporters of President Obama are anxious to see an end to the Bush tax cuts for the wealthy.  Nevertheless, as of this writing, the President has yet to even vote “present” on this issue.  Obama’s waffling throughout the tax cut debate has once again exposed his weak leadership skills, which are never overlooked by the people at Fox News:

“The players on the field want a game plan,” said one senior Democratic congressional aide who requested anonymity to be candid about caucus sentiment. “There’s an increasing frustration from members that there is not a plan … There is just tremendous frustration.  I mean, where are they?”

The aide noted that Senate Democrats, meeting behind closed doors Wednesday and most likely Thursday, intend to discuss the tax cuts, but there is one notable absence.

“Where is the White House?  There’s no one here talking to us today or tomorrow,” the aide fumed   .   .   .

*   *   *

Democrats are waiting for an express statement from the President, despite the fact that Obama opened the window on a temporary extension just after the midterm elections.

“We should have done this already.  Our bosses go home and are hounded about this.  I don’t get it.  Just extend the cuts for a few years and be done with it.  There are way too many fingers in the wind on this from both sides (of the aisle),” another senior Democratic aide involved in tax policy for years told Fox.

Robert Reich, former Secretary of Labor for President Clinton, began a recent blog posting with this observation:

The President says a Republican proposal to extend the Bush tax cuts to everyone for two years is a “basis for conversation.”  I hope this doesn’t mean another Obama cave-in.

Unfortunately, in all likelihood it does mean “another Obama cave-in”  — and it probably won’t be the last.  Professor Reich ended that piece with this rhetorical question:

If the President can’t or won’t take a stand now — when he still has a chance to prevail in the upcoming lame-duck Congress — when will he ever?

Answer:  Never (unless it means taking a stand – once again – in support of the Wall Street banks).

In the mean time, while Obama dithers, a group of 40 “Patriotic Millionaires” has stepped forward after writing a letter to the President, in which they urged him not to renew the Bush tax cuts for anyone earning more than $1 million a year.  Joe Conason included the text of that letter in a recent piece for Salon.  The Patriotic Millionaires expressed an opinion, which the President apparently fears might not be shared by his top campaign contributors:

We have done very well over the last several years.  Now, during our nation’s moment of need, we are eager to do our fair share.  We don’t need more tax cuts, and we understand that cutting our taxes will increase the deficit and the debt burden carried by other taxpayers.  The country needs to meet its financial obligations in a just and responsible way.

A similar stance was taken by billionaire financier Warren Buffet, during an interview conducted by Christiane Amanpour on the ABC News program This Week.  When confronted by Amanpour about the claim that those tax cuts for the very wealthy are what energize business and capitalism, Buffet gave this response:

“The rich are always going to say that, you know, just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you.  But that has not worked the last 10 years, and I hope the American public is catching on,” Buffett explained.

Writing for The Hill, Alexander Bolton discussed the frustrations experienced by Congressional Democrats, who are often left twisting in the wind while the President works out a strategy for traveling up a fork in the road:

Senate Democrats want President Obama to take a more hands-on role in legislative battles next year, when Republicans will have additional clout on Capitol Hill.

Democratic lawmakers say Obama could have done more to connect his legislative agenda to the concerns of voters — a shortcoming the president himself has admitted.

As the moment approaches for 2012 Presidential aspirants to declare their candidacy, Mr. Obama’s shortcomings are widely understood.  If the Democrats want to hold the White House, somebody with some guts should step forward pretty soon.


wordpress visitor


How The Democrats Self-Destruct

Comments Off on How The Democrats Self-Destruct

June 29, 2009

For the past few days, we have been inundated with news reports detailing the self-destructive behavior of the late singing sensation, Michael Jackson.  Perhaps it is this heightened awareness of self-destruction that is causing people to take a closer look at the self-destructive behavior taking place within the Democratic Party.

Most notable is the behavior of President Obama.  As his Inauguration approached, many people were surprised to learn that some principal players selected for Obama’s economic team were the same people responsible for creating this mess during the Clinton years.  The most prominent of these is Larry Summers, who is expected to replace Ben Bernanke as Chairman of the Federal Reserve in January.  On June 24, Robert Scheer, on his Truthdig website, bemoaned the fact that Obama is following the “trickle down” strategy of bailing out the big banks, while doing nothing to really solve the mortgage crisis:

It’s not working.  The Bush-Obama strategy of throwing trillions at the banks to solve the mortgage crisis is a huge bust.  The financial moguls, while tickled pink to have $1.25 trillion in toxic assets covered by the feds, along with hundreds of billions in direct handouts, are not using that money to turn around the free fall in housing foreclosures.

*    *    *

Here again the administration, continuing the Bush strategy, is working the wrong end of the problem.  Although President Obama was wise enough to at least launch a job stimulus program, a far greater amount of federal funding benefits Wall Street as opposed to Main Street.

*    *    *

Why was I so naive as to have expected this Democratic president to not do the bidding of the banks when the last president from that party joined the Republicans in giving the moguls everything they wanted?  Please, Obama, prove me wrong.

If President Obama doesn’t prove Robert Scheer wrong, Obama might find himself facing some hostile crowds at the “town hall” meetings as 2012 approaches.

The President might also be surprised to encounter large-scale Democratic grassroots disappointment over his proposed “overhaul” of the financial regulatory system.  As I pointed out on June 18, President Obama’s financial reform proposal, released on that date, drew immediate criticism for the expanded powers granted to the Federal Reserve.  On June 24, The Nation (which prides itself on having a liberal bias) ran a harshly critical piece by William Greider, entitled:  “Obama’s False Reform”.  In addition to criticizing the expanded powers granted to the Federal Reserve, Greider emphasized that the proposal did not contain any significant measures, or “hard rules”, to reform the financial system.  Beyond that, Greider took Obama to task for the false claim that the regulatory system was overwhelmed by “the speed, scope and sophistication of a 21st century global economy”.  The article emphasized the need to “slow down the rush to weak solutions” by taking the time to find out about the root causes of the breakdown and then to address those causes:

Give subpoena power to Elizabeth Warren the Congressional Oversight Board she chairs.  Hire some of those investigative reporters who have no political investment in digging deeper into the mulch.  What exactly went wrong?  Who has bloody hands?  Where are the fundamental reforms?  If the economy returns to “normal’ rather soon, the ardor for serious reform might dissipate with much left undone.  That is a small risk to take, especially if the alternative is enacting the bankers’ pallid version of reform.

President Obama is now taking pride for the passage in the House of Representatives of the “climate change bill” (H.R. 2454, the American Clean Energy and Security Act of 2009).  Despite the claim of House Majority Leader Steny H. Hoyer (D-Md.) that the bill’s passage in the House was “a transformative moment”, 44 Democrats voted against the bill.  One harsh critic of the bill is Democrat Dennis Kucinich.  Here’s some of what Mr. Kucinich had to say:

It won’t address the problem.  In fact, it might make the problem worse.  It sets targets that are too weak, especially in the short term, and sets about meeting those targets through Enron-style accounting methods.  It gives new life to one of the primary sources of the problem that should be on its way out — coal — by giving it record subsidies.  And it is rounded out with massive corporate giveaways at taxpayer expense.

*   *   *

.  .  .  the bill does not require any greenhouse gas reductions beyond current levels until 2030.

Worse yet is the Democrats’ fumbling and bumbling with their efforts at healthcare reform legislation.  Polling wiz Nate Silver of fivethirtyeight.com, did a meta-analysis of the polls conducted to assess public support for the so-called “public option”in healthcare coverage, wherein people have the option to buy health insurance from the government.  The insurance companies obviously aren’t interested in that sort of competition and they have launched advertising campaigns portraying it as controversial and flawed.  Nevertheless, Nate Silver’s report revealed that five of the six polls analyzed, demonstrated lopsided support for the public option, exceeding 60 percent.  Despite the strong popular support for the public option, Mr. Silver pointed out in another posting, how there is a great risk that Democrats might oppose the measure due to payoffs from lobbyists:

Lobbying contributions appear to have the largest marginal impact on middle-of-the-road Democrats.  Liberal Democrats are likely to hold firm to the public option unless they receive a lot of remuneration from healthcare PACs.  Conservative Democrats may not support the public option in the first place for ideological reasons, although money can certainly push them more firmly against it.  But the impact on mainline Democrats appears to be quite large:  if a mainline Democrat has received $60,000 from insurance PACs over the past six years, his likelihood of supporting the public option is cut roughly in half from 80 percent to 40 percent.

Awareness of this venality obviously has many commentators expressing outrage.  On June 23, Joe Conason wrote such an article for The New York Observer:

If Congress fails to enact health care reform this year –or if it enacts a sham reform designed to bail out corporate medicine while excluding the “public option” — then the public will rightly blame Democrats, who have no excuse for failure except their own cowardice and corruption.  The punishment inflicted by angry voters is likely to be reduced majorities in both the Senate and the House of Representatives — or even the restoration of Republican rule on Capitol Hill.

*  *  *

The excuses sound different, but all of these lawmakers have something in common — namely, their abject dependence on campaign contributions from the insurance and pharmaceutical corporations fighting against real reform.

*  *  *

Whenever Democratic politicians are confronted with this conflict between the public interest and their private fund-raising, they take offense at the implied insult.  They protest, as a spokesman for Senator Landrieu did, that they make policy decisions based on what is best for the people of their states, “not campaign contributions.”  But when health reform fails — or turns into a trough for their contributors, who will believe them?  And who will vote for them?

Those Democrats inclined to oppose the public option don’t appear to be too concerned about public indignation over their behavior.  Take California Senator Dianne Feinstein for example.  Do you really believe she gives a damn about voter outrage?  She was re-elected in 2006, despite criticism that as chair of the Senate Military Construction Appropriations subcommittee, she helped her husband, Iraq war profiteer Richard C. Blum, benefit from decisions she made as chair of that subcommittee.  So what if MoveOn.org is targeting her for ambivalence about the issue of healthcare reform?  MoveOn.org is also targeting other Democrats who are attempting to eliminate the public option.  If these officials have so much hubris as to believe that they can get away with scoffing at the public will, they had better start looking for new jobs now  . . . because the market isn’t very good.