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Time For Another Victory Lap

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I’m no cheerleader for President Obama.  Since he first became our Disappointer-In-Chief, I have vigorously voiced my complaints about his decisions.  At the end of President Obama’s first month in office, I expressed concern that his following the advice of “Turbo” Tim Geithner and Larry Summers was putting the welfare (pun intended) of the Wall Street banks ahead of the livelihoods of those who voted for him.  I lamented that this path would lead us to a ten-year, Japanese-style recession.  By September of 2010, it was obvious that those early decisions by the new President would prove disastrous for the Democrats at the mid-term elections.  At that point, I repeated my belief that Obama had been listening to the wrong people when he decided to limit spending on the economic stimulus package to approximately half of what was necessary to end the economic crisis:

Even before the stimulus bill was signed into law, the administration had been warned, by way of an article in Bloomberg News, that a survey of fifty economists revealed that the proposed $787 billion stimulus package would be inadequate.

Last week, I was about to write a piece, describing that decision as “Obama’s Tora Bora moment”.  When I sat down at my computer just after 11 p.m. on Sunday, I realized that the timing wouldn’t have been appropriate for such a metaphor.  The President was about to make his historic speech, announcing that Osama Bin Laden had been killed.  Just as many have criticized the Obama administration’s handling of the disaster in the Gulf of Corexit as “Obama’s Katrina Moment”, I believe that the President’s decision to “punt” on the stimulus – by holding it at $862 billion and relying on the Federal Reserve to “play defense” with quantitative easing programs – was a mistake, similar in magnitude to that of allowing Bin Laden to escape at Tora Bora.  The consequences have been enormously expensive (simply adding the $600 billion cost of QE 2 alone to a better-planned stimulus program would have reduced our current unemployment level to approximately 5%).  Beyond that, the advocates of “Austerian” economics have scared everyone in Washington into the belief that the British approach is somehow the right idea – despite the fact that their economy is tanking.  Never mind the fact Australia’s stimulus program was successful and ended the recession in that country.

The Fox Ministry of Truth has brainwashed a good number of people into believing that Obama’s stimulus program (a/k/a the American Recovery and Reinvestment Act of 2009) was a complete failure.  You will never hear the Fox Ministry of Truth admit that prominent Republican economist Keith Hennessey, the former director of the National Economic Council under President George W. Bush, pointed out that the 2009 stimulus “increased economic growth above what it otherwise would have been”.  The Truth Ministry is not likely to concede that John Makin of the conservative think-tank, the American Enterprise Institute, published this statement at the AEI website:

Absent temporary fiscal stimulus and inventory rebuilding, which taken together added about 4 percentage points to U.S. growth, the economy would have contracted at about a 1 percent annual rate during the second half of 2009.

On the other hand, count me among those who are skeptical that the Federal Reserve’s monetary policy can have any impact on our current unemployment crisis (it hasn’t yet).

Many of Obama’s critics have complained that the Presidential appearance at Ground Zero was an inappropriate “victory lap” – despite the fact that George W. Bush was invited to the event (although he declined).  Not only was that victory lap appropriate – Obama is actually entitled to run another.   As E.J. Dionne pointed out, the controversial “nationalization” of the American auto industry (what should have been done to the Wall Street banks) has become a huge success:

The actual headlines make the point. “Demand for fuel-efficient cars helps GM to $3.2 billion profit,” declared The Washington Post.  “GM Reports Earnings Tripled in First Quarter, as Revenue Jumped 15 Percent,” reported The New York Times.

*   *   *

“Having the federal government involved in every aspect of the private sector is very dangerous,” Rep. Dan Burton, R-Ind., told Fox News in December 2008.  “In the long term it could cause us to become a quasi-socialist country.”  I don’t see any evidence that we have become a “quasi-socialist country,” just big profits.

Rep. Lamar Smith, R-Texas, called the bailout “the leading edge of the Obama administration’s war on capitalism,” while other members of Congress derided the president’s auto industry task force.  “Of course we know that nobody on the task force has any experience in the auto business, and we heard at the hearing many of them don’t even own cars,” declared Rep. Louie Gohmert, R-Texas, after a hearing on the bailout in May 2009. “And they’re dictating the auto industry for our future? What’s wrong with this picture?”

*   *   *

In the case of the car industry, allowing the market to operate without any intervention by government would have wiped out a large part of the business that is based in Midwestern states.  This irreversible decision would have damaged the economy, many communities and tens of thousands of families.

And contrary to the predictions of the critics, government officials were quite capable of working with the market in restructuring the industry. Government didn’t overturn capitalism.  It tempered the market at a moment when its “natural” forces were pushing toward catastrophe. Government had the resources to buy the industry time.

In fairness, President Obama has finally earned some bragging rights, after punting on health care, the stimulus and financial “reform”.  He knows his Republican opponents will never criticize him for his own “Tora Bora moment” – because to do so would require an admission that a more expensive economic stimulus was necessary in 2009.  As a result, it will be up to an Independent candidate or a Democratic challenger to Obama (less likely these days) to explain that the persistent economic crisis – our own “lost decade” – lingers on as a result of Obama’s “Tora Bora moment”.


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The Republicans Have No Choice

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March 2, 2009

Republican pundit Mike Murphy drove the message home on the March 1 telecast of NBC’s Meet The Press.  Demographics have changed since the Republican heyday of the Reagan era.  The Republican mission, message and strategy must adapt to our changing world.

On the other hand, last week brought us the CPAC (Conservative Political Action Convention) with its unique focus that has no relevance to current reality.  The Democratically-inclined pundits on MSNBC were delighted by the CPAC festivities. These commentators were left with visions of Sarah Palin as the 2012 Presidential candidate, dancing in their heads.

We’ve seen and heard plenty of opinions about the current leadership vacuum within the Republican Party.  Almost by default, he who makes the most noise, Rush Limbaugh, has found himself as the new, de facto leader of the Republicans.  Although he is not a candidate for anything, he enjoys more of a papal role with the diehard Republicans.  His message is amplified by people like Chris Matthews on MSNBC (who regularly discourses about how the Republicans always swing back to the “hard right”, when a moderate Presidential candidate fails).  Matthews then describes John McCain as the failed “moderate” and proceeds to (hopefully) set the stage for a “wing nut” Presidential candidate such as Sarah Palin or Bobby “The Exorcist” Jindal.  In either case, Obama gets re-elected — even if unemployment is at 42 percent and the Dow Jones is at 369.

The problem with Chris Matthews’ logic is that McCain pandered to the hard-right “base” in his quest for the White House and could not really be considered as a truly moderate candidate.  The Republicans could wise-up and move toward the center by 2012.  Besides:  They have no choice.

Here in Florida, we have a fait accompli.  Our next Senator, replacing the retiring Republican Senator Mel Martinez, will be our current Governor, Charlie Crist.  Governor Crist is a moderate Republican who enjoys a 73% approval rating.  Crist’s support of President Obama’s stimulus bill resulted in his appearance in Ft. Myers on February 10, to introduce the new President to an adoring crowd.  Governor Crist took lots of heat for that, from know-nothing conservative pundits.   Charlie Crist is laughing all the way to the Senate.  As the February 24 article by Aaron Blake on The Hill website pointed out:  the Democrats don’t have any strong challengers.  It’s a lost cause.  Here, “on the ground”, everyone knows it.

Meanwhile the “liberal” media are busy snarking at Crist, repeating the “gay” rumors that circulated prior to his recent marriage.  This hostility is probably due to the fact that Crist is on the record as opposing any change to Florida’s existing ban on gay adoption.  Any useful resemblance to former Republican Senator Larry Craig’s hypocrisy on gay issues would be a convenient “G-bomb” to throw into an election campaign.   The Huffington Post is big on these “gay” rumors, as is the current incarnation of Wonkette.  What those people don’t know is that the rumors never seemed to matter.  For example:  I’ve known and worked with many conservative Republicans who assumed those rumors were true.  Nevertheless, they still supported and voted for Charlie Crist.  It didn’t matter to them, nor did the issue ever matter to any significant number of people in this State.  Governor Crist had been married to a woman named Amanda Morrow in 1979.  That marriage lasted one year.  On December 12, 2008 he married Carole Rome.  Many of the rumor-mongers claim that this was a “staged” marriage, to advance Crist’s political career.  Nevertheless, you can trust my opinion, as a heterosexual bachelor of approximately the same age as Governor Crist …  If he is trying to “fake” a marriage at this point in his life … You will see him running out of the Governor’s mansion within a very short time, yelling:  “All right!  I’m GAY!  I CONFESS!!!  I’m GAAAAAAAAAYYY!!!”

I don’t believe we will see that happen.  Beyond that, I’m really disappointed that purportedly “gay-friendly” media would be taking these cheap shots at Charlie Crist.  He is going to be our next Senator and he will win because a majority of Democratic voters will support his candidacy.  Deal with it.

The next question is whether the Republican party will finally figure out, after the 2010 election, that there is a trend here.  Republicans are faced with the likelihood that future campaign strategies will nullify the efforts of extremists whose political ambitions have been based on the existence of the political primary system.  As Newsweek‘s Howard Fineman has often discussed, the political primary system, by its nature, results in extremists from both sides getting much better traction than they would have in an open election.  Politicians are on to this.  Watch for more centrists running as independent candidates — and witness the disintegration of the “wing nut” dominance within the Republican Party.