Friday, November 5, 2010

Telling the Whole Truth About the U.S. Economy--and What Needs To Be Done About It: Paul Krugman Speaks

Fred R. Conrad/The New York Times
Paul Krugman

http://www.nytimes.com/2010/11/05/opinion/05krugman.html?src=ISMR_AP_LO_MST_FB

All,

Paul Krugman is one of the very few individuals in this country writing about politics and economics today who consistently and relentlessly tells the straight-up unadorned truth about exactly what is happening and why with real insight, clarity, depth, intelligence, courage and, yes, FOCUS. He also never fails to spell out precisely what a sound, practical alternative should be in his critiques. In this rancid climate I consider his tireless outstanding work to be positively intellectually and politically heroic. If only Obama had chosen this man as his major economic advisor instead of those corrupt Wall Street cronies and financial insider hacks Timothy Geithner and Laurence Summers (who took his crass opportunist ass back to Har-vard last month). But to choose someone like Krugman for his cabinet would have required the President to be a genuine progressive (or at least a real liberal) in the first place...Now it's too late. The thorough beatdown that the Republican and Tea Party right administered just two days ago absolutely ensures that NOTHING will be done on the legislative front for at least the next two years. Barack and the Democratic Party have seriously blown a major opportunity over the past two years to transform the direction of the country when the President and the DP controlled the Presidency and both houses of Congress. It's a major failure of political nerve and vision that can't possibly be papered over by merely claiming that the inheritance of the Bushwhacker's huge mess wouldn't allow for any other viable alternative(s). That ain't true and we shouldn't pretend that it is. The stakes are much too high in the present environment for those kind of easy excuses to be made without a serious challenge...

Kofi



OP-ED COLUMNIST
The Focus Hocus-Pocus
By PAUL KRUGMAN
November 4, 2010
New York Times

Democrats, declared Evan Bayh in an Op-Ed article on Wednesday in The Times, “overreached by focusing on health care rather than job creation during a severe recession.” Many others have been saying the same thing: the notion that the Obama administration erred by not focusing on the economy is hardening into conventional wisdom.

But I have no idea what, if anything, people mean when they say that. The whole focus on “focus” is, as I see it, an act of intellectual cowardice — a way to criticize President Obama’s record without explaining what you would have done differently.

After all, are people who say that Mr. Obama should have focused on the economy saying that he should have pursued a bigger stimulus package? Are they saying that he should have taken a tougher line with the banks? If not, what are they saying? That he should have walked around with furrowed brow muttering, “I’m focused, I’m focused”?

Mr. Obama’s problem wasn’t lack of focus; it was lack of audacity. At the start of his administration he settled for an economic plan that was far too weak. He compounded this original sin both by pretending that everything was on track and by adopting the rhetoric of his enemies.

The aftermath of major financial crises is almost always terrible: severe crises are typically followed by multiple years of very high unemployment. And when Mr. Obama took office, America had just suffered its worst financial crisis since the 1930s. What the nation needed, given this grim prospect, was a really ambitious recovery plan.

Could Mr. Obama actually have offered such a plan? He might not have been able to get a big plan through Congress, or at least not without using extraordinary political tactics. Still, he could have chosen to be bold — to make Plan A the passage of a truly adequate economic plan, with Plan B being to place blame for the economy’s troubles on Republicans if they succeeded in blocking such a plan.

But he chose a seemingly safer course: a medium-size stimulus package that was clearly not up to the task. And that’s not 20/20 hindsight. In early 2009, many economists, yours truly included, were more or less frantically warning that the administration’s proposals were nowhere near bold enough.

Worse, there was no Plan B. By late 2009, it was already obvious that the worriers had been right, that the program was much too small. Mr. Obama could have gone to the nation and said, “My predecessor left the economy in even worse shape than we realized, and we need further action.” But he didn’t. Instead, he and his officials continued to claim that their original plan was just right, damaging their credibility even further as the economy continued to fall short.

Meanwhile, the administration’s bank-friendly policies and rhetoric — dictated by fear of hurting financial confidence — ended up fueling populist anger, to the benefit of even more bank-friendly Republicans. Mr. Obama added to his problems by effectively conceding the argument over the role of government in a depressed economy.

I felt a sense of despair during Mr. Obama’s first State of the Union address, in which he declared that “families across the country are tightening their belts and making tough decisions. The federal government should do the same.” Not only was this bad economics — right now the government must spend, because the private sector can’t or won’t — it was almost a verbatim repeat of what John Boehner, the soon-to-be House speaker, said when attacking the original stimulus. If the president won’t speak up for his own economic philosophy, who will?

So where, in this story, does “focus” come in? Lack of nerve? Yes. Lack of courage in one’s own convictions? Definitely. Lack of focus? No.

And why would failing to tackle health care have produced a better outcome? The focus people never explain.

Of course, there’s a subtext to the whole line that health reform was a mistake: namely, that Democrats should stop acting like Democrats and go back to being Republicans-lite. Parse what people like Mr. Bayh are saying, and it amounts to demanding that Mr. Obama spend the next two years cringing and admitting that conservatives were right.

There is an alternative: Mr. Obama can take a stand.

For one thing, he still has the ability to engineer significant relief to homeowners, one area where his administration completely dropped the ball during its first two years. Beyond that, Plan B is still available. He can propose real measures to create jobs and aid the unemployed and put Republicans on the spot for standing in the way of the help Americans need.

Would taking such a stand be politically risky? Yes, of course. But Mr. Obama’s economic policy ended up being a political disaster precisely because he tried to play it safe. It’s time for him to try something different.

Wednesday, November 3, 2010

What Happened and Why: The 2010 Midterm Elections and the Future of Progressive Reform in the United States


All,

More than a huge political tsunami this vicious national beatdown of President Obama and the Democratic Party by one of the most demagogic and virulently racist/sexist/anti-labor/homophobic and openly corporate political parties in American history--The Republican/Tea Party of 2009 and 2010--is a devastating and deeply dismissive repudiation of the dire necessity for genuinely progressive political and economic reform in the United States. Coupled with the shocking ineptitude, hubris, timidity, cowardice, and strategic/tactical blunders of the Obama administration was the predictable venality, greed, hatred, hypocrisy, dishonesty, racism, and shameless fear mongering of the President's vile and thuggish rightwing opposition in both the so-called "mainstream" GOP and the corporate sponsored faux grassroots white nativist xenophobia and cultural/social psychosis of the "Tea Party." It was this deadly and highly disturbing combination of political, economic, and cultural tensions, forces, attitudes, values, postures, and ideological/intellectual stances that have made a gigantic mess of the first two years of President Obama's tenure in the White House and has left millions of poor, working, and middle class Americans drowning in an ocean of unemployment, debt, foreclosures, endless wars, and the ongoing rapacious exploitation of corporations, the banks, and Wall Street. I suppose one could pretend if they wished that Obama and the Democratic Party were ultimately not quite as "responsible" as the Republicans and the Tea Baggers for this catastrophe (after all Obama and his "team" DID inherit this mess from the absolute worst and most criminal President in U.S. history) but when all is said and done the ugly truth is that the current President must still find an independent and courageous way to govern no matter what and on that score it's clear to me as it is to many others (who like me ALSO supported and helped elect this President) that he has come up rather short in properly addressing many aspects of the current epic crisis. In addition the disorganized, faltering, and frankly very weak performance of the American left generally has also been a major contributing factor in the debacle we find ourselves shackled with at this point. So there is more than enough "blame" to go around--that's for sure...

That said however it is not enough that we merely point out what has gone so wrong and why-- or merely identify who is responsible-- but that any self respecting critique or analysis must also include a lucid, rational, and mature idea and vision of how we must proceed as we move forward. To say that there is a LOT of work to do in this regard is obviously a huge understatement at this point. However, in the days and weeks ahead I think it is paramount that we all precisely dedicate ourselves to doing just that...Clearly that is ultimately the only kind of (real) change that one can truly "believe in"...

Kofi


G.O.P. Captures House, but Not Senate




Stephen Crowley/The New York Times

John A. Boehner, the House Republican leader, in an emotional moment during a victory gathering for the National Republican Congressional Committee in Washington. More Photos »

By JEFF ZELENY
November 2, 2010
New York Times

Republicans captured control of the House of Representatives on Tuesday and expanded their voice in the Senate, riding a wave of voter discontent as they dealt a setback to President Obama just two years after his triumphal victory.

A Republican resurgence, propelled by deep economic worries and a forceful opposition to the Democratic agenda of health care and government spending, delivered defeats to House Democrats from the Northeast to the South and across the Midwest. The tide swept aside dozens of lawmakers, regardless of their seniority or their voting records, upending the balance of power for the second half of Mr. Obama’s term.

But Senator Harry Reid of Nevada, the Democratic leader, narrowly prevailed and his party hung onto control by winning hard-fought contests in California, Delaware, Connecticut and West Virginia. Republicans picked up at least six Democratic seats, including the one formerly held by Mr. Obama, and the party will welcome Marco Rubio of Florida and Rand Paul of Kentucky to their ranks, two candidates who were initially shunned by the establishment but beloved by the Tea Party movement.

“The American people’s voice was heard at the ballot box,” said Representative John A. Boehner of Ohio, who is positioned to become the next speaker of the House. “We have real work to do, and this is not the time for celebration.”

The president, who watched the election returns with a small set of advisers at the White House, called Mr. Boehner shortly after midnight to offer his congratulations and to talk about the way forward as Washington prepares for divided government. Republicans won at least 58 seats, not including those from some Western states where ballots were still being counted, surpassing the 52 seats the party won in the sweep of 1994.

The most expensive midterm election campaign in the nation’s history, fueled by a raft of contributions from outside interest groups and millions in donations to candidates in both parties, played out across a wide battleground that stretched from Alaska to Maine. The Republican tide swept into statehouse races, too, with Democrats poised to lose the majority of governorships, particularly those in key presidential swing states, like Ohio, where Gov. Ted Strickland was defeated.

One after another, once-unassailable Democrats like Senator Russ Feingold of Wisconsin, Representatives Ike Skelton of Missouri, John Spratt of South Carolina, Rick Boucher of Virginia and Chet Edwards of Texas fell to little-known Republican challengers.

“Voters sent a message that change has not happened fast enough,” said Tim Kaine, chairman of the Democratic National Committee.

Republicans did not achieve a perfect evening, losing races in several states they had once hoped to win, including the Senate contests in Delaware and Connecticut, because some candidates supported by the Tea Party movement knocked out establishment candidates to win their nominations. But they did score notable victories in some tight races, like Pat Toomey’s Senate run in Pennsylvania.

Senator Reid said in a speech that he was “more determined than ever” after his victory. “I know what it’s like to get back on your feet.”

The outcome on Tuesday was nothing short of a remarkable comeback for Republicans two years after they suffered a crushing defeat in the White House and four years after Democrats swept control of the House and Senate. It places the party back in the driver’s seat in terms of policy, posing new challenges to Mr. Obama as he faces a tough two years in his term, but also for Republicans — led by Mr. Boehner — as he suddenly finds himself in a position of responsibility, rather than being simply the outsider.

In the House, Republicans found victories in most corners of the country, including five seats in Pennsylvania, five in Ohio, at least three in Florida, Illinois and Virginia and two in Georgia. Democrats braced for the prospect of historic defeats, more than the 39 seats the Republicans needed to win control. Republicans reached their majority by taking seats east of the Mississippi even before late results flowed in from farther West.

Throughout the evening, in race after race, Republican challengers defeated Democratic incumbents, despite being at significant fund-raising disadvantages. Republican-oriented independent groups invariably came to the rescue, helping level of the playing field, including in Florida’s 24th Congressional District, in which Sandy Adams defeated Representative Suzanne Kosmas; Virginia’s 9th Congressional District, where Mr. Boucher, a 14-term incumbent, lost to Morgan Griffith; and Texas’s 17th Congressional District, in which Mr. Edwards, who was seeking his 11th term, succumbed to Bill Flores.

Democrats argued that the Republican triumph was far from complete, particularly in the Senate, pointing to the preservation of Mr. Reid and other races. In Delaware, Chris Coons defeated Christine O’Donnell, whose candidacy became a symbol of the unorthodox political candidates swept onto the ballot in Republican primary contests. In West Virginia, Gov. Joe Manchin III, a Democrat, triumphed over an insurgent Republican rival to fill the seat held for a half-century by Senator Robert C. Byrd. And in California, Senator Barbara Boxer overcame a vigorous challenge from Carly Fiorina, a Republican.

But Democrats conceded that their plans to increase voter turnout did not meet expectations, party strategists said, and extraordinary efforts that Mr. Obama made in the final days of the campaign appeared to have borne little fruit.

The president flew to Charlottesville, Va., on Friday evening, for instance, in hopes of rallying Democrats to support Representative Tom Perriello, a freshman who supported every piece of the administration’s agenda, but he was defeated despite the president’s appeals to Democrats in a state that he carried two years ago.

In governors’ races, Republicans won several contests in the nation’s middle. They held onto governorships in Texas, Nebraska and South Dakota, and had seized seats now occupied by Democrats in Tennessee, Michigan and Kansas. Sam Brownback, a United States Senator and Republican, easily took the Kansas post that Mark Parkinson, a former Republican turned Democrat, is leaving behind.

Though Democrats, who before the election held 26 governors’ seats compared to 24 for the Republicans, were expected to face losses, there were also bright spots. In New York, Attorney General Andrew M. Cuomo easily defeated the Republican, Carl P. Paladino, even as Republicans were expected to pick up seats in the state legislature and the congressional delegation. In Massachusetts, Gov. Deval Patrick won a second term.

As the election results rolled in, with Republicans picking up victories shortly after polls closed in states across the South, East and the Midwest, the House speaker, Nancy Pelosi, and other party leaders made urgent appeals through television interviews that there was still time for voters in other states to cast their ballots.

But the mood in Democratic quarters was glum, with few early signs of optimism in House or Senate races that were called early in the evening. Surveys that were conducted with voters across the country also provided little sense of hope for Democrats, with Republicans gaining a majority of independents, college-educated people and suburbanites — all groups that were part of the coalition of voters who supported Mr. Obama two years ago.

“We’ve come to take our government back,” Mr. Paul told cheering supporters who gathered in Bowling Green, Ky. “They say that the U.S. Senate is the world’s most deliberative body. I’m going to ask them to deliberate on this: The American people are unhappy with what’s going on in Washington.”

The election was a referendum on President Obama and the Democratic agenda, according to interviews with voters that were conducted for the National Election Pool, a consortium of television networks and The Associated Press, with a wide majority of the electorate saying that the country was seriously off track. Nearly nine in 10 voters said they were worried about the economy and about 4 in 10 said their family’s situation had worsened in the last two years.

The surveys found that voters were even more dissatisfied with Congress now than they were in 2006, when Democrats reclaimed control from the Republicans. Preliminary results also indicated an electorate far more conservative than four years ago, a sign of stronger turnout by people leaning toward Republicans.

Most voters said they believed Mr. Obama’s policies would hurt the country in the long run, rather than help it, and a large share of voters said they supported the Tea Party movement, which has backed insurgent candidates all across the country.

The Republican winds began blowing back in January when Democrats lost the seat long held by Senator Edward M. Kennedy of Massachusetts, with the victory of Scott P. Brown serving as a motivating force for the budding Tea Party movement and a burst of inspiration for Republican candidates across the country to step forward and challenge Democrats everywhere.

On Tuesday, the president did not leave the grounds of the White House, taking a respite from days of campaigning across the country, so he could meet with a circle of top advisers to plot a way forward for his administration and his own looming re-election campaign. The White House said Mr. Obama would hold a news conference on Wednesday to address the governing challenges that await the new Congress.

“My hope is that I can cooperate with Republicans,” Mr. Obama said in a radio interview on Tuesday. “But obviously, the kinds of compromises that will be made depends on what Capitol Hill looks like — who’s in charge.”

But even as the president was poised to offer a fresh commitment to bipartisanship, he spent the final hours of the midterm campaign trying to persuade Democrats in key states to take time to vote. From the Oval Office, Mr. Obama conducted one radio interview after another, urging black voters in particular to help preserve the party’s majority and his agenda.

“How well I’m able to move my agenda forward over the next couple of years is going to depend on folks back home having my back,” Mr. Obama said in an interview with the Chicago radio station WGCI, in which he made an unsuccessful appeal for voters to keep his former Senate seat in Democratic hands.

There was little Democratic terrain across the country that seemed immune to Republican encroachment, with many of the most competitive races being waged in states that Mr. Obama carried strongly only two years ago. From the president’s home state of Illinois to neighboring Iowa, Wisconsin, Indiana and Ohio — all places that were kind to the Democratic ticket in 2008 — Republicans worked aggressively to find new opportunities.

For all the drama surrounding the final day of the midterm campaign, more than 19 million Americans had voted before Tuesday, a trend that has grown with each election cycle over the last decade, as 32 states now offer a way for voters to practice democracy in far more convenient ways than simply waiting in line on Election Day.


Megan Thee-Brenan, David M. Herszenhorn and Michael Luo contributed reporting.


(From January 25, 2010)

To Speak Truth To Power One Must Be Honest and Prepared To Deal With the Consequences Of Such Action


All,

The following New York Times op-ed article was originally posted in this magazine nearly 10 months ago and its content is truer and more accurate than ever. It's worth taking another look at now especially in light of the absolute political disaster and the ominous electoral rise of the demagogic far right in the midterm elections yesterday...

Kofi


http://www.nytimes.com/2010/01/26/opinion/26herbert.html?th&emc=th

All,

This is an excellent and timely piece by Bob Herbert. The president seriously needs to read it...He might learn something important about himself...

Kofi


OP-ED COLUMNIST

Obama’s Credibility Gap
By BOB HERBERT
January 25, 2010
New York Times

Who is Barack Obama?

Americans are still looking for the answer, and if they don’t get it soon — or if they don’t like the answer — the president’s current political problems will look like a walk in the park.

Mr. Obama may be personally very appealing, but he has positioned himself all over the political map: the anti-Iraq war candidate who escalated the war in Afghanistan; the opponent of health insurance mandates who made a mandate to buy insurance the centerpiece of his plan; the president who stocked his administration with Wall Street insiders and went to the mat for the banks and big corporations, but who is now trying to present himself as a born-again populist.

Mr. Obama is in danger of being perceived as someone whose rhetoric, however skillful, cannot always be trusted. He is creating a credibility gap for himself, and if it widens much more he won’t be able to close it.

Mr. Obama’s campaign mantra was “change” and most of his supporters took that to mean that he would change the way business was done in Washington and that he would reverse the disastrous economic policies that favored mega-corporations and the very wealthy at the expense of the middle class and the poor.

“Tonight, more Americans are out of work, and more are working harder for less,” said Mr. Obama in his acceptance speech at the Democratic National Convention in August 2008. “More of you have lost your homes and even more are watching your home values plummet. More of you have cars you can’t afford to drive, credit card bills you can’t afford to pay, and tuition that’s beyond your reach.”

Voters watching the straight-arrow candidate delivering that speech, in the midst of the worst economic crisis since the Depression, would not logically have thought that an obsessive focus on health insurance would trump job creation as the top domestic priority of an Obama administration.

But that’s what happened. Moreover, questions were raised about Mr. Obama’s candor when he spoke about health care. In his acceptance speech, for example, candidate Obama took a verbal shot at John McCain, sharply criticizing him for offering “a health care plan that would actually tax people’s benefits.”

Now Mr. Obama favors a plan that would tax at least some people’s benefits. Mr. Obama also repeatedly said that policyholders who were pleased with their plans and happy with their doctors would be able to keep both under his reform proposals.

Well, that wasn’t necessarily so, as the president eventually acknowledged. There would undoubtedly be changes in some people’s coverage as a result of “reform,” and some of those changes would be substantial. At a forum sponsored by ABC News last summer, Mr. Obama backed off of his frequent promise that no changes would occur, saying only that “if you are happy with your plan, and if you are happy with your doctor, we don’t want you to have to change.”

These less-than-candid instances are emblematic of much bigger problems. Mr. Obama promised during the campaign that he would be a different kind of president, one who would preside over a more open, more high-minded administration that would be far more in touch with the economic needs of ordinary working Americans. But no sooner was he elected than he put together an economic team that would protect, above all, the interests of Wall Street, the pharmaceutical industry, the health insurance companies, and so on.

How can you look out for the interests of working people with Tim Geithner whispering in one ear and Larry Summers in the other?

Now with his poll numbers down and the Democrats’ filibuster-proof margin in the Senate about to vanish, Mr. Obama is trying again to position himself as a champion of the middle class. Suddenly, with the public appalled at the scandalous way the health care legislation was put together, and with Democrats facing a possible debacle in the fall, Mr. Obama is back in campaign mode. Every other utterance is about “fighting” for the middle class, “fighting” for jobs, “fighting” against the big bad banks.

The president who has been aloof and remote and a pushover for the health insurance and pharmaceutical industries, who has been locked in the troubling embrace of the Geithners and Summers and Ben Bernankes of the world, all of a sudden is a man of the people. But even as he is promising to fight for jobs, a very expensive proposition, he’s proposing a spending freeze that can only hurt job-creating efforts.

Mr. Obama will deliver his State of the Union address Wednesday night. The word is that he will offer some small bore assistance to the middle class. But more important than the content of this speech will be whether the president really means what he says. Americans want to know what he stands for, where his line in the sand is, what he’ll really fight for, and where he wants to lead this nation.

They want to know who their president really is.