The West: Bellwether for the Mid-Term Elections?

With five weeks to go until Election Day, the national political environment seems to have stabilized enough to conduct some regional analysis of what’s likely to happen on November 2.  Let’s start today with the West, where highly competitive gubernatorial and Senate contests are occurring in at least seven states.

Much of the Pacific Coast seems relatively impervious to the Tea Party movement.  In California, hard-core conservative activist Chuck DeVore finished a relatively poor third in the Republican Senate primary, and gubernatorial candidate Steve Poizner, who tried to run to the right of Meg Whitman, was beaten badly.  Conservatives could not even mount a strong challenge to the much-derided RINO, Lt. Gov. Abel Maldonado.  In Washington state, another TP favorite, former pro football player Clint Didier, barely broke double figure percentages in a Senate Republican primary challenge to Dino Rossi.  And in the same state, one of the more moderate new House candidates in the country, Jaime Herrera, won her primary easily.  Alaska, of course, is the exception on the coast, since its long-powerful conservative movement knocked off Sen. Lisa Murkowski, who is now running as a write-in candidate in the general election.

In any event, Republicans have at best mixed prospects for major gains on the Pacific coast.  In CA, recent polls have given Barbara Boxer a significant lead over Carly Fiorina for the Senate seat, and despite Meg Whitman’s unprecedented spending, Jerry Brown is at worst tied with her as he begins his own media campaign in the governor’s race.  Republicans have a realistic shot at just one Democratic House seat in California, and Democrats are sure to hang onto control of both chambers in the state legislature.

In Washington state, Patty Murray appears to be opening up a modest but consistent lead over Rossi, who led her in some early polls.  While Herrera has a good shot at picking up an open Democratic House seat, only one incumbent Democrat, Rick Hansen, seems to be in jeopardy.  In Oregon, former Gov. John Kitzhaber is in a close race with Republican Chris Dudley for the governorship.

In Hawaii, Democrats have a better than even chance of flipping control of the governorship, with former congressman Neil Abercrombie a solid favorite over Lt. Gov. Duke Aoina, and of retaking Abercrombie’s House seat, which was lost in a special election earlier this year thanks to multiple Democratic candidates.

In Alaska, Democratic Senate candidate Scott McAdams remains underfunded and little-known; his fate almost certainly depends on the viability of Murkowski’s write-in campaign down the stretch.

Moving eastward from the Pacific, Colorado is another hotly disputed state.  Tea Party favorite Ken Buck has been leading Sen. Michael Bennet in early general election polls, but this race is likely to tighten up.  John Hickenlooper is almost certain to hold the governorship for Democrats thanks to the conservative split between Republican nominee Don Maes and former congressman Tom Tancredo, who is running on the Constitution Party ballot.   Republicans think they have a shot at taking two Democratic House seats, though their best chance is against freshman congresswoman Betsy Markey.   Turning south to New Mexico, Republican gubernatorial candidate Susana Martinez has recently taken a steady lead in the polls against Lt. Gov. Diane Denish, who once looked invincible, and two Democratic House members, Harry Teague and Martin Heinrich, in some peril.  In Arizona, Sen. John McCain and Gov. Jan Brewer look safe to hold onto their seats for the GOP, and though Republicans have visions of picking up as many as three House seats, all three Democrats—Gabby Giffords, Anne Kirkpatrick and Harry Mitchell, are in reasonably strong condition.

Finally, in Nevada, one of the top national races looks almost certain to go right down to the wire, with Sen. Harry Reid and Tea Party champion Sharron Angle running neck and neck in virtually every post-primary poll.  Reid would probably be doomed against any other Republican opponent, but Angle’s long history of eccentric issue positions has given him a new lease on life.

All in all, the West could prove to be a national bellwether. A true Republican tsunami in the region could produce a net gain of four Senate seats (Washington, California, Colorado and Nevada), two governorships (Oregon and New Mexico), and nine House seats.  On the other hand, a stronger-than-expected Democratic performance could keep Republicans from gaining any net Senate seats, and could actually give Democrats a net gain of one gubernatorial seat (Wyoming looks to be a certain Republican gubernatorial pickup, but that could be offset by a Jerry Brown win in California and an Abercrombie win in Hawaii). None of the Western House races in which Republicans now look strong is a slam-dunk.

One regional factor that use to bedevil strategists is now of declining importance: the hope or fear that early returns from the eastern and central times zones could influence final turnout in very close races.  That’s because voting by mail is increasingly important in the West, with all ballots in OR and WA; most in Colorado; and over half in California, now being cast by mail.  The dominance of voting by mail will also significantly limit the impact of very late campaign activity in many states.  If Meg Whitman’s going to hit her target of spending $150 million in personal funds in the CA gubernatorial race, she’ll probably hit it well before November 2.

Arizona

White House National Economic Council to Join PPI at Infrastructure Forum

NEWS RELEASE
FOR IMMEDIATE RELEASE
September 28, 2010

PRESS CONTACT:
Steven Chlapecka—schlapecka@ppionline.org, T: 202.525.3931

Deputy Director Jason Furman Joins Roundtable Discussion on Jobs, Innovation and Competitiveness

 

WASHINGTON, D.C. – Jason Furman, deputy director of the White House National Economic Council, will join the Progressive Policy Institute (PPI) for a roundtable discussion at the Washington Hilton at 9 a.m. on Friday, Oct. 1 as part of the 2nd Annual North American Strategic Infrastructure Forum. The discussion will focus on jobs, innovation and retooling the American economy for growth and global competition.

The roundtable will feature panelists New York Times Columnist Tom Friedman, LIUNA General President Terence M. O’Sullivan and BrightSource Energy CEO John Woolard. It will be moderated by Wall Street Journal Economics Editor David Wessel.

“Furman’s participation underlines the forum as the premier showcase of strategic infrastructure investments needed to speed economic recovery and raise America’s game in global competition,” said Will Marshall, president of PPI. “We hope to challenge the nation’s political leaders to embrace a bolder strategy for retooling the American economy through crucial infrastructure projects like high-speed rail, clean cars and next-generation nuclear energy.”

Throughout the three-day conference, the Progressive Policy Institute and CG/LA Infrastructure will bring together leading thinkers from the public and private sectors in order to move North America’s most important projects forward, creating as many as six million new direct jobs.

Other featured speakers include: U.S. Senator Mark Warner, (D-Va.); U.S. Representative Rosa DeLauro, (D-Conn.); Leo Hindery Jr., Managing Partner, InterMedia Partners VII; Joe Boardman, President and CEO, Amtrak; U.S. Representative Dan Lipinski, (D-Ill.); Mark Reagan, Chairman, Global Construction Practice, Marsh Inc.; Chris Bertram, Assistant Secretary for Budget and Programs and Chief Financial Officer, Department of Transportation;Ev Ehrlich, President, ESC Company; and more.

WHERE: Washington Hilton, Columbia Hall 5 & 7, 1919 Connecticut Ave. NW, Washington, DC

WHEN: 9 – 10:30 a.m., Friday, Oct. 1

Download the entire day’s schedule.

How To Pay For High-Speed Rail

President Obama has been quite supportive of building high-speed rail. In January he announced an $8 billion down payment. But that was just a start. Building high-speed rail is a major investment, and the big question is: how will we pay for it, especially in a time of increasing federal deficits?

PPI Fellow Mark Reutter has some ideas, and he writes about them in a new policy memo that PPI is releasing today. The memo is called: “A smart way to finance high-speed rail: Restructuring the Highway Trust Fund into a results-driven transportation fund.”

Reutter argues that the money should come out of a cleaned-up Highway Trust Fund, which is currently larded with strategically aimless and costly programs:

Congress could easily allot $5 billion a year for HSR construction – without an increase in the gas tax – by cutting out earmarks and formula-based grants that now soak up billions of dollars, according to the General Accountability Office (GAO). Such fund reallocations could not only jumpstart HSR projects but serve as seed money to public-private partnerships to get the work done.

Although the Highway Trust Fund was once an elegant solution to funding the construction of the Interstate Highway System with gasoline taxes, it has over the years become more and more just a source of political pork.

Reutter thinks it’s time we use the almost $300 billion authorization (over six years) for building up genuine high-speed-rail routes. To that end, he makes seven specific policy recommendations for the next Highway Trust Fund re-authorization replacing the current authorization due to expire at the end of 2010.

  • Change the name of the Highway Trust Fund to the Surface Transportation Trust Fund to better reflect its new mission for the 21st century.
  • Allocate at least $5 billion in Trust Fund money in 2011 to HSR construction, with special emphasis on getting a demonstration high-speed line between Tampa and Orlando completed by 2015. (The Florida line received $1.25 billion in federal stimulus grants, but is still short of its $2.6 billion budget.)
  • Increase HSR expenditures in years 2012-15 (if a five-year spending bill is enacted) to reflect the increased demand for grants as more states develop passenger rail plans.
  • End the bureaucratic separation of highway and rail programs by establishing a team of planners to develop a HSR network in coordination with future highway building and restoration.
  • Direct the U.S. Department of Transportation and state authorities to examine routes where HSR could use Interstate and other publicly owned highway corridors for rights of way. This approach, already being used in the Tampa-Orlando corridor, would greatly lower land acquisition costs for new rail lines.
  • Base federal transportation decisions on clear analytic measures of performance rather than earmarks – and competition between states instead of preset formulas – to produce the greatest return on taxpayer dollars.
  • Ensure that HSR, which uses about 20 percent less energy per passenger mile than automobiles, gets its fair share of any future revenues generated by carbon pricing.

Reutter also explores ways that policymakers can leverage private capital to augment public spending.

One approach is assembling land around potential HSR terminals for sale to private companies either operating or putting up part of the capital costs of HSR building.

Another is to encourage overseas operators with proven track records to invest in U.S. projects, at least initially, to allow U.S. companies to “learn the ropes” of building these highly sophisticated systems.

Ultimately, though, it’s going to take real political leadership. As Reutter concludes:

The Obama administration has repeatedly talked about its commitment to “green” technology and how fast trains could provide job growth and business opportunities to regions hard-hit by the loss of manufacturing. The administration needs to seize the initiative and make the case for HSR funding during the fall election cycle and in the next transportation reauthorization bill.

Reutter will be discussing high-speed rail Wednesday at a panel on “Keeping America on Track: The Future of High-Speed Rail,” which is part of the 2nd Annual North America Strategic Infrastructure Leadership Forum, co-sponsored by PPI.

A Smart Way to Finance High-Speed Rail: Restructuring the Highway Trust Fund into a results-driven transportation fund

Since announcing an $8 billion “down payment” for high-speed rail development, the Obama administration has been silent about how to pay for a program as ambitious as the Interstate Highway System.

The interstates cost more than $250 billion in current dollars to build. A fast train network, based on systems being developed worldwide, most noticeably in China, could be equally expensive.

So far, Congress has come up with $2.5 billion in general fund appropriations for high-speed rail (HSR) in 2010, and the administration has asked for $1 billion a year for the 2011-14 budgets. Such allocations are hardly enough to begin detailed engineering for California’s HSR proposal between Los Angeles and San Francisco, let alone the nine other intercity corridors that the White House has envisioned.

On Labor Day, President Obama proposed a $50billion transportation infrastructure program that would include 4,000 miles of rehabbed and new railway track. The proposal calls for integrating HSR projects into the next surface transportation bill, a promising step that would ensure some level of federal commitment to the program over the five- or six-year life of the bill. But again, the president did not specify how he would finance HSR or the larger infrastructure program other than to say that his administration “is committed to working with Congress to fully pay for the plan.”

The president’s reticence raises a legitimate question: Can the nation afford HSR in a time of looming federal deficits?

The answer is yes – financing HSR is entirely feasible, but will only happen if the administration and its congressional allies take bold steps to rebalance our transportation priorities. Fortunately, there is both a funding source and a road map for moving from today’s scattershot federal transportation spending to a results-driven enterprise.

The funding source is the Highway Trust Fund, with approximate funds of $52 billion a year. Allocating a portion of highway funds for rail construction is an equitable way to wean drivers away from auto travel by providing them with a faster, safer, and more environmentally sound alternative.
Congress could easily allot $5 billion a year for HSR construction – without an increase in the gas tax – by cutting out earmarks and formula-based grants that now soak up billions of dollars, according to the General Accountability Office (GAO). Such fund reallocations could not only jumpstart HSR projects but serve as seed money for public-private partnerships to get the work done.

Already, international rail operators have expressed interest in competing for high-speed train contracts in the U.S. But these groups are waiting for the Obama administration to lay out a comprehensive financing plan before structuring bids. The use of a well-established and reliable source of transportation financing could make these deals happen.

Download the entire memo.

A Crash Course in Infrastructure

Since we at PPI are focused today on infrastructure in advance of our big infrastructure forum Wednesday through Friday, we wanted to share some of our best posts over the last several months on infrastructure.

These posts also make an excellent crash course on what’s been happening lately in the world of infrastructure and high-speed rail in advance of this week’s conference.

This Week: The Road Forward on Infrastructure

This week, Progressive Fix will be focused on infrastructure.

That’s because the Progressive Policy Institute is co-hosting a major infrastructure forum this Wednesday through Friday here in Washington, D.C.

The timing of the forum couldn’t be better.  It comes less than a month after President Obama laid out a plan for $50 billion in U.S. infrastructure investment.

As my colleague Scott Thomasson wrote at the time:

The President is sending a strong message this week that his administration’s thinking has moved beyond another round of scattershot stimulus toward a real plan for sustainable growth.  Today’s speech suggests that the mantra for spending has changed from an obsession with injecting federal spending to thinking rationally about actually investing it.  That’s welcome news, and it’s not a moment too soon.

This week we’ll be gathering leading experts from the private and public sector to talk about how to build on the President’s initiative and about how investing in infrastructure can create jobs and strengthen the American economy for the 21st century.

The forum will feature leading thinkers on infrastructure like Tom Friedman, Leo Hindery Jr., Ev Ehlrich, and PPI Fellow Mark Reutter, as well as political leaders on infrastructure like Congressman Rosa L. DeLauro (D-CT), who has introduced legislation to create an infrastructure bank, and Sen. John Warner (D-VA)

We’ll be sponsoring panels on “High Speed Rail”, “Retooling the American Economy”, and “Financing Future Growth.”

The forum will also highlight the “top 100” strategic infrastructure projects and new PPI proposals for using public dollars to leverage private investment to create jobs and spur economic growth.

You can find a full program for the forum here. All events are at the Washington Hilton and open to the interested public.

To register for “Keeping America on Track: The Future of High-Speed Rail”, click here. For the North America Strategic Infrastructure Leadership Forum, click here.

We will also be unveiling two new policy memos this week, one on high-speed rail and a second on an infrastructure bank.

Finally, check back with the Progressive Fix over the course of the week for full coverage of the panels. I’ll be reporting on all the great ideas that are sure to come out of this incredible collection of leading lights.

So stay tuned as we lay out a vision for a road forward on infrastructure.

Photo credit: Jason

2nd Annual North America Strategic Infrastructure Leadership Forum

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September 29, 2010 / 9:00 – 10:30 am

Panel: Keeping America on Track: The Future of High-Speed Rail

Jefferson West Room, Washington Hilton

Introductory remarks by U.S. Representative Marcy Kaptur (D-OH)

Moderator:

  • Michael Riley, Managing Editor, Bloomberg Government

Panelists

  • Pierce Homer, Transportation Director, Moffatt & Nichol
  • Ken Orski, Editor and Publisher, Innovation Newsbriefs
  • Mark Reutter, Fellow, Progressive Policy Institute
  • Petra Todorovich, Director, America 2050

To register for “Keeping America on Track: The Future of High-Speed Rail”, click here.

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September 30, 2010 / 9:45 – 10:00 a.m.

Keynote Speech: Competitiveness Through Innovation

IBR East Room, Washington Hilton

Introduction by Will Marshall, President, Progressive Policy Institute

Featured speaker

  • Senator Mark Warner (D-Va.)



October 1, 2010 / 8:45 – 9:00 a.m.

Keynote Speech: Rebuilding America: Can Our Political System Deliver?

Columbia Hall 5 & 7, Washington Hilton

Featured speaker

  • Norman Anderson, CEO, CG/LA Infrastructure
  • Will Marshall, President, Progressive Policy Institute

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October 1, 2010 / 9:00 – 10:30 a.m.

Panel: Retooling the American Economy for Jobs, Innovation, and Competitiveness

Columbia Hall 5 & 7, Washington Hilton

Moderator:

  • David Wessel, Economics Editor, Wall Street Journal

Panelists

  • Tom Friedman, New York Times Columnist, Pulitzer-Prize Winning Author
  • Jason Furman, Deputy Director, National Economic Council, White House
  • Roderick Bennett, Advisor to the General President of the Laborers’ International Union of North America
  • John Woolard, CEO, Brightsource Energy

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October 1, 2010 / 10:45 a.m. – 12:15 p.m.

Panel: Financing Future Growth: How Do We Pay For New Projects?

Columbia Hall 5 & 7, Washington Hilton

Moderator:

  • Will Marshall, President, Progressive Policy Institute

Panelists

  • U.S. Representative Rosa L. DeLauro (D-CT), Sponsor of National Infrastructure Development Bank Act of 2009 (H.R. 2521)
  • Chris Bertram, Assistant Secretary for Budget and Programs and C.F.O., U.S. Department of Transportation
  • Leo Hindery, Jr., Investor, Managing Partner of InterMedia Partners VII; former President and CEO of AT&T Broadband; former President, Tele-Communications, Inc. (TCI)
  • Ev Ehrlich, Economist, President of ESC Company; former Under Secretary of Commerce for Economic Affairs

To register for the North America Strategic Infrastructure Leadership Forum, click here.

What Ever Happened to Opportunity Capitalism?

The number of billionaires based in New York City increased from to 56 to 57 from 2009 to 2010 and their collective net worth increased by $19 billion (from $183.5 billion to $202.65 billion), even as poverty soared, according to data recently released by Forbes magazine and analyzed by my organization, the New York City Coalition Against Hunger.

Given the soaring poverty, high unemployment, and stagnant wages for rank-and-file workers, these numbers show the folly of the politicians who want to further extend tax cuts for the mega-rich while doing nothing to prevent subway fair hikes – which are essentially tax increases on millions of working New Yorkers.

One of the main reasons that transit authorities in New York and elsewhere have to raise fares is that operating subsides from the federal government and state governments have been slashed, and one of the main reasons that neither the federal government nor the states have enough money for such subsidies or other vital purposes is that they no longer require the wealthiest to pay their fair share of taxes.

A person in New York working full-time at a minimum wage salary ($7.25 per hour) for 52 weeks would earn $15,080 in a year, often too little to feed their family. According to the Coalition’s calculations, that means that New York’s 57 billionaires collectively have as much money as the annual earnings of 13 million minimum wage workers. Those billionaires have an average net worth of $3.6 billion, which means that on average, each billionaire has as much money as the annual earnings of 232,000 minimum wage workers.

I am a committed capitalist. I firmly believe that our society should reward hard work and talent with success, as it once did for my grandparents and so many others after they came to this country. I don’t believe in government trying to guarantee equal outcomes, but government should ensure a level playing field for equal opportunity.

But does anyone believe that the main reason that the average New York City billionaire has 232,000 times as much money as the average minimum wage worker is that the billionaire works 232,000 times as hard or is 232,000 times as talented?

In the last few decades, all too often, wealth at the top has been generated by rigging the system in ways that actually hamper the long-term economic health of the society as a whole. We need to replace the crony capitalism of today with what I call the ‘opportunity capitalism’ of previous generations that gave families who worked hard and played by the rules the ability to get ahead.

And we need to once again ensure that the ultra-rich pay their fair share of taxes, which are necessary to maintain basic services. Government’s retreat from progressive taxation has resulted in food stamps funding cuts at the federal level, food pantry and soup kitchen cuts at the state level, and school lunch cuts at the city level. This is not just vague economic theory – this is real-life pain for hungry families.

Photo credit: Steve Wampler

In Defense of Jon Stewart’s Million Moderate March

Last Monday, I shared my optimism that in Jon Stewart’s “Rally to Restore Sanity” and Michael Bloomberg’s funding of moderate candidates, there was reason to hope that the center might hold after all, and maybe even become vital.

Over at the Chronicle of Higher Education Brainstorm blog, Laurie Essig had a very different take. Where I see a vital center, she sees a “muddled middle” that is “in fact continuing to represent the interests of corporations and corporate-controlled media against the interests of the majority of Americans.”

It’s worth spending a few minutes with Essig’s deconstruction of the so-called muddled middle, because it reflects a certain unfortunate way of thinking about the political center. It also offers an opportunity to defend what’s vital about the vital center.

Essig argues that: “The first thing that is clear is that the Muddled Middle wishes to merge the Left and the Right as ‘the same’”

I’m not quite sure where Professor Essig finds this clarity. I cannot think of a single political moderate who sees or even wishes to see the Left and the Right as being “the same.” They clearly represent very different political ideologies. This much is obvious to anyone with even half a brain.

But they do share one troubling similarity: they both view the world in black and white terms, and both equate any form of compromise with surrender.

In Essig’s view, and the view of many on the political far left, “the world’s greediest corporations continue to highjack our democracy.” Anybody (i.e. the moderates) who does not believe we are locked in an existential good-versus-evil struggle on the behalf of poor working class folks against the powerful interests is therefore complicit with the political right. If only the world were so black and white, it might be comforting to be sure that one was on the side of righteousness. But nothing is every that simple.

In my mind, the wisdom of the vital center is the ability to recognize two big things. First, that while the far Left and the far Right are fundamentally different in what they believe, a politics that forces everybody to choose one extreme or the other is a politics of stalled gridlock, brutal warfare, or both. We have a country to govern, and that country is quite divided, but also largely moderate. And if there is a true American tradition, it is pragmatism.

Second, the world is a complex place, and it rarely fits neatly into pure black and white. Individuals, corporations, and governments are all capable of both good and evil, of both brilliance and stupidity, of both innovation and inefficiency – often at the same time. To me, a sign of wisdom is being willing to accept this complexity, and to be humble about it. It is to be open to the possibility that one has not, in fact, figured it all out, and to be willing to experiment.

To borrow from Arthur Schlesinger Jr., “Problems will always torment us, because all important problems are insoluble: that is why they are important. The good comes from the continuing struggle to try and solve them, not from the vain hope of their solution.” (The Vital Center, p. 254)

So sign me up for Jon Stewart’s Million Moderate March. I’ll be there, with an open mind, eager to hear what everyone has to say.

photo credit: Dale Basler

Obama Finds His Voice – And America’s

Ordinarily, U.S. presidents don’t make headlines by extolling liberty and democracy before an international audience. But when President Obama did just that yesterday at the United Nations, it signaled a welcome shift from his previous reticence on these themes.

Here’s the key passage:

Yet experience shows us that history is on the side of liberty; that the strongest foundation for human progress lies in open economies, open societies, and open governments. To put it simply, democracy, more than any other form of government, delivers for our citizens. And I believe that truth will only grow stronger in a world where the borders between nations are blurred.

For sure, in his 2009 Cairo speech and elsewhere, the President has argued that individual freedom and democracy are universal aspirations. But in general, the administration’s voice has often seemed muted when it comes to standing up for liberal values.

Critics, for example, have cited Obama’s apparent downgrading of human rights in relations with China; U.S. eagerness to “reset” relations with Russia even as that country slides back into authoritarianism; and, the White House’s failure to offer full-throated support to Iran’s “green” movement which arose in protest over a rigged 2009 election.

The administration’s ambivalence about America’s responsibility to abet the spread of liberal democracy is no mystery. It’s a reaction to George W. Bush’s ill-conceived “freedom agenda”, which seemed to conflate U. S. democracy promotion with the use of force in Iraq and threats of “regime change” in hostile countries like Iran and North Korea. Bush’s unmodulated, even messianic, rhetoric about supporting democratic revolutions everywhere rattled America’s foes but also unnerved our friends as well.

President Obama has devoted his first two years to reassuring the world that America is returning to its tradition of cooperative internationalism, and he’s largely succeeded.  The U.S. “brand” has been refurbished and America’s global approval ratings have risen.

But in rectifying its predecessor’s mistakes, this administration sometimes leaned too far in the opposition direction. At times it seemed to embrace foreign policy “realism”, which emphasizes material interests and geopolitics and downplays the role of political values and structures in shaping countries’ international conduct.  In a telling omission, the administration has organized its foreign policy around the “three Ds” – diplomacy, development and defense – conspicuously excluding a fourth D for democracy.

But realism is antithetical to liberalism, which is why it has been most often associated with Republicans like Richard Nixon, Henry Kissinger, George H.W. Bush and Brent Scowcroft. From Woodrow Wilson’s day on, Democrats have argued that America can best advance its interests and ideals by throwing her weight on the side of individual rights, economic freedom and democracy. Their guiding philosophy is not realism but liberal internationalism, which holds that a freer world is a safer, more prosperous world.

Obama seemed to reaffirm that outlook yesterday. At the same time, the President continued to be clear that his administration’s approach to supporting democracy would be nothing like Bush’s. Picking up a theme introduced in recent speeches by Secretary of State Hillary Clinton, he promised greater U.S. support for embattled civil society organizations in authoritarian countries.

Finally, Obama stressed that promoting democracy is not something America should do unilaterally, but in concert with new democracies as well as old allies. That was a pointed challenge to countries like South Africa and some Latin American countries, who have been reluctant to speak out against human rights abuses and tyrannical rule in their own neighborhoods.

In all, it was an important speech that realigned U.S. foreign policy with core values that have defined it at its best, and led to its greatest triumphs.

photo credit: transplanted mountaineer

Forum To Introduce New Proposals On Rebuilding Infrastructure and Creating Jobs

NEWS RELEASE
FOR IMMEDIATE RELEASE
September 24, 2010

PRESS CONTACT:
Steven Chlapecka—schlapecka@ppionline.org, T: 202.525.3931

PPI and CG/LA Infrastructure Will Bring Together Leading Thinkers

WASHINGTON, D.C. – Just weeks after President Obama announced a major infrastructure initiative, the Progressive Policy Institute and CG/LA Infrastructure will bring together leading thinkers from the public and private sectors at the 2nd Annual North American Strategic Infrastructure Leadership Forum in Washington, DC, September 29–October 1.

The forum will highlight the “top 100” strategic infrastructure projects and new PPI proposals for using public dollars to leverage private investment to create jobs and spur economic growth.

“This forum is emerging as the premier showcase for the kinds of strategic infrastructure investments we need to speed economic recovery and raise America’s game in global competition,” said Will Marshall, president of PPI. “Our goal is to challenge the nation’s political leaders to embrace a bolder strategy for retooling the American economy, lest we fall farther behind in the race for high-speed rail, clean cars, next-generation nuclear energy and other growing markets.”

Featured speakers include: Tom Friedman, New York Times Columnist; Senator Mark Warner, (D-Va.); U.S. Representative Rosa DeLauro, (D-Conn.); Joe Boardman, President and CEO, Amtrak; Leo Hindery Jr., Managing Partner, InterMedia Partners VII; U.S. Representative Dan Lipinski, (D-Ill.); Mark Reagan, Chairman, Global Construction Practice, Marsh Inc.; John Woolard, CEO, Brightsource Energy; David Wessel, Economic Editor, Wall Street Journal; Chris Bertram, Assistant Secretary for Budget and Programs and Chief Financial Officer, Department of Transportation; Terence M. O’Sullivan, President, LIUNA; Ev Ehrlich, President, ESC Company; and more.

The three-day conference will also bring together more than 500 leading executives to showcase major proposed infrastructure projects across the continent.

MEDIA COVERAGE: The event is open to the press.  Media wishing to attend should contact Steven Chlapecka at 202.525.3931 or schlapecka@ppionline.org.

For further questions, please contact Steven Chlapecka at schlapecka@ppionline.org, 202.525.3931 (office), 202.556.1752 (cell).

# # #

Will the Republican Pledge Backfire?

As the battle for November continued to unfold this week, House Republicans unveiled their long-awaited, long-debated version of the 1994 classic Contract With America.  This one was called the Pledge to America.

In figuring out where to fall between cautious national GOP figures who basically would like to overturn the 2006 and 2008 elections and bring back the splendors of the Bush administration, and the elements of the conservative base, radicalized into the Tea Party Movement, who would like to turn back the clock quite a few decades further, the authors of the Pledge struck an interesting balance.  The Preamble and Forward of the document are full of fiery Tea Party rhetoric suggesting the illegitimacy of the Obama administration and the need for a radical restructuring of the federal government and the immediate abolition of deficits and debt.

But when the Pledge gets into is specifics, it immediately retreats into limited demands for total repeal of the Obama administration’s initiatives, along with a return to Bush tax and economic policies, and notably abandons the fiscal radicalism that so many Republican candidates this year are campaigning on.  There’s no balanced budget promise; no endorsement, even, of a constitutional Balanced Budget Amendment (now, as once before, boilerplate for GOP candidates); and certainly no mention of plans to take on major structural reforms, much less phase-outs, of Social Security and Medicare.

Indeed, the Pledge gives the impression that if the clock could be turned back to August of 2008, before the enactment of TARP, everything would be fine.  It will be most interesting to see how that approach squares with candidates and activists who think a return to 1933 is the only possible solution.

The Pledge does create a sort of whack-a-mole problem for Democrats seeking to exploit it.  Do they focus on the radical rhetoric that suggests a willingness to go after the basic New Deal/Great Society safety net?  Or do they focus on the details that suggest a more modest but equally vulnerable determination to bring back the policies that voters repudiated in 2006 and 2008?

In any event, the very existence of the Pledge offers some hope for Democrats struggling to make the midterm elections something other than a straight-up referendum on the status quo.  Under Republican governance, they will be able to argue, things could get worse, unless you really do pine for the salad days of 2006 or 1933.

The other big political development this week, which is still unfolding, is the decision by Senate Democrats against taking the lead on extending middle-class tax cuts and forcing Republicans to champion the extension of upper-class tax cuts, at least until after November.  There is still a chance the House will move first, but it’s unlikely given vocal Blue Dog opposition, and the decision is being widely derided as evidence of Democratic over-cautiousness, if not surrender, going into the midterms.  It’s an issue that will likely come up, however, in a lame duck congressional session after the elections, though with Republicans, who want to make all the Bush tax cuts permanent, holding a stronger hand.

There’s been some craziness in the polls this week, most notably a Quinnipiac survey showing the very off-the-wall Republican nominee for governor of New York, Carl Paladino, suddenly closing to double-digits against prohibitive Democratic front-runner Andrew Cuomo.   The Q-poll did not exactly reinforce its credibility by then releasing a survey showing another lowly-regarded Republican, Joe DioGuardi, trailing Sen. Kirsten Gillibrand, by just six percent (Siena, meanwhile, had Cuomo up by 33percent and Gillibrand up by 26percent).

Most survey results this week were more conventional.  Mason-Dixon showed Democrat Alex Sink with a 47-40 lead over Republican Rick Scott among likely voters in Florida.  The respected Field Poll, also moving to a likely voter model, showed a dead heat between Jerry Brown and Meg Whitman in the California gubernatorial race.  And a new national Pew poll showed an unusually large 10-point swing in the GOP’s favor between registered voters and likely voters—though interpretations of such results as reflecting an “enthusiasm gap” often ignore the structural reasons for a Republican advantage in midterm elections.

Finally, Google has come up with a very useful series of maps comparing some of the most credible handicappers’ projections of Senate, House, and gubernatorial elections.

No Retreat on Health Care

It’s only taken six months for President Obama’s landmark health reform bill to go from stupendous historic achievement to political blunder. That anyway is the fast-congealing consensus among pundits who follow the polls.

Count me as skeptical. Even if health care doesn’t poll well now, that doesn’t mean Obama was wrong to make it a top priority. But, in an atmosphere colored by public anger over bailouts and a sluggish economic recovery, there’s no doubt that the bill, for now at least, is more of an albatross for the president than an asset.

According to pollster Douglas Schoen, 81 percent of independents express concern about a federal takeover of health care, and nearly three-quarters say it’s important that candidates back a repeal of the law. He calls health care an “unambiguous disaster” for Obama.

And Bill Galston reports on a new Gallup survey that finds voters by 56-43 disapprove of the health bill.

An AP poll reveals much confusion about health reform. More than half the public wrongly believes the bill will raise taxes this year, and a quarter think it sets up bureaucratic “death panels” to decide who gets or doesn’t get care.

No wonder Obama hit the hustings yesterday to clear the record and remind people of why they wanted health care reform in the first place.

But it’s clear, right, that Obama made a mistake in pushing so hard for health care reform and it distracted him from what most Americans care about, namely, fixing the economy?  Actually, I don’t think it’s clear at all.

First, Obama pulled out all the stops to keep the economy from sliding into the abyss, but gets very little credit for it. On the contrary, his steps to rescue financial institutions are even less popular than health care, and his stimulus package doesn’t fare much better.

More fundamentally, presidents have very limited tools for reversing economic downturns. It’s not clear what more Obama could have done — or gotten a deeply polarized Congress to agree to do — even if they spent every waking hour thinking about the economy.

And let’s suppose Obama had followed the pundit’s advice, and put off health care until the economy recovered. Well, that would mean taking up health care in 2011 at the earliest. But how likely is it that the president could pass an historic health care reform after the midterm election, when his party is expected to suffer big losses and maybe even lose control of the House of Representatives?

Maybe the midterm will produce a new crop of GOP moderates, eager to pass universal health care in defiance of the party’s leadership, not to mention the Tea Party’s feral legions, but I doubt it.

The historical record is very clear on one point: the time for presidents to wrack up big legislative accomplishments comes early in their term, when their political and public support is at highest ebb. If Obama had instead waited and tried to husband his political capital for a later push, he would have had a lot less to spend.

Besides, the bad economy overshadows everything else. If we had six percent unemployment, people might feel better about health reform too. And there’s a good chance that once its provisions actually kick in, reform will grow in popularity.

But even if it doesn’t, Obama still did the right thing. America today doesn’t need artful dodgers in the White House; we need leaders willing to take on the hard cases. That inevitably offends powerful interests and voting groups. In fact, presidents who leave office about as popular as when they come in probably haven’t done very much.

So progressives should take heart, and not try to back away from health care reform. It was difficult, it was imperfect, but it was a moral and economic necessity to cover the uninsured and start getting runaway medical costs under control. It was the very rarest thing in contemporary U.S. politics — an authentic act of political leadership – and no amount of second-guessing and poll-driven punditry can change that.

photo credit:  apoxapox

Freight Railroads Throw a Switch on Obama’s Rail Plans

A report in the Wall Street Journal that freight railroads are balking at sharing their tracks with high-speed passenger trains highlights a long-standing dispute that threatens to stall the progress of high-speed rail. It’s an issue that needs to be resolved, and resolved soon.

The railroads fear that the high-speed program will hamstring freight operations at the very time when freight traffic is undergoing a renaissance and track capacity on many mainlines is limited.

While some of the posturing by the railroads has bordered on “public-be-damned” insolence, the bottom line is that they are right. Fast passenger trains are not compatible with slow freight trains on the same track. They have different track dynamics, different acceleration and braking ratios, and different weight characteristics.

What’s more, even if freight trains were banished from some routes, the existing rail plant, with its sharp curves, meandering river routes and tight clearances, is incompatible with high-speed (more than 150 mph) train service.

As PPI pointed out last January, the reality is that if we are going to get serious about high-speed rail, we need new, dedicated lines. We can learn from elsewhere: High-speed lines developed overseas all require a self-contained right of way free from interfering traffic.

Yet only California and Florida have proposed construction of dedicated new lines that would allow true high speeds; the other 31 projects awarded federal stimulus money involve upgrades of existing rail infrastructure.

The freight railroads – which own 99 percent of America’s 140,000 miles of line – are mindful of a potential backlash if they walk away from “stakeholder agreements” negotiated with state transportation officials to facilitate federal stimulus spending. But public promises of cooperation that mask private bickering and lengthy delays are a poor way to get the administration’s ambitious rail program up and running.

Amtrak’s Troubled History

 

This clash should come as no surprise. We already know from 40 years of Amtrak that sharing lines does not work well. Freight railroad executives have complained that passenger trains disrupt operating practices, delay freight traffic, and present safety risks. And from Amtrak’s perspective, a government report found that poor performance by freight railroads, including sidelining passenger trains to let freight trains pass, was a major cause of late-arriving Amtrak trains.

A clash became almost inevitable last May when the Federal Railroad Administration (FRA) issued guidelines that included penalties for railways failing to meet performance standards dependent on improved speeds for future passenger traffic.

Freight rail executives were stunned by what they perceived as federal interference with their private property, according to transportation analyst Ken Orski. Although Secretary of Transportation Ray LaHood tried to paper over the uproar by saying the FRA would be flexible, the die was cast as rail executives reconsidered the worth of cooperating with Washington.

So far, friction between railroad and government has taken place mostly on the state level, where railroads are negotiating the stakeholder agreements with state transportation officials needed to release federal stimulus funds.

But slow progress on these agreements means that FRA has distributed just $597 million of $8 billion in stimulus funds awarded in January to jumpstart the high-speed program, the Journal reported. Even when states and freight railroads have signed agreements, disputes remain over the speeds at which future passenger trains will be allowed to run.

For the most part, the freight rail industry wants upgraded service at no more than 90 mph. That’s less than half the speed trains travel in Europe and China and only marginally faster than the present 79 mph limit.

Seeking a Solution

Surely there’s a better way to untangle this problem. One approach would be for the rail industry to come clean. Through the Association of American Railroads, the industry could announce its support of dedicated passenger lines as a better use of public investment and throw its lobbying clout to achieve that end in Congress.

What’s more, the industry could back up its words by offering capital to facilitate construction of at least a demonstration line. After all, the American railroad wasn’t built by faint-hearted entrepreneurs who followed existing rights of way, which in the 19th century were old Indian trails. It was built by those who lit out for the new territory.

Photo credit:  David Sherret

“Obama’s Wars” and the November Election

Sure, everyone knows that this election season’s foil is the economy, stupid.  Much like 2008, no issue will dominate voters’ minds more than the relative emptiness of their pocketbooks.  But that quiet scraping you hear in the distance, my friends, is the sound of national security trying to claw its way into this year’s election.  Thanks to Bob Woodward’s new book, “Obama’s Wars”, it just might get a chip in the game.

Woodward’s book, previewed by articles today in the Washington Post (Woodward’s employer) and New York Times, apparently focuses on the administration’s decision-making process throughout the three-month Afghanistan strategy review that took place in late 2009.  The full volume isn’t due out until next week, but suffice it to say that the papers have gravitated to the more salacious details:

— ZING! Petraeus thinks Alexrod’s a spin doctor!
— BAM! Obama doesn’t listen to his generals!
— DOINK! Karzai is manic depressive and pops pills!

… or something.

With an election just weeks away, this is chum in shark-infested conservative waters.

But POW!  After digging past the juicy headlines, it’s evident that there’s a deeper message here, too: The progressive base, feeling like an abandoned date on prom-night over Obama’s Afghanistan decision and hardly motivated to support Democrats this fall, might just be heartened to learn of the president’s refusal to write the generals a blank check.

And if that means jazzing up more progressive election volunteers until election day, it might explain why the White House would grant Woodward such extensive access in the first place.  I mean, they didn’t let him sit down with the president to make them look bad.

Is America Really #1 in Innovation?

Last month the World Economic Forum released its 2010-2011 Global Competitiveness Report.  Among the 131 countries analyzed, the United States ranks fourth overall for global competitiveness (down from ranking second in 2009 and first in 2008) but ranks number one for innovation. Such a finding should comfort policy analysts and policy makers who have long augured America is losing its innovation edge. It seems, while we could do better in overall global competiveness, when it comes to innovation the United States is the gold standard.  All is well.

But what are studies like the Global Competitiveness Report actually measuring?  According the methodology section of the report, over two-thirds of the indicators are derived from what the WEF calls the “Executive Opinion Study.”  The survey asks business leaders throughout the world questions such as, “How would you rate the protection of property rights, including financial assets, in your country? [1 = very weak; 7 = very strong].”  For the report’s innovation subsection only one of the indicators—utility patents per million population—is based on hard data.

The WEF argues surveys help form qualitative data for metrics that hard data are otherwise unavailable.  But because of limited knowledge, and likely respondent biases, surveys such as the WEF’s risk being a better reflection of a nation’s reputation than its actual position.  Fareed Zakaria summed up this issue well when he said in a 2009 Newsweek column:

I’d always viewed the rankings that routinely show America on top as authoritative. But they may be misleading. Most traditional competitiveness studies use polls—of CEOs, scientists, investors—as a key part of their measurements. The World Economic Forum report, for example, relies upon surveys for almost two thirds of its data.  Like a star that still looks bright in the farthest reaches of the universe but has burned out at the core, America’s reputation is stronger than the hard data warrant.

To illustrate the point, ITIF released a report gauging international competitiveness and innovation that only used hard data.  In that report the United States ranks fifth for venture capital, while in the WEF’s 2009 study the United States ranked first.  The difference is our study takes total venture capital as a percent of GDP while WEF asks survey respondents “where is the best place to look for venture funds?”  The most likely reason for the discrepancy within the hard and survey data is that while the United States was clearly the best place for venture funds in the early 2000s, in the last decade that position has declined.  But, the opinions of executives seem to lag the empirical shift.

One may argue that in certain areas the only way to get data is to use survey data; in which case the question becomes: does the bias within these surveys cause more harm than simply leaving the indicator out?  But within the WEF’s study there are clearer cut examples of using survey data when hard data is readily available.  For example, the report asks respondents, “To what extent do companies in your country spend on R&D?”  Yet governments collect data on such spending, what purpose could there possibly be for using survey data instead of hard data?  (And for what it’s worth the United States ranks sixth amongst survey respondents, behind South Korea, Denmark, Luxembourg, Sweden, and Singapore—all of which have higher corporate R&D as a percent of GDP than the United States.)

Yes, the United States fares better then all countries for items such as “business impact of malaria” and “available airline seats per kilometer.”  However, as countries in Asia invest magnitudes more in clean energy than us, or as the majority of European nations offer a far more generous R&D tax credit, celebrations over our top ranking in innovation might be premature.

The bottom line is that it is nice to have a sterling reputation but it is even better for that reputation to survive rigorous inquiry.

photo credit:  Wolfie Fox