To fully appreciate the scope of the Republicans’ midterm victory – and the nature of the Democrats’ political predicament – look at the map.
In Congressional contests, Democrats flipped just three House seats across the whole, wide country, and they were in the traditionally blue bastions of Delaware, Hawaii, and New Orleans. They won two open Senate seats (in Delaware and Connecticut) but those have been held by Democrats for decades.
Republicans advanced everywhere except the West Coast, where they picked up just one House seat in Washington state. Their gains were mostly concentrated in the Midwest rustbelt and the upper South. With the exception of black belt regions of the South, Latino-dominated south Texas, a smattering of blue in Iowa, Wisconsin and Minnesota, and a few Rocky Mountain districts, America’s vast interior is solidly red.
The West Coast (including Hawaii) and New York/New England (excepting New Hampshire) are the only remaining Democratic strongholds. The geography of defeat lends credence to GOP claims to represent the American heartland against bicoastal elites.
Republicans also won a passel of governorships and state legislatures across the Midwest. Democrats, in short, got slaughtered in working class America.
Republicans won working-class whites by a crushing, 63 to 34 percent margin. “They have taken the brunt of this recession, particularly the men, but Obama looked as if he was not engaged with it,” pollster Stan Greenberg told the National Journal. “Health care created a sense that he was not focused on the jobs issues and economic issues, and they were very angry.”
The Journal’s Ron Brownstein notes that, “In all, 47 House Democratic losses so far have come in districts in which the level of white college attainment lags the national average; just 16 came in districts that exceed that average. Talk about blue-collar blues.”
But in fact Democrats badly underperformed with white voters in general. College-educated whites also backed GOP candidates, by 58 to 40 percent. Where Democrats held onto their seats, they ran closer to even among college-educated white women while rolling up huge margins among minorities.
Nonetheless, the political map sends Democrats an unmistakable message: you are not connecting with ordinary working Americans. This is only in part a reflection of the current economic crisis, and the evident failure of President Obama’s policies to spur recovery. After all, blue collar whites have been alienated from Democrats for a generation. That should be a source of constant embarrassment to the party of the people.
Many liberal commentators, echoing Thomas Frank, have argued that blue collar voters’ antipathy to Democrats reflects their cultural conservatism. GOP demagoguery on “values” has blinded these voters to the reality that Democrats are on their side on economic issues. But the conspicuous absence of “God, guns, and gays” from the 2010 elections actually make them a pretty good test of this proposition. This time, there’s no question that blue collar voters rejected Democrats on economics rather than values.
All this underscores President Obama’s core challenge: crafting a credible plan for rebuilding America’s productive base. This isn’t a cyclical challenge; it’s not a matter of more public spending to boost demand. It’s a structural challenge which requires modernizing U.S. infrastructure, removing obstacles to entrepreneurship and innovation, seizing leadership in clean energy, and revamping tax and regulatory policies to promote economic growth.
Incredibly, however, some liberals are contemplating a blizzard of new federal regulations with the purported aim of putting Democrats on the side of the middle class by demonizing Wall Street banks and big business. The last thing blue collar Americans need is an economic morality play in which they are cast as victims. What they need, and what progressives owe them, is not a condescending populism, but a practical plan for economic success.
On the eve of the Iowa caucus in late 2007, Mark Schmitt, editor of The American Prospect, wrote an influential essay titled, “The ‘Theory of Change’ Primary”. The thesis of the piece was that Barack Obama’s frequent paeans to bipartisanship were not to be understood as the naivety of a political Pollyanna who would be rudely awakened upon taking the reins of power. Rather, Schmitt argued, appeals to bipartisanship were a tactic that President Obama would use to make Republicans an offer they couldn’t refuse: join with your colleagues across the aisle to enact the progressive policies the country demands, or reject bipartisanship and bear the wrath of voters in 2010.
Obama’s theory of change—as interpreted by Schmitt—has not worked out so well. Half the country supports repealing the healthcare reform bill, half say Democrats are too liberal, and half think that “the government is trying to do too many things that should be left to individuals and businesses”. While the lackluster economy clearly played a major role in ushering in the sweeping gains made by the GOP on Tuesday, progressives need to recognize that Democratic losses were not simply due to bad luck. Progressives overreached, which may or may not have been worth yesterday’s shellacking but which certainly calls for a change in strategy over the next two years. By taking seriously the theory-of-change strategy and recognizing that the 50-50 Nation continues to govern national politics, progressives can come back in 2012.
There are limits to blaming the economy for Democratic losses. Most strikingly, the exit polls last night revealed that Republicans won a majority of the national House vote even among the one in three voters who said something other than the economy was the most important issue facing the country. No, the theory-of-change strategy failed because the priorities Democrats pursued and the specific solutions they offered were not popular enough that Republicans felt any pressure to go along.
Nowhere was this truer than for health care reform, where controversies over government intervention into medical decisions, deficits, Medicare cuts, illegal immigration, and abortion gradually eroded the fragile support for reform among moderates. Democrats, oversimplifying polling that showed support for “health care reform”, convinced themselves that the time, budgetary resources, and energy spent on pushing through their particular vision of reform would trump the anemic jobs picture in the midterm elections. (And simmer down, public option advocates—there is absolutely no evidence that the purer original reform proposals would have produced a better outcome politically.)
Abandoning the “it’s-the-economy-stupid dodge” will be crucial for progressives moving forward, because in the most important respect the Administration finds itself right where it was in January of 2009. The country is mired in an economic downturn, with few positive signs on the horizon. Progressives can passively wait and see and allow the 2012 election to depend on what happens to the economy between now and then. Alternatively, by taking seriously the theory-of-change strategy, the President and Congressional Democrats can improve their chances of success next time and minimize the damage should the economy remain lousy.
Taking the theory-of-change strategy seriously means discarding the naively hopeful view that the 2008 election was a mandate for progressivism. As I wrote the night of that election, that view profoundly ignored the evidence from 2008 and political history since the Clinton years. The 50-50 Nation lives, and the Administration will have to stake out positions that are both popular and on which Republican-led gridlock will be met with disapproval from moderate voters. Such positions will often be met with howls of protest from the left, but if Democrats are smart, they will look to President Clinton’s success after 1994 as a model for how to get another bite at the apple in two years.
For instance, the easiest way to continue providing some stimulus to the economy is going to be via tax cuts. Rather than continuing to push for the expiration of the Bush tax cuts for upper-income taxpayers, Democrats should instead advocate for ex-budget director Peter Orszag’s proposed two-year extension of tax cuts for everyone. Such a stance would be both pro-stimulus and anti-deficit. Both positions are important, for while the economy is the overwhelming priority of voters, the broad question of the size, scope, and effectiveness of government is second, and this is where Democrats’ weakness really lies.
Democrats could also take a moderate position on foreclosures and the barrier to growth that underwater mortgages present. Rather than bailing out distressed homeowners—which polls show commands only weak support, due to perceptions of irresponsibility on the part of homeowners who took out mortgages they could not afford—Democrats could propose incentives for lenders and loan servicers to refinance the mortgages of distressed borrowers. For instance, Ben Bernanke has suggested allowing the Federal Housing Administration (FHA) to insure “shared equity” mortgages, whereby lenders would offer lower interest rates in return for an agreed-upon stake in the home’s equity upon purchase or refinancing. Democrats could also offer tax breaks or loans to make up the difference between the selling price of a home and a (bigger) mortgage payoff. This would help homeowners seeking to move for better economic opportunities who are not in danger of foreclosure or delinquency.
Welfare reform is up for reauthorization, and President Obama is in a strong position to preemptively lay out proposals that promote individual responsibility but that also fund the block grant more generously in response to data showing that the program’s growth has not nearly kept pace with the rise in joblessness. Furthermore, he could advocate responsible fatherhood provisions and other family-oriented policies, consistent with his past championing of such initiatives.
On immigration, Democrats should abandon their proposals advocating a general pathway to citizenship—a hopeless cause that will always be seen as rewarding law-breaking—and embrace the DREAM Act, coupled with tougher enforcement. The DREAM Act gives undocumented immigrants who arrived in the U.S. as minors the chance to earn residency if they serve in the military or complete some college. It addresses a fairly sympathetic group—the sons and daughters brought over the border by their parents, who never chose to break the law but who now face severe restrictions on their ability to get ahead through higher education because of their lack of documentation.
Finally, on deficit reduction, Democrats should use the housing crisis as an opportunity to begin a conversation around the distortions introduced into the economy by tax subsidies (such as the mortgage interest deduction’s complicity in the mortgage and financial crisis). Larry Summers has suggested that a global cap could be placed on the amount of itemized deductions a taxpayer could take, which would be progressive while avoiding fights over this tax provision or that one. The President can ask whether the federal government should really be subsidizing the purchase of second homes and vacation homes.
Democrats used the first two years of Obama’s first term to take advantage of a once-in-a-lifetime opportunity to make big changes in domestic policy. Progressives may differ in their evaluation of whether the cost has been and will be worth it, but what is clear is that if 2012 is to turn out differently than 2010, they will have to scale back their ambitions in the next two years.
Picture the seventh grader who just brought home a report card full of Cs and Ds. After getting chewed to pieces by his parents, he points to the lone bright spot:
“C’mon… It’s not all bad.. I did get a B+ in art!”
“Art? ART?!?!” the overbearing and despondent father retorts, “Tell me how you’re getting into college with a B+ in art!”
That’s where national security stands as a political issue after this election: A bright spot that the electorate doesn’t much care about. The message from this election on national security is therefore somewhat simple: National security is not on most voters’ radar screen right now, and will stay out of sight until national security is threatened.
In the broad range of national security topics, only Afghanistan so much as registered as an issue this cycle, and barely so: a paltry 8 percent of respondents to a CNN exit poll indicated that the war was their chief concern. Of those, 57 percent voted Democratic, which hints at a (very) quiet confidence in the president’s handling of the war.
Even as it’s not at the top of the issues list, the electorate still supports the president on national security, according to a mid-September Democracy Corps poll. Since there have been no major national security issues in the ensuing six weeks, we have to assume the president’s 53 percent approval rating (42 percent against) stands. In a way, it’s a remarkable achievement for a president whose party has historically suffered in the polls when it comes to national security, something we call the “national security confidence gap” around here.
Despite the positive polls, the Democratic base (possibly in bed with spending hawks in the Tea Party) will likely turn its focus again to Afghanistan. Following Obama’s kept-promise on Iraq, the left will still expect a draw-down begun by mid-2011 in order to come out in force for the re-elect. The drawdown won’t begin in earnest until 2012, but a mid-2011 announcement will at least adhere to the letter of the president’s promise. There’s some wiggle room for progress, but not much.
As for the new Congress, if their performance to date is any indication, Republicans will feel empowered in the wake of this election to pick a few fights. To date, they’ve gone out of their way to hit Obama politically on every attempted terrorist attack. Those attacks have largely wasted their breath to this point, failing to shake public confidence.
But long-standing conservative bugaboos of Gitmo, missile defense, foreign assistance and potentially DADT loom large. (I’ve heard rumors that DADT will definitely be addressed in the coming lame-duck period, however.) Buck McKeon (R-FL) is the incoming HASC chairman and a big proponent of missile defense, so watch that in particular.
This opens an interesting gambit on Pentagon spending: Some sort of defense budget restraint is coming, and there’s probably at least bipartisan acknowledgment of that general principle, but I’d be shocked if this loose consensus included HASC Republicans. News today suggests the military’s $50 billion intelligence budget will be stripped from the Pentagon’s topline and moved under the DNI’s control. Is this just a sleight-of-hand that will substitute $50b more of weapons spending?
These fights will be a painful distraction for the administration, but should not dilute the White House’s core competency: keeping the country safe. Various forces will continue to make progress in Afghanistan frustrating, but the White House should continue to tout its successful record of taking the fight to al Qaeda in Af/Pak, scoring important diplomatic victories against Iran, and defending Americans against terrorist attacks. Continue to do this, and progressives will continue to make strides against the national security confidence gap.
The smoke has cleared; only the maimed and the dead remain on the battlefield. They are, for the most part, Democrats. The job of carting them off will take weeks; the post-mortems will take even longer. And yet progressives — we with our fetish for soul-searching — should reject a new, indulgent round of autocritique, or at least recognize that there is only so much to reflect on. The electorate’s rejection of Democrats is a lot of things, but a referendum on the quality of our ideas it isn’t.
How can that be? Isn’t a rebuke of this magnitude by definition a rejection of a party’s ideas? Well, it is if the ideas were carefully inspected and considered by an informed electorate. But sobriety has been hard to come by this election season. And what we tend to forget is that, before our discourse got sucked into the Fox-powered Tea Party vortex, our ideas were actually popular across the spectrum. Far from dogmatic and divisive, the policies that progressives have pushed in recent years have been sane, sensible fixes that have drawn support from left, right, and center.
Take cap-and-trade. Only the truly delusional still think that climate change and our voracious consumption of fossil-based fuels are nothing to worry about. Cap-and-trade was an innovative solution to the problem, harnessing the market — and eschewing command-and-control regulation — to bring about a reduction in carbon emissions.
Or take health care reform. Despite cries from left and right, the Obama administration got reform generally correct, setting us on a path to cutting costs and increasing access, all while leaving a system that Americans had grown accustomed to intact.
Or infrastructure. Economists of all stripes believe that we need more stimulus to spur economic activity. Every American who uses our roads, bridges, and water supply knows that our infrastructure is crumbling. In light of those needs, President Obama pushed through billions in infrastructure spending and just recently proposed a new $50 billion infrastructure bill.
All of these are good ideas that have achieved a certain degree of consensus, or at least support from moderates. An original version of cap-and-trade was co-sponsored by John McCain and was backed by moderate Republicans in the prelapsarian days before the Tea Party’s rousing. Health-care reform: As Jonathan Cohn noted, “Obama’s plan closely mirrors three proposals that have attracted the support of Republicans who reside within the party’s mainstream” — the most prominent of whom is Mitt Romney, whose health-care legislation in Massachusetts is a fairly close sibling of the national reform passed this year. As for infrastructure, money for more spending on the nation’s backbone was supported by Republican senators like Kit Bond and George Voinovich (both retiring – no coincidence) in an earlier jobs bill vote.
In all these cases, an urgent public problem was identified, and sensible, pragmatic solutions were proposed. But we no longer have politics that can accommodate the sensible and the pragmatic. The same John McCain who co-sponsored cap-and-trade now rails against it. Romney and Republicans who supported previous iterations of the Obama health plan have nothing but calumny for reform. Meanwhile, the only news of conservatives dealing with infrastructure is when they shrink from the challenge, like Gov. Chris Christie of New Jersey backing away from a proposed, and badly needed, tunnel to New York.
Over and over again, progressives have come up with solutions to our problems that can be embraced by the moderate middle. But in these last two years, we’ve seen that no matter how good and moderate the ideas are, it doesn’t seem to matter.
In this dilemma lies the priority for the pragmatic progressive in these next two years. The fact is our ideas are good. They are sound. Progressives of the Obama era have brought an innovative, reformist sensibility to government that prizes empiricism and problem-solving above all. Yet the party across the table has pulled back and shown little interest in engaging. They want us to keep coming to the table with more concessions — while hardly offering any concessions of their own. If we keep whittling down our ideas to meet their whims, our ideas will be hardly worth enacting at all.
We must, of course, never slow our indefatigable search for new ideas – it is what defines progressivism. But the paramount challenge, for these next two years at any rate, is finding a new politics. The calls for a new radical center are all well and good, but we need to remember that that’s where our ideas already are. It’s the right that has abandoned that center. The consensus ideas of yesterday have become the Marxist plots of their 2010 campaign. And sensible ideas have little chance of growing in political soil parched of sense. Will the part of the conservative movement that still cares about fiscal responsibility, fact-based argument, and good-faith dialogue resurface? Will they make their voices heard against the know-nothings and the ideologues who have taken over their party?
No doubt progressives should continue to be on the lookout for all who are sober and serious about solving our nation’s problems. Challenges must be issued and coalitions of the willing must be sought. But we shouldn’t allow the emergent faction of hysteria and irresponsibility to sway us from a core conviction: that when one already occupies the reasonable center, standing one’s ground is the reasonable thing to do.
In the next few days, we’re going to be hearing a lot about how the Democrats lost “independents,” who, after breaking for Democrats in both 2006 and 2008, broke hard this time for Republicans, and for the third straight cycle, voted against the party in power.
And while it’s clear that “independents”, who now make up 37 percent of the electorate (as compared to 34 percent for registered Democrats and 29 percent for registered Republicans) hold the balance of power in American politics, understanding how to win them or even who they are and what they want is less clear.
In short, the best way to win back “independents” is this: Obama and the Dems need a little bit of patience, a lot of attention to pragmatic problem-solving, and the ability to resist the temptation to hunker down and move to the left.
But before getting to details of the political prescriptions, any discussion about the mood independents needs to begin with the observation that “independents” is a much more varied category than almost all pundits make it out to be. Many independents are actually shadow partisans, and a good number even see themselves are too far left or right for the two parties.
According to Gallup, only 43 percent of independents indentify themselves as “moderate,” while 35 percent say they are “conservative “and 18 percent say they are “liberal”. By comparison, 39 percent of Democrats and 24 percent of Republicans identify themselves as “moderate.” In other words, independents are hardly more “moderate” than Democrats.
In a recent survey, Pew broke independents down into five categories: “Shadow Republicans” (26 percent of independents); “Disaffected Republicans” (16 percent); “Shadow Democrats” (21 percent); “Doubting Democrats” (20 percent); and “Disengaged” (17 percent). As the names suggest, the shadow partisans vote somewhat predictably as partisans, while the Disaffected/Doubting class are slightly less reliably partisan, and the “Disengaged”, while most likely to be true independents, are also the least likely to vote – only 21 percent told Pew they were planning to vote this November.
So one way to think of independents is in terms of various degrees of independence. At the core are the true, true independents, who political scientists estimate to be about 10 percent of the electorate. These tend to be the most disaffected, disengaged voters, and lacking the ideological litmus tests of partisans, they also tend to be the most subject to the atmospherics and moods of how the country is doing and how even their own life is going rather than caring whether so-and-so voted the “right way” on some particular issue.
This probably goes a long way in explaining why they abandoned Democrats. Given the struggling economy, there is a desire to do something different, regardless of whether or not it makes sense – what Shankar Vedantam recently described as “action bias.” But it also means that they could turn just as quickly against Republicans, as they have in the past.
The lack of ideological attachment also suggests that while vague sloganeering against “big government” may make a good rallying cry, in all likelihood, few of these performance-based voters care all that passionately about the size of government. Rather, they are latching onto the most available explanation for the current sorry state of affairs. In their gut, they sense something is not working, but don’t have well-formed theories about what, exactly, it is that is not working. And, of course, they’d be hard-pressed to lay out exactly what they’d cut. They are not ideological crusaders. They are just generally cranky.
Expanding to the weak partisans – the so-called “Disaffected Republicans” and “Doubting Dems” – widens the category to bring in both the Republicans who probably dropped from the GOP column in 2006 and 2008 and either voted Dem or stayed home, and the Dems who are presumably crossing over or staying home this time (only 23 percent of the so-called “Doubting Democrats” told Pew that Obama’s policies have made economic conditions better, as compared to 50 percent for partisan or shadow Democrats). The weak partisans are more cynical and more anti-politician than their shadow partisan counterparts, and are accordingly probably more susceptible to the “throw the bums out” mood than their shadow partisans, who maintain a more interest in candidate positions and ideology.
Obviously, there is a mood of unusual restlessness in this country. This election marks the first time in almost 60 years that THREE consecutive elections resulted in House pick-ups of 20 or more seats for one party or the other (Dems picked up 31 seats in 2006, and 21 in 2008). One has to go back to 1952, when Republicans picked up 22 seats, marking the then-fifth consecutive House election of 20+ seat swings.
It’s also worth noting that 74 percent of independents now support the idea of a third party, up from 56 percent in 2003, and almost two-thirds (64 percent) of independents think that, “both parties care more about special interests than average Americans.” (Of course, it’s not just independents who want a third party – it’s also 47 percent of registered Republicans and 45 percent of registered Democrats, and overall, 58 percent of Americans who feel the two-party system is not providing adequate representation.)
So how can Democrats win back and re-mobilize these perpetually disaffected and disengaged types who broke for the Democrats in 2006 and 2008, and then either turned Republican in 2010 or just stayed home?
Partially, they just have to be patient and mature, since two big things are likely to happen in the next two years that will benefit them:
The economy is likely to improve, and Obama and the Dems should be able to take credit for this if they manage their communications strategy correctly, which will help with the performance-based calculus of these voters.
Republicans are likely to over-reach politically and spend too much time blocking administration initiatives, and holding investigations that lead nowhere. This may play well with the base, but it is unlikely to impress the non-ideological independents who are more interested in whether something is being done to help them pay their mortgage or get a job. If Obama and the Dems can offer a problem-solving oriented contrast to the ideological rampage of angry Republicans, they will benefit from looking like the adults in the room, just as they did in the 2008 election.
Will this be enough by itself to win back the sliver of disaffected independents who hold the keys to the balance of power? Maybe so, but maybe not.
To the extent that Obama and the Democrats want to win back the lost independents, they need to do their best to show them that they are reasonable, interested in making government work, and capable of making government work.
There will be great pressure, no doubt, from those who want Obama to draw a clear distinction with Republicans by pushing a more clearly left agenda. While this may excite the 20 percent or so of the electorate who are true liberals, it will all but ensure the kind of partisan gridlock that makes disaffected independents disaffected in the first place, further turning them off from politics (and making base voters even more important, which would be stupid, since the Republican base is bigger).
These swing independents don’t care much about ideology. They don’t pay attention to it, and they don’t vote on it. They care whether things are getting better and whether the folks in Washington look like they are trying to make things work.
There are plenty of sensible, centrist initiatives on important issues like energy, education, taxes, and infrastructure that we at PPI will be exploring over the next several months. We believe these solutions are both good policies and good politics for the same reason – because they are moderate approaches that can work, and in the process show some enough of the disaffected, non-ideological independents that Democrats are the party who is actually serious about governing.
The Republicans’ midterm triumph obviously is a demoralizing blow to President Obama, but it’s also a second chance. Unlike the scores of Democratic lawmakers who lost their seats, he has an opportunity to win back voters in the volatile center whose oscillations are keeping both parties on a short political leash.
How? By reclaiming the “postpartisan” reformer mantle that appealed so powerfully to these voters during his 2008 presidential campaign, and by crafting a more compelling plan to unleash U.S. economic dynamism.
Lest we forget, Obama ran as an outsider who promised to confront the dysfunctional political culture of Washington. While he’s redeemed other key campaign pledges, like ending torture, winding down the Iraq war, and passing comprehensive health care reform, he’s done little to change the way Washington works.
While independents overwhelmingly (by 15 points) backed Republicans, exit polls suggest they didn’t vote for the Tea Party’s radically libertarian philosophy, or for more political gridlock. In fact, they are defined in large part by their hostility to polarization and strident partisanship in Washington, and by their preference for performance over ideology.
Obama can begin to reestablish his standing with these voters by proposing structural fixes to our broken political system. And he can put the anti-government party on the spot by challenging Republicans to join him in reforming, rather than disabling, government.
Don’t mistake this for the familiar argument that Obama should “return to the center.” His challenge is not to reposition himself ideologically, it’s to break an ideological and partisan deadlock that’s paralyzing our government. For example, Obama could press for the federal clean elections law championed by Sen. Dick Durban that would finance Congressional campaigns with small donations matched by public contributions. He could try to work out a deal with Republicans to limit filibusters, which may now become a weapon in the hands of Senate Democrats (after all, he still has the veto). Or he could propose a lifetime ban on lobbying by ex-Members of Congress and their staffs.
And yes, fixing a broken political system entails working harder to find common ground with Republicans and restoring a civil tone in Washington, as Obama promised today in his post-election press conference today. With Republicans firmly in control of the House of Representatives, he doesn’t have any choice but to search for consensus and compromise – not unless he wants to put his presidency on hold for the next two years.
The flip side, of course, is that House Republicans can no longer claim powerlessness as an excuse for indulging in a politics of pure obstructionism. It’s doubtful they’ll be able to get away with serving up the usual ideological platitudes about limited government and fiscal probity. Now they’ll either have to share responsibility for governing with Obama, or come up with their own ideas for solving the nation’s urgent problems.
That could get ugly, at least at first. Fresh off their big victory, Republicans seem to be brimming with Tea Party hubris. Speaker-in-waiting John Boehner vowed this morning to make repealing “Obamacare” a top priority when the next Congress convenes in January. It’s tempting to say “bring it on,” because this would be a monumental mistake, an ideological overreach akin to Newt Gingrich’s attempts to shut down the federal government after the 1994 midterm. It would embroil the country again in another deeply divisive cage-match over health care reform, even as independents are yelling “focus on the economy” at the top of their lungs.
By developing a new blueprint to spur economic innovation and entrepreneurship, Obama can seize the political initiative, force Republicans to react to him, and quite possibly highlight significant fissures in GOP ranks. On deficit reduction, tax cuts, education, and immigration reform, Obama faces a similar challenge: bring the debate down from the GOP’s ideological nebulae to the concrete policy choices facing the country. He needs to keep pressure on the anti-government party to govern.
In the coming duel with House Republicans, Obama holds many high cards. He commands the bully pulpit, and with it, the opportunity to set the political agenda. He can use the veto to temper and force changes in GOP initiatives, as Bill Clinton did in vetoing welfare reform twice before getting a more progressive version. And if they won’t even come out to play, Obama can run against a “do-nothing” Congress just as Harry Truman did in 1948.
As many former presidents could attest, political life is full of second acts. President Obama’s is just beginning.
The Republican Party’s midterm sweep sets up a titanic test of wills between President Obama and the new GOP House majority. In the coming showdown, President Obama will enjoy at least four advantages.
The punditocracy apparently cannot resist the tendency to personalize political trends and developments. It has turned the midterm election into a political melodrama starring Barack Obama as the redeemer-President who inspired such soaring hopes in 2008, yet unaccountably failed to transform America in his first two years.
The saga of Obama agonistes may be more interesting, but public angst about the economy is what is really driving today’s election.
Sure, the president’s approval ratings are down (though not as low as Ronald Reagan’s or Bill Clinton’s at the same juncture). The public believes that the administration’s policies have failed to revive the economy, even while plunging the nation deeper in debt and, in the case of health care, expanding government’s reach.
But if unemployment were, at say, seven percent and trending downward, voters probably would see things in a more optimistic light. What’s oppressing the electorate is not the specter of big government, it’s the hangover from the 2007-2009 economic crisis, the worst to hit America since the Great Depression.
It’s not just lingering unemployment (9.6 percent). Americans lost roughly $11 trillion in net worth in those years, including about $4 trillion in home equity. Though stock prices rebounded somewhat, foreclosures continue apace and sales of new homes are at a 50-year low. Hammered by this “negative wealth effect,” U.S. households are shedding debt instead of spending, which depresses economic demand.
Our big banks still carry hundreds of billions of troubled loans on their books, and small businesses still have difficulty getting loans. U.S. businesses are keeping payrolls lean to cut costs, while sitting on nearly $2 trillion in retained earnings.
The federal government, meanwhile, seems to have exhausted the usual countercyclical remedies. With the national debt swelling rapidly, there’s little appetite in Washington for another dollop of stimulative spending (and will be even less if Republicans take over the House). The Federal Reserve says it’s ready for another round of “quantitative easing” – aka, printing money – but interest rates are already near zero.
The truth is, an economic downturn triggered by a financial crisis is much deeper and prolonged than an ordinary recession. No wonder voters are in a sour mood. They are lashing out at the party in power because the real culprits – the Republicans who were asleep at the switch as the housing and financial bubbles formed – aren’t around anymore to catch the blame. That’s not fair, but politics seldom is.
And while conventional wisdom pillories Obama for pushing health care or financial regulatory reform rather than spending every waking hour focusing obsessively on jobs, it’s not clear that would have made much of a difference.
The supposedly awesome powers of the presidency don’t include any magic levers for creating private sector jobs or dramatically speeding up recovery. In 1982, unemployment was even higher – 10.4 percent – on Election Day. Rather than promise instant relief, Reagan said the pain was necessary to wring inflation out of the economy and lay a stronger foundation for future growth. He urged Americans to “stay the course” and ride out the downturn. Republicans lost 26 House seats that year, but the economy eventually sprang back to life and propelled Reagan to a thumping reelection.
So Obama is right to stay calm, rather than running around the country trying to do something that doesn’t come naturally to him – emoting and feeling peoples’ pain. Instead, he should be crafting a new and more compelling economic narrative focused on unleashing American entrepreneurship and innovation. Forget Paul Krugman; Obama’s challenge is not to press for more stimulus or whine about economic inequality or posture as an anti-business populist, it’s to propose structural changes that will assure a broader, more robust economic recovery. These include an infrastructure bank, a new clean energy roadmap, pro-growth regulatory and tax reform (including corporate taxes), and a credible plan to restore fiscal stability once the economy regains strength.
Such a plan also is the best way to assure Democrats’ political recovery from the drubbing they will take today.
Political handicappers are so intent on trying to quantify Democratic losses in the midterm elections that they are missing the bigger picture: America’s radical center seems to be in a permanent state of revolt.
Democrats are going to get thrashed tomorrow, just as Republicans incurred huge losses in 2006 and 2008. The 2010 midterm will likely be the third successive election in which voters – or, more precisely, independent voters – rejected the ruling party. Grasping the significance of this meta-trend is more important that toting up the partisan body count.
Volatility across the broad center of the U.S. electorate has made this the age of the fleeting governing majority. Bill Clinton and the Democrats had one briefly from 1992-1994. Then George W. Bush and the Republicans held undivided power for six years before losing it in 2006.
“That’s never happened before in back-to-back administrations,” notes pollster Scott Rasmussen. The likely return to divided government signals, as Sarah Palin might put it, public “refudiation” of both political parties.
It’s no accident that this trend coincides with the “great sorting out,” the tendency of both parties to gravitate toward their respective ideological poles. This has left a large, discontented body of voters that increasingly feels disenfranchised by the two-party system. More Americans (37 percent) now identify as independents than as Democrats or Republicans.
Of course, independents are a diverse lot. The Pew Research Center, for example, breaks them down into categories (“shadow Republicans” and “doubting Democrats”) that suggest that a significant portion of them have residual partisan leanings. They’ve also grown more conservative since 2006, perhaps owing to GOP defections, and more skeptical of government’s ability to solve big problems.
Compared to core conservatives and liberals, however, independents are generally pragmatic and moderate in outlook, and almost by definition are alienated from the hyper-partisan, zero-sum game of politics as played in Washington. Above all, says Andy Kohut of the Pew Center, they put performance before ideology. They will vote against incumbents not out of a basic philosophical affinity with the Republicans, but because they believe Democratic policies have failed to spur jobs and economic growth.
In 2006, independents gave Democrats a 17-point margin, and control of Congress. Obama carried independents by 8 points in 2008, enough to give him the biggest majority won by a Democratic presidential candidate since Lyndon Johnson. Their defection from the progressive coalition over the past two years is the main reason Democrats are facing a beat-down tomorrow.
The silver lining for progressives in the midterm is that these swing voters could swing back their way over the next two years. According to a recent National Journal poll, independents still harbor reasonably warm feelings about President Obama. The key to winning them back is not to be more liberal or more moderate, it’s to govern effectively from the pragmatic center. That means building bipartisan support for tackling the nation’s most urgent problems: stalled job growth, eroding competitiveness, a massive overhang of debt, not to mention a careful winding down our overseas military engagements.
But if Obama and House Republicans can’t find a way to make forward progress on these fronts, the radical center will only become more disenchanted with the two-party duopoly. In that case, watch for a serious push to weld non-aligned and moderate voters into a “third force” in U.S. politics.
Imagine you are taking a shower. The water is too cold, so you turn it a little to the hot side. But hot turns out to be too hot, so you turn it a little to the cold side. But then cold turns out to be too cold. So you turn it back a little to the hot side, only for it to be too hot again. But no matter how you adjust, you can’t seem to find that nice comfortable middle temperature.
That seems to be about the dilemma a majority American people face with regard to their representatives in Congress. According to a new analysis of voters and their members of Congress, an estimated 90 percent of voters are less extreme than their elected representatives. Or put another way, only one in ten voters are more extreme then the folks representing them in Washington, DC.
But the problem is these 90 percent voters don’t have centrist candidates to choose from. Instead, they go from electing representatives who are too conservative for them, to electing representatives who are too liberal for them, to too conservative for them, every now and then trying to adjust, but always quite unsucessfully.
The authors of this analysis, Dartmouth political scientists Joseph Bafumi and Michael C. Herron, call this process “leapfrog representation” – since the median voter keeps getting leapfrogged when seats change parties. And what’s more compelling is that according to their analysis, even the median voter within each party is more moderate than the representatives. (If you want to know more about how they got these results, you can read a more detailed article I wrote about the study, or for the technically inclined, the authors’ academic version.)
One of the other neat things about this study was that the researchers were able to show that voters who also contribute to campaigns tend to be more extreme than those who don’t. Though they don’t have the data to prove this for sure, it does suggest that money may be doing some of the work of driving extremism. If you assume that money is important (a pretty safe assumption), it makes sense that candidates who appeal to extremes can raise more money, which helps them greatly at the early stages of a campaign when money is probably most important.
All of this, of course, makes for pretty depressing reading. It suggests that we are in a period of “leapfrog politics,” in which the moderate, middle-of-the-road voters who make up the majority of the electorate are going to keep switching from too liberal to too conservative, never quite able to find that happy medium ground (like the poor shower-taker switching from too hot to too cold). But it is a helpful way of understanding what’s going on, and a quite powerful analysis.
All the screaming (and some stomping) is coming to an end. Pundit upon pundit has beaten the drum of defeat for the Democratic Party. John Boehner can measure the drapes, the Tea Party’s here to stay, blah blah blah.
Don’t go sulking just yet, and you heard it here first: Democrats will hold the House. Let’s take a step back and look at the facts and races that tell the hidden story of this election.
1. Ideas Matter
To state the obvious, the Republicans haven’t offered a single concrete idea, asking voters to forget years of ill-gotten tax cuts and an ill-advised war. Do they really believe voters are ready to turn over trust to them again so quickly? They have played it safe and will take the anger vote and hope it gives them a majority. The public isn’t buying it—the Republican brand stands at just 23 percent approval
Many swing voters focus on the election over the weekend and realize that Democrats told the country what they would do two years ago and then did it—healthcare, stimulus, and financial regulation reform.
Some of these ideas might be more long-ball (e.g., healthcare) but Democrats will get more credit than you’d think for ideas and leadership. That’s why I’m betting that late-deciding voters will either break slightly to the Democrats or just stay home.
2. Campaigns matter
It might seem like every Democrat in the country is down 50 percent in the polls. The truth is that most all of these races will come down to one-to-four percent and that in the end, the actual hard work of grassroots fighting for the last vote is very much in favor of Democrats.
When I was at the DCCC in 1994, I was all too aware that Democrats lost 52 House seats by a grand total of 18,000 votes (not the overall vote but the difference in seats lost). Those votes are turned by a campaign ground game, and the Republicans don’t have a good one, thanks to the incredibly poor leadership of Michael Steele at the RNC. The DNC is pouring its all into GOTV efforts of this final stretch. When you look at the latest polls and see 10-to-12 percent undecided vote, it is most likely those voters will never show up at this point.
3. Seat by Seat
The “Pundit Consensus” is a 55-seat gain by Republicans, which would give them a 16-seat majority in the House. But if we examine those races on a case-by-case basis, the details indicate Republicans only stand to gain 35 seats, or four shy of a majority.
The top list of Democratic holds that all show up as losses currently.
Let’s start with 55 seats and work our way backwards:
New York
Three candidates on top of the ticket running 20-30 percent ahead of flawed Republican Senate candidates. Are we going to see vote splitting at the 25 percent level? That just doesn’t add up. The Republican Party in New York is in complete disarray and that will affect turnout in the closing days.
Take away at least the following pickups:
Owens -3rd party candidate getting between 5-15 percent of the vote
Murphy
Hall
Pickup now stands at 52.
Pennsylvania
Democratic well-oiled turnout machine will be prepared to do battle and hold:
Murphy
Kanjorski
Carney
Pickups now stand at 49.
New Hampshire
It’s doubtful that voters will return Charlie Bass to Congress, and marginal plus to have Paul Hodes on top of the ticket in this seat, who will bring that 1-to-2 percent extra vote out for Annie Kuster.
Pickups now stand at 48.
Georgia, Virginia and North Carolina
Marshall – he has been written off before, likely to hold with the tightening of the Governors race doing nothing but help.
Kissel won his seat by imploring serious grassroots organizing, and that still holds true for him this year. He ticked off many with his no votes on health care, but they are coming home to help him.
Nye is a strong candidate that votes his district and attracts strong crossover support.
Perriello — a strong case for getting credit for doing what’s right and standing up for your votes. Obama is coming to rally for him tonight.
Pickups now stand at 44.
Texas
Rodriguez—the demographics strongly favor a win by Ciro.
Pickups now stand at 43.
The Dakotas
Pomerory—unemployment is only at 4 percent in North Dakota, and Pomerory has a strong record of constituent service—the independent minded democrat holds on again.
Hurseth-Sandlin has voted her state and is running against a republican with flaws.
Pickups now stand at 41.
Idaho
Minnick – the Democrat-endorsed by the Tea Party, voted his district…he will hold on.
Pickups now stand at 40.
Illinois
Phil Hare, conservative district that continues to vote 55-60 percent for the democrat candidate for the House, spending is even and outside groups are almost spending more to badger the Republican.
Pickups now stand at 39.
Nevada
Dina Titus, another Dem who will get credit for standing up for her votes and showing leadership—and she does not have the negatives of Harry Reid. In the end she will hold this swing seat.
Pickups now stand at 38.
Colorado
John Salazar is strong candidate against weak Republican who received 37 percent of the vote last time he ran.
Pickups now stand at 37.
Those are the seats that the Democrats won’t lose. Now for the few they’ll actually flip:
Minnesota
Michele Bachman—she has the money and the media attention, but her actions and personality don’t fit the Midwest common sense approach of Minnesota…first upset of the night. Tarryl Clark with the big upset.
Pickups now stand at 36.
Florida
Joe Garcia has run a strong campaign against a very weak flawed-almost off the ballot- republican. Second somewhat surprise of Tuesday.
Pickups now stand at 35.
I could include other possible upsets (WA-8, CA, FL etc)
From leading on ideas, being prepared for the fight and the other side not offering any new ideas, lacking a true grassroots campaign and the voter being a lot smarter then pundits and the chatting inside the beltway give them credit for, the Democrats hold the House with a five-to-nine seat majority. You heard it here first.
I’m looking forward to attending your rally this Saturday, but like many, I’m not sure whether you are intending to simply produce a Daily Show-esque send-up of the whole rally-on-the-Mall concept, or whether this is the moment when you give the genuine rallying cry of “moderate!”
I know a lot of your fans are hoping you don’t undermine your hip satire with the mawkishness of actually caring. But I, for one, sincerely hope that you are actually serious here, and that you have every intention of giving voice to “the people who think shouting is annoying, counterproductive, and terrible for your throat,” as you call them.
We need you Jon. You may be our last best hope.
As you know and well understand, political debate in this country is actually nothing at all like debate. The two parties and their loyal acolytes keep yelling right past each other. They effectively inhabit two separate unbridgeable worlds, drifting further and further apart.
The activist bases of both parties have been spending the last 30 or so years trying create a black-and-white world where you are either with us or against us. Increasingly, they hold the key to elected offices, especially on the Republican side, by being the source of campaign resources and energy. Meanwhile, a media culture drawn to sharp conflicts always zooms in on angry yelling over possible consensus for a simple reason: the schoolyard knife fight makes better TV than the debating society, and every attention-seeking pundit and politico now knows this.
And yes, this has excited and energized the most extreme elements on both sides, who by dint of personality are attracted to moral clarity these Manichean struggles offer. But it has turned off those who are prefer compromise and open-mindedness, who don’t see the world in such stark terms, who, as you put it: “who feel that the loudest voices shouldn’t be the only ones that get heard.” Fewer and fewer Americans choose to identify themselves with either of the two major parties, and the plurality of Americans now think that neither party has “a clear plan for solving the country’s problems.”
The problem for political moderates is that there are so few leaders to turn to for inspiration.
But Jon, you know all this. It’s the basis for your satire. It’s why millions of viewers, especially those supposed disaffected young people who vote at significantly lower rates than their forebears, watch your show. You are the one who they trust.
I suspect that you are slightly uncomfortable with this power. You are, after all, a comedian at heart, the funny man who sits on the sidelines and says: you silly politicians, how you contradict and contort yourselves and say ridiculous things. Let us find the laughter in tragedy and thusly ease our sorrow over the sad fact that while we endlessly debate Christine O’Donnell’s latest gaffe, China is building a new city every sixteen seconds.
But sitting on the sidelines must also be frustrating. How can you curate the modern tragedy of American politics, day after day, and not think: why, the more I call attention to the idiocy, the more it metastasizes?
You have at your disposal the goodwill of millions of Americans. If you throw yourself into the political fray (as you may be about to, if this rally is indeed serious), you have the potential to make a major and I think quite positive impact on American political discourse. You are poised to be the leader of new moderate movement, one that rests on the premise of civil discourse, openness to reason, and an eagerness to actually solve problems.
I say, go for it. Make the most full-throated, heart-felt, call-to-reasonableness you can. Set up the moderate majority, or whatever you want to call it. Use your show and your brand to mobilize the millions of citizens who would pledge to support candidates who will adhere a platform of civility and open-mindedness and a spirit of pragmatic problem-solving – and who might even make it cool once more to solve problems instead of simply firing up the base. Be an explicit force for counter-polarization.
I know it’s a big task. But look around you. Glenn Beck and his merry band of truth-benders at Fox News are mobilizing the armies of cranky crazies to the right, and the loudest voices on the left are those complaining that Obama is a sell-out. This country faces major, generational challenges of transitioning to a 21st-century economy and solving a looming deficit and entitlement crisis. We’re not going to solve them by shouting slogans past each other.
If Republicans do better than expected on November 2, there will be a lot of talk about voter anger and anxiety, Democratic misteps, the economy, the fiscal situation, health care reform, and so on and so forth. Some of this talk will be interesting and relevant
But any analysis of surprising Republican wins (if they happen) that doesn’t dwell at some length on this year’s massive deployment of “independent” money won’t be getting the story right.
A New York Timeseditorial yesterday nicely captured how two shadowy conservative groups suddenly painted a bullseye on sophomore Rep. Bruce Braley of Iowa:
Bruce Braley, a Democrat from northeastern Iowa, has been a popular two-term congressman and seemed likely to have an easy re-election until the huge cash mudslide of 2010. The Republican Party had largely left him alone, but then a secretive group called the American Future Fund began spending hundreds of thousands of dollars on distortion-heavy attack ads….The fund, based in Iowa, has spent at least $574,000 to run a series of anti-Braley ads. One that is particularly pernicious shows images of the ruined World Trade Center and then intones, “Incredibly, Bruce Braley supports building a mosque at ground zero.” Actually, Mr. Braley has never said that, stating only that the matter should be left to New Yorkers.
Another implies that Mr. Braley supports a middle-class tax increase because he voted to adjourn the House at a time when some Republicans had proposed cutting income taxes on everyone. In fact, Mr. Braley supports extending the Bush-era tax cuts for the middle class, while letting them expire for families making $250,000 or more to avoid adding $700 billion to the deficit.
Mr. Braley has also been the subject of $250,000 worth of attack ads by the U.S. Chamber of Commerce, which also has not disclosed its contributors.
The kind of money being tossed into this race by the American Future Fund and the Chamber is some serious jack for a place like northeastern Iowa. If Braley ultimately loses, you can attribute that to an incumbent’s complacency, or the Mood of the Midwest, or any number of other factors, but you can’t escape the reality that Braley would be coasting to re-election if two anonymous schmoes with big checkbooks hadn’t gotten up one fine morning and decided to take Braley out. They dialed up an upset in IA-1, and whether or not it happens on November 2, it’s sign of the new political world we must all get used to now that the U.S. Supreme Court has gone the extra mile in ensuring that unlimited use of anonymous corporate cash in campaigns is treated as thought it is central to the preservation of liberty. And that’s why in this supposed land of equality, some Americans, and even some political candidates, are more equal than others.
One hears a lot about the “enthusiasm gap” this election. But maybe the better term is “enthusiasm lack.” The vast majority of the American electorate is not at all jazzed up about their choices, and even if Republicans take back the House next Tuesday, it will hardly be because they inspired the American electorate. This is good news for Democrats in 2012, if they are smart enough to take advantage.
Consider the latest Associated Press-GfK Poll. With just a week until the election, one third of all likely voters say that they either haven’t yet made up their minds, or they are leaning in favor of one candidate but could still change their minds, though these undecideds are leaning slightly towards Republicans. This is hardly the sign of a passionate electorate.
Of course, midterm elections almost always have lower turnout than presidential elections anyway – typically about 40 percent of registered voters turnout in mid-term years, as opposed to 60 percent in presidential years. That missing 20 percent (or a third of those who vote in presidential elections) are often younger people and poorer people, but also those who tend to pay minimal attention to politics either because none of the candidates inspire them or they can’t see the difference.
Some quick back-of-the-envelope math: If 40 percent of the electorate winds up voting next week, but of that 40 percent only two-thirds feels strongly one way or another, we’re now down to roughly 27 percent of the electorate that has a strong feeling about the outcome. Since Republicans are doing better than Democrats among likely voters, let’s say that 15 percent of the electorate consists of Republican voters who currently feel strongly about how the election turns out. These are your hard-core, Tea Party-type Republicans who a Republican House majority would be representing.
Probably the only way this is a sustainable governing strategy is if the rest of the electorate remains so alienated and cynical that it continues to stay home while hard-core Republicans try to dismantle the idea of the modern state. Maybe this is the Republicans’ plan: make Washington so dysfunctional that nobody sees the point in voting anymore.
But here’s the more likely scenario: The presidential election of 2012 will bring out many of the voters who stayed home in 2010. Democrats will win back seats because turnout among registered Democrats and Democratic-leaning independent moderates will increase. (When Obama tells crowds ““If everybody who voted in 2008 shows up in 2010, we will win this election,” he is probably right.)
But in order for this to happen, Democrats have a challenge: they need to stay sane. They need to let the Republicans say and even try to do some of the ridiculous things that only 15 percent of the total electorate supports, all the while reinforcing how moderate and reasonable they are being, and not getting dragged into the gutter.
When the economy recovers (as it is already starting to), and the existential angst and fears of economic uncertainty dissipates, the Democrats (if they can refrain from counter-ranting and be the adults in the room) will come out looking much better, and will have a real mandate to proactively solve the major problems facing our country, like modernizing to meet the energy and infrastructure needs of the 21st century.
There will be, of course, many recriminations next Wednesday within the Democratic faithful that Obama didn’t do this, or didn’t do that. But the past is the past.
The hand that Democrats are being dealt is this: Republicans are likely to win the House on a platform that appeals to maybe 15 percent of the total electorate (though 30-40 percent of the active electorate). But as long as Democrats can be savvy, remaining moderate and letting hard-core Republicans fulminate hysterically as only they know how about absurdities like repealing the 17th Amendment, 2012 will be a very good year to be a Democrat.
Yesterday, former Bush speechwriter turned Washington Post columnist Michael Gerson picked on Obama for publicly complaining that fear gets in the way of rational thinking, and that the electorate isn’t thinking straight because people are scared.
Gerson accuses Obama of intellectual snobbery, of falling prey to pseudo-science (“Human beings under stress are not hard-wired for stupidity, which would be a distinct evolutionary disadvantage,” insists Gerson – more about that in a moment), and most of all, that Obama is not a very good politician because a good politician would connect with fear, rather than rationalize it away.
Of course, anyone who has read one of the many recent behavioral psychology books explaining why we humans do many stupid things not in our best interest would get what Obama is talking about. As Professor Obama correctly notes, when we get frightened, we tend to not be as good at stepping back and thinking things through rationally.
And this makes sense, from an evolutionary psychology perspective. There is no time for planning when you are being attacked by a predator. In moments of real emergency, one needs to act on instinct. Moreover, if you’re in a fight-or-flight moment, you need to focus all your energy on survival. No sense being rational about the future when the future might not even exist.
Though we are no longer on the predator-infested savannah, in modern society, we still experience extensive stress that produces much of the same fight-or-flight feeling, like, say, if we are worried about losing our jobs and providing for our families.
Moreover, human beings are also hard-wired for instant gratification because for most of our existence as a species and a proto-species, we never know if we were going to be alive tomorrow. We are also hard-wired to get mad and throw temper tantrums to demonstrate that we mean business when we don’t get what we want. That’s why it feels so good to act out and demand justice.
But a society of instant gratification and lashing out does not hold together well. Instead, much of the history of civilization can be seen as an attempt to find ways to sublimate our more destructive desires (those of the evolutionary old, reptilian brain) by using our ability to plan into the future (using our evolutionary new neocortex – the human brain) by enacting laws and teaching morality.
Obama, like many in the liberal tradition, believes in the collective ability of humans to reason and think past the immediate needs of what Freud called the id, and to achieve something bigger than our base desires.
But it’s a delicate balance. And Gerson is at least partially right: Obama hasn’t done as much to connect with the emotional concerns of everyday citizens (Clinton and Bush were much better at this)
Still, there’s also an important difference (that Gerson ignores) between honoring the fear and acting on the fear. Gerson writes: “There is fear out there in America – not because of the lizard brain but because of objective economic conditions.” His mistake is separating the two. Yes, economic distress makes people afraid. But the “lizard brain” is the part of the brain that amplifies this fear and leads people to lash out in ways and demand things that may feel good in the moment but defy long-run logic.
Fear and anxiety may be natural human conditions, and we have probably evolved to be quite prone to them (being happy and calm was presumably not a great strategy for avoiding predators and stockpiling food once upon a time).
But we can also overcome our fears. There is, in fact, a long tradition of mindfulness meditation that teaches inherently anxious humans to accept their emotions without acting out on them. Obama seems to be much more able to allow intellect to triumph over emotion than most, but perhaps too much so that he doesn’t understand intuitively how might have a hard time. Gerson seems to assume that fear is always valid and shouldn’t be overcome through the intellect. Somewhere in the middle is a successful approach to coping with our emotions and making productive, rational choices about our collective future.
It’s crazy, I know, but imagine that U.S. political leaders after the midterm election called a truce in the partisan tong wars to work out a compromise solution to the nation’s fiscal dilemmas. The result would probably look a lot like a new fiscal reform blueprint drawn up by two canny policy veterans, Bill Galston and Maya MacGuineas.
In The Future Is Now: A Balanced Plan to Stabilize Public Debt and Promote Economic Growth, Galston and MacGuineas map a radically centrist course to fiscal discipline that demands equal sacrifice from the left and the right, and that doesn’t impede economic recovery. Here’s hoping that President Obama’s deficit commission, which is groping for a politically feasible formula for fiscal restraint, will give this plan a close look.
Reducing America’s swollen deficits and debts is fast becoming an urgent national priority. Since President Obama took office, we’ve added three trillion dollars to the public debt, largely thanks to emergency spending to rescue the banking system and goose a faltering economy. But it’s the zooming growth of health care and retirement spending that really threatens to drown the federal government in debt. For decades, we’ve ignored warnings about the growing funding gaps in Medicare, Medicaid, and Social Security, but with the first wave of baby boomers now reaching retirement age, the future really is now.
We’ve dug ourselves more than a hole – it’s a canyon. So any talk now about balancing the federal budget is pure fantasy. The best we can hope for is to arrest the runaway growth of public debt and bring it back down to a sustainable level.
The administration’s forecasts show public debt, 40 percent of GDP two years ago, rising to more than 100 percent in 2012. The Galston-MacGuineas plan would bring that down to 60 percent of economic output by the end of this decade. It also would slash annual budget deficits from a projected five-to-six percent to around one percent, ensuring that our debts don’t grow faster than the economy.
Inevitably, the plan envisions a 50-50 split between spending reductions and tax hikes. It’s hard to image any other way forward considering liberal resistance to spending cuts, especially for the big entitlements that are driving our long-term debt problem, and the conservative allergy to tax increases of any kind. The hacking and lifting, however, would be phased in gradually to give the economy room to breathe and recover.
More specifically, the plan would:
Make sizeable cuts in defense spending, and impose a war surtax should our current conflicts extend beyond mid-decade.
Freeze discretionary spending for three years, such that increases in spending in one area would have to be made up by cuts elsewhere.
Modernize Social Security by indexing the retirement age to longevity, and trimming benefits for affluent retirees in the future. It would also raise the minimum benefit, strengthening the program’s anti-poverty effect, cut the payroll tax and add a new, mandatory savings account.
Supplement the cost-containment features of President Obama’s comprehensive health plan, by raising Medicare premiums, reducing subsidies and adding tort reform.
Prune tax expenditures (which cost more than one trillion dollars a year) by 10 percent and limit their future growth. The proceeds would go to lower tax rates and deficit reduction.
Enact a carbon tax, both to “buy down” the payroll tax and cut deficits.
Many of these proposals, of course, are deemed politically radioactive now, even if they are familiar fixtures on the wish lists of serious fiscal hawks. So why should we expect a package stuffed with political non-starters to advance?
Because the habit of evading even modestly tough choices has allowed the debt problem to reach such ginormous proportions that it can’t be solved in any other way, say Galston and MacGuineas. And if it isn’t solved, it will slow down U.S. economic growth, transfer our wealth to overseas creditors, and limit the federal budget’s fiscal capacity to respond to future emergencies.
The big question is: what impact will the midterm election have on the politics of fiscal evasion? Republicans say cutting taxes is the way to shrink government, but showed little stomach for cutting spending when they were in office. Result: huge public debts. Some Democrats believe deficits should be closed mostly by tax hikes, but aren’t really willing to propose them. Result: huge public debts.
As the Galston-MacGuineas plan shows, solving our fiscal problems doesn’t have to be a political zero sum game. The question is whether our political leaders can rediscover the lost arts of compromise and risk-sharing to advance vital national goals.