By JONATHAN CHAIT,
The New York Times, September 2, 2011
This has been the summer that liberal discontent with Obama has finally crystallized. The frustration has been simmering for a while — through centrist appointments, bank bailouts and the defeat of the public option, to name a few examples. But it has taken the debt-ceiling standoff and the threat of a double-dip recession to create a leftist critique of the president that stuck.
Obama’s image as a weakling and sellout on domestic issues now centers on his alleged resistance, from the very first days of his presidency, to do whatever was necessary to heal the economy. “The truly decisive move that broke the arc of history,” wrote the Emory professor Drew Westen in this newspaper, “was his handling of the stimulus.” Just as the conservative repudiation of George W. Bush boiled down to “he spent too much,” the liberal repudiation of Obama has settled on “he didn’t spend enough.”
There’s truth in that. President Obama underestimated the depth of the crisis in 2009 and left himself with bad options in the event the economy failed to recover as quickly as he hoped. And yet the wave of criticism from the left over the stimulus is fundamentally flawed: it ignores the real choices Obama faced (and the progressive decisions he made) and wishes away any constraints upon his power.
The most common hallmark of the left’s magical thinking is a failure to recognize that Congress is a separate, coequal branch of government consisting of members whose goals may differ from the president’s. Congressional Republicans pursued a strategy of denying Obama support for any major element of his agenda, on the correct assumption that this would make it less popular and help the party win the 2010 elections. Only for roughly four months during Obama’s term did Democrats have the 60 Senate votes they needed to overcome a filibuster. Moreover, Republican opposition has proved immune even to persistent and successful attempts by Obama to mobilize public opinion. Americans overwhelmingly favor deficit reduction that includes both spending and taxes and favor higher taxes on the rich in particular. Obama even made a series of crusading speeches on this theme. The result? Nada.
That kind of analysis, however, just feels wrong to liberals, who remember Bush steamrolling his agenda through Congress with no such complaints about obstructionism. Salon’s Glenn Greenwald recently invoked “the panoply of domestic legislation — including Bush tax cuts, No Child Left Behind and the Medicare Part D prescription drug entitlement — that Bush pushed through Congress in his first term.”
Yes, Bush passed his tax cuts — by using a method called reconciliation, which can avoid a filibuster but can be used only on budget issues. On No Child Left Behind and Medicare, he cut deals expanding government, which the right-wing equivalents of Greenwald denounced as a massive sellout. Bush did have one episode where he tried to force through a major domestic reform against a Senate filibuster: his crusade to privatize Social Security. Just as liberals urge Obama to do today, Bush barnstormed the country, pounding his message and pressuring Democrats, whom he cast as obstructionists. The result? Nada, beyond the collapse of Bush’s popularity.
Perhaps the oddest feature of the liberal indictment of Obama is its conclusion that Obama should have focused all his political capital on economic recovery. “He could likely have passed many small follow-up stimulative laws in 2009,” Jon Walker of the popular blog Firedoglake wrote last month. “Instead, he pivoted away from the economic crisis because he wrongly ignored those who warned the crisis was going to get worse.”
It’s worth recalling that several weeks before Obama proposed an $800 billion stimulus, House Democrats had floated a $500 billion stimulus. (Oddly, this never resulted in liberals portraying Nancy Pelosi as a congenitally timid right-wing enabler.) At the time, Obama’s $800 billion stimulus was seen by Congress, pundits and business leaders — that is to say, just about everybody who mattered — as mind-bogglingly large. News reports invariably described it as “huge,” “massive” or other terms suggesting it was unrealistically large, even kind of pornographic. The favored cliché used to describe the reaction in Congress was “sticker shock.”
Compounding the problem, Obama proposed his stimulus shortly after the Congressional Budget Office predicted deficits topping a trillion dollars. Even before Obama took office, and for months afterward, “everybody who mattered” insisted that the crisis required Obama to scale back the domestic initiatives he campaigned on, especially health care reform, but also cap-and-trade, financial regulation and so on. Colin Powell, a reliable barometer of elite opinion, warned in July of 2009: “I think one of the cautions that has to be given to the president — and I’ve talked to some of his people about this — is that you can’t have so many things on the table that you can’t absorb it all. And we can’t pay for it all.”
Rather than deploy every ounce of his leverage to force moderate Republicans, whose votes he needed, to swallow a larger stimulus than they wanted, Obama clearly husbanded some of his political capital. Why? Because in the position of choosing between the agenda he came into office hoping to enact and the short-term imperative of economic rescue, he picked the former. At the time, this was the course liberals wanted and centrists opposed.
On two subsequent occasions, Obama faced this same choice. Last December, he could have refused to extend any of the Bush tax cuts on income over $250,000. Republicans vowed to let all the tax cuts expire if he did so. If Obama let this happen, it would have almost fully solved the long-term deficit problem, while at the same time setting back the recovery by raising taxes on middle-class and low-income workers. Obama decided to make a deal, extending all the Bush tax cuts and also securing a progressive payroll tax cut and an extension of unemployment benefits, both forms of stimulus that Republicans would never have allowed without an extension of upper-bracket tax cuts in return.
There is a decent argument that the president should have refused this deal. But if you make that argument, you have to accept the likelihood that nearly a million fewer jobs would have been created and that we would have been at risk of a double-dip recession back then. Yet the liberal critics most exercised about Obama’s failure to secure more stimulus were, for the most part, enraged when he did exactly that. Take Robert Reich, the former secretary of labor under President Clinton. Last November, Reich pleaded for an extension of unemployment benefits, calling the plight of the jobless our “single newest and biggest social problem.” When Obama made his bargain, Reich called it “an abomination,” complaining that “the bits and pieces the president got in return” — including the unemployment benefits previously deemed vital — amounted to “peanuts.”
And then, this summer, Obama let the G.O.P. hold the debt-ceiling vote hostage to extract spending cuts. I think he should have called the Republicans’ bluff and let them accept the risk of a financial meltdown. But the reason Obama chose to cut a deal is that calling their bluff might have resulted in catastrophe. And Obama made a point of back-loading the G.O.P.’s budget cuts so as not to contract the economy. He may have chosen wrongly, but he chose exactly the priorities liberals now insist he ignored — favoring economic recovery over long-term goals.
Liberal critics of Obama, just like conservative critics of Republican presidents, generally want both maximal partisan conflict and maximal legislative achievement. In the real world, those two things are often at odds. Hence the allure of magical thinking.
Jonathan Chait is a senior editor for The New Republic.
