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Miles Mogulescu

Miles Mogulescu

Posted: August 13, 2010 03:45 PM

In the past few days, in response to Robert Gibbs' hostile comments about the "professional left," a number of commentators have focused on whether the "left" has given President Obama enough credit for his accomplishments or been too critical of his failings. But I don't want to focus on the left. The truth is that whatever role the "left," such as it is, may have played in helping Obama win the Democratic nomination and the presidency, since then the left -- professional, amateur, or otherwise -- has had virtually no impact on the policies and strategies of the Obama administration.

What I want to focus on, instead, is a group that has had a great deal on impact on the Obama administration's policies and strategies, namely Wall Street corporate "liberals." If President Obama and the Democratic Party are in trouble with many voters who cast their ballot for them in 2008, it is because of the influence of this group, not the "professional left."

As E.J. Dionne cautioned last January:

"If you held a contest to pick the worst thing a politician could be called at this moment, my nominee would be Wall Street Liberal...About the only more unpopular combination I can think of is high-cholesterol broccoli."

Or as I warned in these pages last December:

"As it increasingly appears that Obama is the President of Wall Street, and not the President of Main Street, he is losing not only the left but the center. It's a myth that the path to winning the popular center in American politics is moving to the corporate center. If the only political choice given to American voters is using their taxes to help big government subsidize wealthy corporations, or the Republican message of shrinking the size of government and cutting their taxes, many who voted for Obama will return to the fold of the seemingly brain-dead Republican Party. Obama will likely face an even more conservative Congress after the 2010 election and even, like Jimmy Carter, could end up as a one-term President."

Unfortunately, as Democrats passed a health reform bill filled with special interest deals with drug companies and for-profit hospitals, a financial reform bill that didn't cut Too Big To Fail Banks down to size, and failed to enact policies to stem the tide of long-term unemployment, the perception that Democrats buckle under to corporate big money interests over the interests of the middle class majority has begun to take root in many who voted for Obama. Republicans -- whose only policy prescription other than "No" is trickle down tax cuts for the wealthy -- only need to sit on the sidelines to reap the benefits.

"Liberalism" is usually used to describe a progressive movement of the less privileged in society -- working and middle class people, minorities, etc. -- to use the power of government to create greater social and economic equality, provide a social safety, and regulate the vagaries of the "free" market which otherwise leads to cycles of boom and bust and the increasing concentration of economic and political power in a handful of "to big to fail" corporations and their billionaire managers.

But beginning in the 1960's some commentators began to identify a different strain of liberalism which they termed "Corporate Liberalism." It was (and remains) an effort by the most powerful corporate and financial interests in America to use the power of the state to rationalize the corporate economic system for its own benefits. Since then, this brand of corporate liberalism has overwhelmed progressive liberalism to become the dominant strain in the Washington-based Democratic Party, including Bill and Hillary Clinton, Robert Rubin, Larry Summers, Tim Geithner, Rahm Emanuel, Max Baucus, Chris Dodd,most of the Congressional Democratic leadership, and it increasingly appears Barack Obama himself. These are the people who will be responsible if Democrats lose big in November

As David Brooks observed:

"Democrats learned never to go to war against the combined forces of corporate America. Today, whether it is on the stimulus, on health care, or any other issue, the Obama administration and the Congressional leadership go out of their way to court corporate interests, to win corporate support and to at least divide corporate opposition."

As it turns out, Corporate Liberalism, or Wall Street Liberalism, despite claims of pragmatism, leads to both bad policy and bad political strategy. As policy, the Democrats' health care bill fails to contain rising costs while forcing uninsured Americans to buy unaffordable policies from private insurers or be fined by the IRS. The financial reform bill does nothing to limit the size Too Big to Fail financial institutions which is likely to insure another round of bubbles, bursts, and bailouts. The stimulus package was too small, and too weighted to tax cuts, to make a sufficient impact on long-term unemployment. As political strategy, corporate liberalism makes it appear that Democrats favor powerful corporate interests over the middle class and disillusions voters.

If the only choice voters are offered is between corporate Democrats whom they perceive as using their taxes to subsidize corporations and banks, and not primarilly to benefit and strengthen the working and middle class, and right-wing Repubicans who promise to cut their taxes, many voters who supported Obama and the Democrats in 2008 will go back to the Republicans or stay home.

Despite this, most of the "professional left" whom Gibbs attacked, are likely to remain the Democrats' best foot soldiers come election time in the fall, loyally knocking on doors, making calls, and sending contributions. If, as now seems likely, Democrats face a big defeat in November, perhaps even losing their majority in the House or even the Senate, it won't be because of the "professional left." It will be because of voters' perceptions, largely correct, that Washington Democrats are dominated by Wall Street liberals.

As Kevin Baker wrote in Harpers Magazine at the beginning of Obama's presidency:

"Obama internalized what might be called Clinton's 'business liberalism' as an alternative to useless battles from another time...Clinton's business liberalism, however, is a chimera...a capitulation to powerful and selfish interest. ..a 'pragmatism that is not really pragmatism at all, just surrender to the usual corporate interests...

Franklin Roosevelt also took office imagining that he could bring all classes of Americans together in some big, mushy, cooperative scheme. Quickly disabused of this notion, he threw himself into the bumptious give-and-take of practical politics; lying, deceiving, manipulating, arraying one group after another on his side -- a transit encapsulated by how, at the end of his first term, his outraged opponents were calling him a 'traitor to his class' and he was gleefully inveighing against 'economic royalists' and announcing, 'They are unanimous in their hatred for me -- and I welcome their hatred.'

Obama should not deceive himself into thinking that such interest-group politics can be banished any more than can the cycles of Walls Street. It is not too late for him to change direction and seize the radical moment at hand. But for the moment... Barack Obama is moving prudently, carefully, reasonably toward disaster."


 
 
 
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07:38 PM on 08/18/2010
The real question is, how do progressives send a message to the Democratic Party that we will no longer tolerate said corporate liberals? Sitting here and complaining on HuffPost, but then ultimately holding our noses and voting for Wall Street friendly Democrats in November won't do the trick.

Progressives are like the wife who gets beaten by her husband over and over again and always says she'll leave the next time- but always stays and tells herself that things will magically get better. The only way to bring about any real commitment to a fair economy and the middle class is to ONLY support progressives like Dennis Kucinich, Bernie Sanders, Alan Grayson, and Russ Feingold. A vote for coporatist "liberals" is a vote for Wall Street.

We also need to get a real third party movement going that challenges the corporate prostitutes and neocon Dems from the Left by 2012. The time for complaining and wishful thinking is over- the time to put the fire to Obama and the corporate Dems' feet via political action is NOW.
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Sally Saffer
03:54 PM on 08/18/2010
Thank you for this excellent article, Miles. You have explained exactly why I have come to see myself as a "independent liberal." Your comments are accurate and helpful in understanding the shift in the polls away from President Obama -- against President Obama's policies.

I'm not certain he preceives himself in this way, which makes it all the harder for us to know whether his actions reflect what he chooses to do or whether he believes any changes he makes must be seen as "corporate left" to protect his efforts to shift the country.
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06:56 AM on 08/15/2010
Miles Mogulescu frames and clarifies an important distinction. While many people talk about corporitists of both parties, the concept of "Corporate Liberalism" gets at a deep issue dividing progressives. Mogulescu defines the term as "an effort by the most powerful corporate and financial interests in America to use the power of the state to rationalize the corporate economic system for its own benefits"and identifies its champions as the dominant strain in the Washington-based Democratic Party, including Bill and Hillary Clinton, Robert Rubin, Larry Summers, Tim Geithner, Rahm Emanuel, Max Baucus, Chris Dodd,most of the Congressional Democratic leadership."

The well staffed and rewarded corporate agenda quickly explains why we see Hillary Clinton

work relentlessly to make the Department of State an outpost of the Departments of Defense and Commerce,

strongly advocate for military escalation, war profiteering even with "humanitarian aid," and hugely expand mercenary contracts,

work to transform global food production into marketing for Monsanto,

subordinate human rights in China, Africa, Honduras, the Middle East to profiteering economic concerns.

We must hope and work to assure that President Obama recognizes the motives of too may around him, has the character, insight and will to balance and manage their influence, and will make course directions to serve the interests of average citizens, taxpayers, workers, stockholders, consumers ..... and voters.
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04:17 PM on 08/14/2010
This essay is simply outstanding. It really gets to the heart of my own disillusionment with Obama and his staff. We need a viable third party that has not been corrupted by Wall Street that is also not fond of tea.
01:17 PM on 08/14/2010
This is off the mark. The big problems are 1) the 16% effective unemployment rate coupled with the vulnerability of so many people who have lost the equity in their homes ; 2) a conservative propaganda machine that we have never before seen in our modern era in America. The economy makes people vulnerable. At a time when people want and need good, effective government, t

he ubiquitous bombastic Republican propaganda is a conscious strategy designed to make it appear that Obama and the Democrats can’t govern. There is no evidence that people are against government or would be against what Obama is doing if we had some bi-partisanship.

Just think of the terrible damage to our democracy that might be happening right now if McCain and Palin had won. Or what if Obama had conceded defeat in health care and was on the run and playing defense? Obama's accomplishments have been remarkable given the hand he was dealt, including the economic crisis, 2 wars, a divided and conservative Senate and so much else wrong in education, health, military, environmental and regulatory systems. Obama is showing the way to effective government despite the odds, even if it is not hard to find ways to criticize or to improve and build on it.

Let’s be clear: it's the relentless barrage of demagogic, racist, and nativist lies and rantings that are being mainstreamed by the Republican Party that is the danger we face, not Obama and liberal Democrats.
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Bing Just Bing
12:57 PM on 08/14/2010
Can someone name a "Wall Street liberal?" I don't find the term to believable.
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StJames
In absentia luci tenebrae vincunt
12:41 PM on 08/15/2010
They are social liberals....Think Jamie Dimon or Warren Buffet for example. They don't want the churches running the government any more than Progressives do...they ( the Wall St. Liberals) want to run it themselves. ;-)
05:27 PM on 08/20/2010
Lloyd Blankfein, Bernie Maddoff, Warren Buffet to name a few
12:16 PM on 08/14/2010
It is indeed tough to take on the Billionaires when many of them are housed in the Democratic Party.
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humanbeing-rick
Born in the USA 1947
12:11 PM on 08/14/2010
Wall Street corporate "liberals", or ""Corporate Liberalism", are the anti-thesis of what a true liberal represents. These are coined phrases by the social/media elite used to blur the boundaries and attempt to cause internal squabbling. A Wall Street corporate "liberals" are the most rabid of wolves in sheep clothing, unregulating our markets and infecting our government regulators with corruption, and then taking advantage of the situation and screwed the rest of America.
11:27 AM on 08/14/2010
I think this deserves repeating:

"If the only choice voters are offered is between corporate Democrats whom they perceive as using their taxes to subsidize corporations and banks, and not primarilly to benefit and strengthen the working and middle class, and right-wing Repubicans who promise to cut their taxes, many voters who supported Obama and the Democrats in 2008 will go back to the Republicans or stay home."

I think Americans are not as anti-tax as the Republicans want to believe, but I do think that most of us are against waste and fraud, and unfortunately that's how we see our tax dollars being spent. For every crazy Teabagger who thinks that any tax is some unconstitutional assault on their freedoms (while protesting in publicly-funded parks and guarded by taxpayer-paid police and driving on tax-supported public roads, and emailing over the largely taxpayer-owned Internet), there is a Democrat like me who supports the idea of using public money to pay for public projects IN THEORY, but believes that in practice most of the money goes to waste, fraud, and corruption.
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Soulsurfer
Solar Electrician,Longtime Surfin'Fool
12:36 PM on 08/14/2010
The mistake that most 'conservatives' make is to assume that government will always be bad. In a democracy, government will be bad if you don't participate in the process. It's hard, and it takes time and energy to inform yourself about your local issues, candidates and serving representatives. As a citizen you must stay vigilant, elect fair minded people and make sure there are consequences for bad behavior. Nepotism, cronyism, fraud, bribery, and theft all happen in the private business world too, but you don't hear people saying all businesses are bad. It's just easier to pull off in public office because no one is really paying attention, except the press (sometimes). Government can be a force for the good of the people, the people just need to get off their butts and participate. We really do get the government we deserve.
01:43 PM on 08/14/2010
You make excellent points about the need for vigilance.

I'm much more cynical, and see the corruption as systemic (it's not that government is necessarily bad, but I believe that the federal government, at least, is now pretty much incurably rotten).
11:20 AM on 08/14/2010
It's my understanding that what is called neo-liberalism is based on Adam Smith's "The Wealth of Nations" published in the 1700s where he expounded on his theories about the effect of unrestrained pursuit of self interests upon economics and the market. It was 'liberal' thinking at the time because governments imposed various fees and controls. There is a huge difference between social liberalism and market liberalism. The 20th century resurrgence is called Neo-Liberalism.
The 'professional left' are social liberals. Obama has been referred to as a Neo-Liberal because he supports the WTO and has embraced globalization and the trade agreements that have ruined our country. I haven't seen anyone on cable news TV criticize Obama's neo-liberal policies.
Some, but not many, groups have addressed what it means to be a member country of the WTO. No president or congress can reregulate banks or business because we have signed agreements promising not to. Obama isn't catering to Wall Street, he is working within the existing agreements, as is congress.
See publiccitizen.org for detailed explanations on how we are ruled by this organization that says we can't re-regulate banks and we can't break up to big to fail companies, etc.
This is why there are protests at the WTO, G8 and G20 meetings.
We need to educate ourselves and put candidates in office that reject the WTO and globalization.
BTW - it is the American working class in danger, not Obama.
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Bing Just Bing
12:54 PM on 08/14/2010
You did a much better job than the author of this particular post. Well done.
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StJames
In absentia luci tenebrae vincunt
12:46 PM on 08/15/2010
Fanned and Faved.

A wonderful explanation of just what is wrong with the present system of globalization. And, thanks for the link!
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den1953
The best politicians are for free!
11:14 AM on 08/14/2010
Drop the Liberal off the wall street tag and you have it, when you have the likes of Bernakie and Geithner and include Summers they aren't helping the White House's image, Goldman Sachs couldn't have a better bunch of lobbyists in Washington!
01:46 PM on 08/14/2010
Look at OrangeSalad's post above this one; the "liberal" tag doesn't mean what it means in American politics. Neo-liberals -- who are truly the ones in charge of Wall Street -- are basically the "captains of industry."

It's just an unfortunate coincidence of naming that "neo-liberal" sounds so much like "liberal." I consider myself a liberal, but I wouldn't touch a neo-liberal with someone ELSE'S ten foot pole.
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den1953
The best politicians are for free!
10:17 AM on 08/15/2010
Fanned and thanks but i believe labeling them neo liberals is a bit of a stretch these people were in there positions under the Bush Administration and hardly fit the liberal mold are far as i am concerned slightly right of neo liberal at best!
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Nosybear
Liar, damned liar and statistician
11:10 AM on 08/14/2010
It all goes back to the politician's skill set: Shaking down contributors and fooling voters. It's a lot easier to shake down a few politicians, in fact, there's a perverse incentive in our election funding system to do so. All you have to then do is to pass some piece of legislation favorable to the corporate donor, or vote yes reluctantly because the bill does "more good than harm" and you have another big donation lined up two years from now. And the Senate is more popular because it's easier to bribe fifty than three hundred and you only have to pay every six years.
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jmpurser
See My micro-bio
10:55 AM on 08/14/2010
Agreed and well said. Obama may be in the "center" of wall street but no where else. Even there I suspect he walks in the right lane.

Today we have one political party with two wings who argue over wedge issue trivia and work together on the main agenda of making rich people richer at all costs. And that's all we're going to have until we start supporting third parties.
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Bing Just Bing
12:58 PM on 08/14/2010
Well said? Perhaps parts were, but the main focus is on a mythical beast called a corporate liberal.
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HUFFPOST SUPER USER
David Durham
Just a guy who tries to stay informed and stand fo
10:16 AM on 08/14/2010
To those who say that Government is not the solution, it is the problem, take another look. You see, Government works. It works very well. It just depends on who it's working for. Corporate Democrats, along with Republicans, have been working for the wealthy and powerful. And boy, has Government ever worked for them! I think that Americans have not noticed this cozy relationship to any large degree because for many years an ability to run up debt has given many an illusion of financial security. Until the piper came round to collect his pay everything seemed fine. Well, now the piper's at the door knocking loudly. The illusions are starting to dissipate and the reality is lookin' pretty stark. Progressives now have the nerve to ask that Government start working for regular workin' folks. Naturally, this sort of boat rockin' upsets some powerful people and they have quite a machine in place to pump out well produced lies and propaganda to make people think that Government doesn't work. But they know that it does work and they're doing everything they can to keep it working. For them.
QuietLightTraveler
Scientist, Teacher, Naturalist, Photographer
09:48 AM on 08/14/2010
Well I'm definitely staying home. I'm not wasting my time to support this bunch of useless political trash. You reap what you soe, Obama.
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Bing Just Bing
01:00 PM on 08/14/2010
and by doing nothing you contribute to the problem you abhor. good work.