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Richard (RJ) Eskow

Richard (RJ) Eskow

Posted: November 3, 2010 04:48 PM

Last night's real winner wasn't a party or an ideology. The real winner was Wall Street. Once again the wealthy and powerful have applied the Shock Doctrine to US politics, using a financial crisis to increase their power. The Democratic Party tried to accommodate the Wall Street crowd for two years and failed. Now Democrats must decide whether to adopt a new, bold and coherent strategy, or keep listening to the same advice that got them here.

They may need to decide quickly. The party's usual suspects are already out in force, making excuses for themselves and peddling the same shopworn "centrist" wares. The president used the words "responsible," "responsibly," or "responsibility" thirteen times in today's press conference. It's admirable when someone takes responsibility for their actions. That's an act that will hopefully include taking stock of what went wrong and trying something different.

The Failure of Pseudo-Centrism

We're still suffering from the massive failure of a radical, free-market-run-wild ideology that devastated the economy. The public understood that, so they gave the Democrats an enormous mandate to change economic direction. Yet just twenty months later conservatives scored a huge triumph, leaving Democrats with a choice: Continue to blur the distinction between themselves and their opponents, or lay out a clear agenda for job creation and economic growth.

Of course, that's been the choice all along. But the president and many other senior Democrats chose to take the advice of the "centrist" experts within their party by adopting unpopular Republican positions and getting nothing in return. After last night's rout, what are these experts advising? You guessed it: more of the same so-called "Centrism." That's an odd word to use for policies that most Americans oppose, like cutting Social Security or allowing bankers to enrich themselves by endangering the economy, but theirs is an Alice-in-Wonderland world.

Real centrists would defend Social Security and do more to rein in Wall Street, since those positions are popular across the political spectrum. It's a good thing the president said today that he wants to spend more time with the American people. Bankers and the Deficit Commission aren't "centrists" where most Americans live.

If Democrats want to keep passing bills that include unpopular right-wing ideas, Republicans and their Wall Street patrons will be happy to let them do it and suffer the consequences. They've done it before, most notably when they let Dems take the fall for their unconditional bailout of the big banks. We saw the results yesterday. And yet, incredibly, the usual suspects are still pushing the same failed approach.

The Usual Suspects Respond

If the president wants new ideas, he won't get them from the ever-predictable Mark Penn. He's the mastermind who ended Hillary Clinton's nearly invincible run for the presidency with the same "centrist" pablum he peddled to Obama today. After noting correctly that "Republicans and the Tea Party won the turnout war" while Democrats' core constituencies of young voters and minorities stayed home, Penn nonetheless (and inevitably) concludes that the party must "move to the center." How will that increase turnout? Penn also says that "President Obama got out of step with the voters" -- apparently by enacting a few of the policies that voters elected him to carry out. The idea that Obama didn't enact enough of them never comes up -- but then, that wouldn't be very "centrist," would it?

Paul Begala's election response -- "A Centrist Democratic Agenda: More Jobs, Less Corruption" -- isn't as wrongheaded as Penn's, but it's convoluted and somewhat confusing. That's probably because Begala's Prime Directive, which seems to demand a "centrist" approach, conflicts with some vestigial common sense that he can't shake long enough to deliver the conventional wisdom.

Even as he advises moving to the "center," Begala correctly notes that the president's first responsibility is to create jobs. That's absolutely right: This election was about jobs, not ideology, and the Dems will continue to get hammered until people see some movement toward creating them. Begala's also right to suggest that Democrats stop using the word "stimulus" and keep repeating "jobs" instead.

Here's the real problem for Begala, and for all the other "centrists" who have rightly said that this election was about jobs and the economy: Doing more to create jobs and help the economy is a progressive agenda. It requires more government action (unless you believe in invisible tax fairies, which reputable economists do.) But moving to the "center" means embracing less government action.

Call it whatever you want. To win elections Democrats need to get the economy moving, and you can't do that in a "centrist" way. With Congress now able to block every sensible economic move, the Democrats must lay out a clear path toward more jobs. They should compromise when they must, of course, but this time they need to make it clear that they are compromising.

Making Excuses Instead of Making History

The centrists knew they'd have to defend themselves once the votes were counted. Maybe that's why political strategist Brendan Nyhan has been preemptively trying to stifle criticism with an approach that blends cogent arguments with a barrage of derision and dismissal. His "preview of post-election storytelling" even included a bingo card that mockingly laid out every possible explanation for the anticipated Democratic failure, including those of progressives like Robert Kuttner, in a way that makes all of them look equally absurd -- except Nyhan's, of course.

Unfortunately, Nyhan's explanation is just a slightly better-articulated version of the typical bag of excuses: A bad economy, the passage of time, and the fact that the party in power almost always loses a midterm election (more about that "almost" later). Nyhan even described President Obama as "a victim of circumstance." (This group of Democrats seem regrettably comfortable with the language of victimology and the use of the passive voice). (1)

The excuse makers also keep reminding us that the party in power always loses in midterm elections. That's using history to set the bar as low as possible. In this argument, history isn't just prologue: It's destiny, a fate as certain as Heaven or Hell in a Cotton Mather sermon. Two years ago we overthrew history's precedents when an African American named Barack Hussein Obama ran for president and won. According to the standards set by this excuse, he shouldn't even have bothered.

Crisis Management

There have been at least two major exceptions to this "midterm setback" rule. One was the congressional election of 1934, when Roosevelt's party gained seats in both the House and Senate halfway through his first term. (That was before he listened to the "centrists" who suggested he dial down on government activism, leading to an upturn in unemployment and a loss of seats in 1938.) The other was 2002, when the nation was still reeling from 9/11 and was preparing for wider war. That's different, say the centrists. We were in a crisis, and the nation rallied around its leadership. The only rational response to that argument is: Don't you think we're in a crisis now?

The Excuse Makers dismiss 2002 as an exception by insisting, as Nyhan and Jonathan Chait do, that economic forces inevitably determine the outcome of midterm elections. But a president with solid majorities in both houses should have been able to do more to change those economic forces, or at least lay out a clear agenda for changing them. They can't take that position, though, because it undermines their version of "centrism." So we're left once again with the Excuse Makers' two best friends: a victim mentality and the passive voice.

A Time to Choose

It was heartening to see the president stand up and take responsibility for last night's events, avoid any hint of victimology or passivity. The next step is to see the common thread that links Franklin Roosevelt's 1934 Democrats with George W. Bush's 2002 Republicans. Both parties were governing in a time of crisis, and both of them acted like it. Their leaders understood the power of the Shock Doctrine, whether or not they'd ever heard the term. In Bush's case, he used it cynically and destructively. But Roosevelt saw how important it was to act decisively, with a clearly articulated agenda and bold government action.

The president and his fellow Democrats have a choice. They can listen to the architects of yesterday's defeat by enacting policies on Social Security and Wall Street that most voters -- Democratic and Republican, liberal and conservative -- don't want. The usual suspects call that "centrism." (In an even more Orwellian phrasing, Nyhan even labels Markos Moulitsas' advocacy for widely popular policies "extremism.")

Or Democrats can learn from experience and choose a different approach. They can articulate a clear vision for the nation and its economy. A battle has been lost, but the war continues. Wall Street's shock doctrine tactics worked this time, but they've been defeated before and can be again. Let's hope the president continues to take responsibility in the best way possible: by learning from experience and then leading his party in a new and more effective direction.

____________________________________________

(1) Nyhan also offers a more interesting, more technical excuse: " ... demand for government tends to move in the opposite direction of the party in power -- increasing during the Eisenhower years, declining after the Great Society ..." Note the phrase "declining after the Great Society." That's a sleight of hand meant to distract the reader from an important fact: Demand for greater government did not decline during the Kennedy/Johnson years, until late in Johnson's presidency when his popularity plummeted because of the war and urban unrest. (The war in Vietnam was Johnson's most "centrist" policy, while other "centrists" blocked him from sending more aid to the inner cities.)

Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America's Future. This post was produced as part of the Curbing Wall Street project and the Strengthen Social Security campaign. Richard also blogs at A Night Light.

He can be reached at "rjeskow@ourfuture.org."

Website: Eskow and Associates

 

Follow Richard (RJ) Eskow on Twitter: www.twitter.com/rjeskow

Last night's real winner wasn't a party or an ideology. The real winner was Wall Street. Once again the wealthy and powerful have applied the Shock Doctrine to US politics, using a financial crisis ...
Last night's real winner wasn't a party or an ideology. The real winner was Wall Street. Once again the wealthy and powerful have applied the Shock Doctrine to US politics, using a financial crisis ...
 
 
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HUFFPOST PUNDIT
jmpurser
See My micro-bio
02:50 PM on 11/04/2010
Eskow, would you quit pretending that Obama has a "choice" to make? Or that the Democrats merely "accommodated wall street" for the last two years?

Voting for the Democrats is just like voting for the Republicans only one or two years slower.

If you LIKE selling the nation to the rich and their corporations at bargain basement prices then stick with the two parties. If you're ready for a change start looking for a third party.
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Estreet1964
Gimmie the beat boys and free my soul....
01:29 PM on 11/04/2010
Those were all nice suggestions for things Obama and the Democrats could do to resist the centrists and pave the way for a progressive approach to governing that will increase job growth and bring back the economy but I'm not going to hold my breath waiting for them to catch a clue.

The first thing they will when they get back is stand passively by and let all the Bush tax cuts continue.
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HUFFPOST SUPER USER
DanBeach
non-profiteer
01:27 PM on 11/04/2010
NO COMPROMISE...Working People or Wallstreet ...it is that simple
01:12 PM on 11/04/2010
The White House’s Director of Management and Budget, Peter Orszag, in the NYT November 3 2010 tells us: “There are four ways to contain health care costs: by reducing payments to providers and suppliers; by rationing services; by having consumers pay a greater share; and by giving providers incentives to be more efficient.”

This is a flat out lie.

A savings of 15% or more can be achieved through a government-administered plan like Medicare - for everyone. (And by the way, a CBS/New York Times poll June 2009 showed that 72% of Americans favored this approach.)

The quickest and easiest and sane way to save is move to a single payer system. Advocates for such a system were blocked from speaking by Senator Max Baucus last year; but the facts are the facts.

When the President of the United States allows his White House Director of Management and Budget lies about such a fundamental reality, it reflects very poorly on the President and his leadership.

President Obama does not need people working for him who lie to the American people. Whether it’s “Heck of a Job Timmy” or Orszag, people are tired of being lied to.

If President Obama does not have the courage to stop his own staff from lying to the American people, he is no leader.
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parlimentMike
Terrorists keep you in fear
03:56 PM on 11/04/2010
The BS both sides (the corporate Republicans and corporate Democrats) shovel around Health Care Payments systems is surreal. Medicare works better and costs less. It has the further benefit of making it easier for businesses to employ another American worker instead of an offshore one who come without healthcare overhead. And it would save the non-productive effort to decide which bills need to be paid by someone else, and the costs to providers that payment delays cause.
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HUFFPOST SUPER USER
rory talbot
Former Dem but they r now wing of Corp. party
11:27 AM on 11/04/2010
You are wrong! Obama needs to continue to heed Geithner/Summers/Bernake's advice to have a big ear for Wall Street and a tin ear for Main Street. That strategy worked so well these last two years. Just kidding.

Sad as this may sound, I would bet my life that Obama learned no lessons over the "shellacking." And I will bet you that rather than enact bold populist measures, he'll move more cautiously, more timidly, and more to the Right.
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Onyx50
Facts Do Matter.
01:15 PM on 11/04/2010
I understand your cynicism, but let's not jump to conclusions so soon. The one thing that is not up for debate is the intelligence of the President. One of the negatives the Primaries did bring out was that he was "green" to the ways of politics in Washington. Now with a healthy dose of reality of how things really work in Washington and with a republican house, I believe we will see a diferrent approach.
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parlimentMike
Terrorists keep you in fear
04:02 PM on 11/04/2010
If we don't see a different approach, then will it be a failure of intelligence, or proof of corruption?
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mrclark
I search for the America I believed in as a boy.
09:51 AM on 11/04/2010
Excellent article, it states the choices facing Obama. Richard Eskrow is an excellent writer and is one of my favorites at Huffington Post. Obama needs to look in the mirror because setting on the fence will doom him to mediocrity. I voted for Obama because in his campaign I thought he channeled a lot of my favorite President who was Franklin Delano Roosevelt. Today, I don't see a lot of similarities but at least when troubled I can still read FDR's words which give me the hope of a better America when he says "The only limit to our realization of tomorrow will be our doubts about reality." Hope you see springs eternal and in it resides the saving grace of mankind.
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MadAs
Tuned-in science editor
10:54 AM on 11/04/2010
No I think Roosevelt should have taken Barack's lead in WWII, as I explained a bit below in 12:20 AM comment.
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HUFFPOST COMMUNITY MODERATOR
Sock De Jour
Democracy is an illusion
12:07 PM on 11/04/2010
I think he's channeling Neville Chamberlain, unfortunately. Trying to compromise with a party (Republicans) that can't benefit themselves by co-operating is just a way to disguise your own corporate bent.
08:59 AM on 11/04/2010
Yes, Obama is really listening to wall street - that's why he is printing another $600,000,000,000.00 for them and all this does is hurt us poor. What a joke - get real please.
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MadAs
Tuned-in science editor
10:47 AM on 11/04/2010
Wouldn't be so sure about that.

First the Fed is not Obama, it's not even government. Second, it is being done as a rather desperate attempt to get the economic heartbeat going again -- that is, the Fed recognizes the heart attack is ongoing and that Congress is not going to do a damn thing about it.

Consequently, the Fed is really trying an untested procedure in the hope that it will work. So if you want to "get real" there, rchham, get "real" mad at your congressfolk, not Obama (but then I suspect you would just prefer to be mad at Obama for, uhhh...oh you'll come up with something I'm sure).
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HUFFPOST SUPER USER
Di Knox
04:49 PM on 11/04/2010
I'm sorry but this next round of QE2 (Quantitative Easing) is just another back door handout to any bank worth 1 billion or more.

Banks and corporations have record amounts of capital on their books-waiting to be deployed. How does this 600 billion do anything for mainstreet.

And if Obama would have taken a bold approach to the economy when he still had political capital the FED wouldnt need such desperate measures....oh well.
martman1
retired business owner
08:31 AM on 11/04/2010
He needs to get a new economic team. (His latest appointment seems promising)

His current team seems to buy into two faulty economic theories; 1) trickle down economics (supply-side theory) and 2) the theory of comparative advantage in trade.

These ideas have lead to the wealth and income being sucked out of the middle class. That is, what was to trickle down, didn't and we lost our manufacturing base.
07:08 AM on 11/04/2010
This article pretty much nails it. Now, let's see if Obama and the Dims are capable of learning from their mistakes, and can swallow their pride long enough to partake of good advice. I'm not holding my breath though, and still think Progressives should just start a party of our own. This has gotten worse than absurd. If we're going to endure the persecution of the Democratic leadership and many of it's members, we should withdraw support entirely, except in instances where our goals ACTUALLY coincide. And judging by the events of recent years, I'm thinking that those instances will indeed be few and far between.
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02:54 AM on 11/04/2010
President Obama got out of step with the voters" -- apparently by enacting a few of the policies that voters elected him to carry out. The idea that Obama didn't enact enough of them never comes up."

Not enough of them......And isn't that strange?

I've brought that up here many times. And always had the faithful jump me for it. There's always an excuse. Party of No. Only been in power a year, 14 months 20 months. And my personal fave--He's just the president, he's not a king or a dictator.

Obama lost us this election. He lost it by not DOING the right things at the right time. His centrist told him to take care of Wall Street, and he did.

And what about jobs?

Someone told me that the stimulus was really a jobs bill. If it was, it never was sold to us on that basis, and the 9.6% unemployment we still have says it didn't work, and as the money finishes cycling through the system, what little effect it had will taper off to nothing. So, No it wasn't a jobs bill.

But a Real Jobs Bill is exactly the 'enough' that we--working class, jobless, foreclosed on middle America, Really needed. But it's funny how his centrist walked all around getting us the help we need while unloading truck loads of our money on wall street.
03:24 AM on 11/04/2010
9.6% unemployment is a turnaround from what it was when he took office and definitely from where it would be had he not been elected. His admin has created more jobs in 22 months than Bush's did in 8 years. Also enacted the largest middle class tax break in history.
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HUFFPOST COMMUNITY MODERATOR
Sock De Jour
Democracy is an illusion
09:36 AM on 11/04/2010
No, you've got your figures wrong. We didn't have 9.65% unemployment when he took office,
http://www.data360.org/dsg.aspx?Data_Set_Group_Id=248
and the jobs they say that were created, weren't created, they were supposedly "saved" with the stimulus. These were mostly government jobs... Teachers, firefighters, police etc. Not exactly a way to stimulate the economy, when we already know that most new jobs are created by small business.

The fact is, neither party have any ideas for creating a new economy, and that's what we need because the manufacturing sector has been destroyed through job exportation, and now the service industry is vanishing because of the same problem. We have an economy that's based on what? Consuming? Consumption and debt are part of the problem, and why the economy came to a standstill when the financial crisis took hold, because the debt/consumption model wasn't able to sustain itself.
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mannapat
Truthiness shines a light.
02:50 AM on 11/04/2010
Note to Rahm: Well, now you have an answer to your question, "Where're they gonna' go?", referring to Obama's base when we were continually ignored, and even insulted. They didn't go anywhere. Had the war ended, we would have been there. Had a very sensible Public Option been included in health reform, we would have been there. If bank gambling had been prevented, we would have been there. And on all 3 of these questions, so would the independents, and MANY moderate Republicans! For the future, if this Administration caves on the taxes for the rich and allows the additional $700 billion increase in the national debt, what do you think will happen? (I mean besides Obama having to take the rap for the huge increase in the debt in the history books forever.)

I'm sorry that the Dems lost so many people, but I'm not surprised. Many of them will not be missed. Why should Democrats go out and vote for the DINOs who angered and disappointed them so many times? And I guess the DINOs found out that Republicans won't vote for them, either. So sad.
01:41 AM on 11/04/2010
I co-sign this article. One of the more sensible analysis that I've seen in a long time. Obama forgot his base and they let him know it. Obama would not have been elected without the left. But he was too busy trying to appease the die hard Teapublicans and the wishy washy independents. Well, what about the progressive agenda? I hope the next 2 years is your bold and black side Obama. I'm tired of the straight lace polished side. This is not Harvard, we are in the streets Obama, it's a jungle out here so you better put on your survival gear and let's go!
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02:12 AM on 11/04/2010
Seconded, fanned and faved.
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HUFFPOST SUPER USER
Liz Patrick
04:04 AM on 11/04/2010
His black side??? What pray tell is that supposed to mean?
05:39 AM on 11/04/2010
This is America. We've all got one. I'm not an Obama apologist. I think that he lied to the American people, but I find it interesting that the racism of the opposition has not been a part of the public punditry's analysis. I heard Rush Limbaugh say on the local broadcast, "we want people in the White House who look like us." There is much talk about why people would vote against their self interest. I think that narrow-minded, ignorant prejudice defined the self-interest of many who supported the well-funded, anti-progressive campaign of the Corporations.
10:47 AM on 11/04/2010
code words. if you don't know, i can't help you.
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MadAs
Tuned-in science editor
12:20 AM on 11/04/2010
When the bombs hit Pearl Harbor, what Roosevelt should have done that would have totally avoided WWII was to have simply said, "You know what Japanese and Germans and Italians, "Let's all get together and see if we can't work out our differences and work together."

Okay, I'm exaggerating but I hope makes the point.
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HUFFPOST SUPER USER
Robert Cantor
I am a human being descended from a small group of
07:17 AM on 11/04/2010
fair point
12:16 AM on 11/04/2010
Lets shut down all imports and exports coming into America for 1 year.... and lets print all the money we want in order to reset our own internal economy... once everything has reset.. then we can open our gates in a new financial position to our export economy...... ever country needs to do this unless it is a super poor country that can not survive with outside help...
we must seperate and look at our economy as internal & external. and what need is to fix the internal and our external will fall in line...
HUFFPOST SUPER USER
dennidus1680
07:22 AM on 11/04/2010
That would work great in the long run, since we off shored our manufacturing and this would bring it back, but in the short run it would be very painful.
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Democrat in the South
Empathy, the most important word
12:06 AM on 11/04/2010
Brilliant and spot on!!!!!!
12:32 AM on 11/04/2010
Bravo Richard.... President Obama needs to hit a home run on all the liberal agenda and real soon, Keep the tpers and gofers really busy. Great insight!!!!
01:43 AM on 11/04/2010
i agree. The opponent have warned him so many times about how they feel about him. And he let them roll him over each time. I'm sick of it. It's a war out her and he better fight the next 2 years.