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Robert Kuttner

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Future Imperfect

Posted: 09/11/11 09:53 PM ET

Looking forward, what is the best and worst that we can expect in politics and economics?

Suppose President Obama's jobs speech of last Thursday marks a turning point. He gets energized by being a little more partisan. He finds that putting Republicans on the defensive is good politics. His poll numbers improve. He wins some of his proposed jobs bill, and fights hard for the rest of it.

As unemployment remains persistently high going into an election year, he offers even stronger medicine. His base gets energized.

(Stay with me here, I know this is a bit wishful -- it's an exercise, a thought experiment, not a prediction -- but the alternative is to just slit our wrists.)

As the election draws closer, voters take a closer look at what Republicans are actually offering and it isn't very appetizing. Rick Perry, the likely GOP nominee, who has never faced tough media scrutiny, doesn't wear well. He has trouble dancing away from the truly nutty stuff he has embraced in the recent past.

So Obama is re-elected in 2012. Skeptical voters in the battleground states of Ohio, Pennsylvania, Michigan, Wisconsin are not thrilled with the recession and the Democrats, but even less happy with Republican governors and austerity.

Even better, a resurgent Obama has coattails. The House flips back to narrowly Democratic. Keeping Democratic control of the Senate will be tougher, with 23 Democratic seats and just 10 Republican ones up in 2012. Democrats will have to take every winnable race, but let's say they do, and the Senate stays barely Democratic.

What then?

The economy is still mired in stagnation, and it's a long slog. The deflationary forces preventing a recovery will still be there: depressed wages and purchasing power; lost household wealth; a traumatized small business sector; banks that would rather use cheap money to trade than to lend; too little job-creation.

There is no easy fix other than massive government spending, radical reform of the banking system, and drastic restructuring of the mortgage mess. Budget austerity of the sort embraced by Team Obama in the debt-ceiling deal will only add to the economic downdraft.

Though it will be an uphill battle for Obama to win re-election, much less to take a Democratic Congress with him, it is actually easier to imagine Democrats pulling out an electoral win in 2012 than it is to envision them embracing the far bolder medicine that the economy needs. And, even under the best of circumstances, there will still be Republican use of the filibuster.

Obama would have to win back broad popularity, use the presidency to explain just what it will take to restore prosperity, trade austerity for New Deal II, and then use his political capital to force Republicans to take vote after vote against economic recovery -- or stop blocking his program. I would not bet the farm on any of this happening.

So, barring a miracle, even if Obama is re-elected, the likelihood is for a generation of depressed economic potential, sour politics, and more voter disillusion with government. At worst, Obama could be the Democratic Herbert Hoover for not just one term but two.

Okay then, suppose Obama loses. If the Republicans win, President Rick Perry will almost certainly take a Republican House and Senate with him.

We can imagine intensified assaults on Social Security and Medicare, more moves to turn America into a theocracy, and the courts will be lost for a generation. More deregulation and privatization, too.

However -- nothing the Republicans say or do will improve the economy for regular people. An austerity program, even tempered by tax cuts, will only worsen the stagnation. More Americans will be reliant on a safety net the Republicans are shredding.

So, going into 2016, the Republicans will own an economy in protracted depression. And as opposition party, progressive Democrats will be full-throated, no longer in the awkward position of being upstaged by their centrist president.

Assuming the Republicans don't find a way to cancel the 2016 election, a Democrat would have a good shot at winning. And a progressive Democrat (if one can be found) would have a good chance at being nominated.

Let me be clear here. I am not saying that we'd be better off if Obama lost in 2012. The risks of that course are simply too great. In the 1930s, German leftists adopted the slogan, "After Hitler, Us." It didn't work out so well.

No, I'd rather see Obama win, but win as a progressive -- because he will certainly not win as a centrist promoting more belt-tightening, much less as an appeaser letting Republicans roll over him.

There is a real risk, however, that the presidency in the years after 2012 will be a poisoned chalice. The economy is going to be depressed for a while. The party that owns the economy for the next four years is unlikely to be re-elected in 2016, unless that party governs with a far bolder and more progressive strategy than anything either party is currently offering.

Come to think of it, that describes the 2012 election as well.

Robert Kuttner is co-editor of The American Prospect and a senior fellow at Demos. His latest book is A Presidency in Peril.

 
 
 
 
 
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09:27 PM on 09/14/2011
Aloha Mr. Kuttner. Even though it is a lifetime (in internet terms) since you posted this essay, i must respond.

In your description of a possible Democratic presidency and majorities in the House and Senate in 2012 you quickly move past the continued ruthless and relentless use by the Republicans of the filibuster in the Senate.

There can be no real progressive, let alone mainstream Democratic solutions to any of our nation's problems while a de facto super-majority is needed to pass any bills in the Senate.

Changing the Senate rules is an issue Democrats of all stripes, as well as Independents and even Republicans who care about the constitution can all get behind.

We've seen the havoc and destruction 8 years of Republican rule under Bush has wreaked. We've seen the gridlock and obstructionism of the current congressional Republicans, with no regard for the suffering of the poor and ever-shrinking middle class. And we've seen in WI, FL, OH, MI and elsewhere the disastrous policies under Republican governors regarding voter ID's, women's healthcare, financial marshal law, drug-testing, the pushback against collective bargaining and on and on.

We can no longer afford the niceties of the Democratic "big house" debates.

Beyond re-electing President Obama and Democratic majorities in the House and Senate, we MUST pressure the Senate to change its rules. That is the fulcrum on which the future of our democracy rests. It's not sexy, it's not catchy, but i believe it to be true.
09:20 AM on 09/13/2011
Well I do think it would be better if a Republican did win in 2012. Let the right wing voters see how the policies they espouse, and the RW talk radio/Fox agenda will affect them. The Republicans with their no regulations, anything to help the rich, no health care proposal, no public option, cutting Social Security/Medicare etc. etc. will not be good for the average voter in this country. Until some voters come to their senses, little will change in this country. Bush entered the WH with a surplus and doubled the national debt during his tenure, with the economy on the verge of collapse at the end. But the RW talk radio/Fox listeners were not paying attention then, now they are more intuned although still being misled. If Obama is reelected, the no holds barred, divide and conquer strategy will continue in this country, led by RW media.
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JudgeMoonbox
08:49 PM on 09/13/2011
"Well I do think it would be better if a Republican did win in 2012. Let the right wing voters see how the policies they espouse, and the RW talk radio/Fox agenda will affect them."

It took 8 years for them to see that Bush wasn't what they thought he was, and they've shown no sign that they've learned their lesson.
06:30 AM on 09/13/2011
Mr. Kuttner, thank you for another insightful essay. I always look forward to your contributions. You have given me much to ponder, as usual. I agree with your prognosis of the likely outcomes of 2012: a "centrist" (read "capitulationist") Democratic regime would be a terrible burden for working Americans, and a Republican sweep would exponentially worse. I share your fear that the dangers of a Republican victory are too great. Yet for the first time in my entire lifespan as an eligible voter, I am inclined to sit this election out, or vote Green (I never voted for Nader because I didn't want to "throw away my vote" in our winner-take-all electoral system). But the Obama bait-and-switch--vote for a transformational progressive, get a moderate Republican--has changed my mind. Obama and most Democrats have made it abundantly clear that they take the progressive vote completely for granted, as if they were thinking: "What are you chumps going to do, vote for a Republican? Yeah, right." I am inclined to think that it is time to teach them a lesson, although the thought of the consequences turns my stomach.
06:03 AM on 09/13/2011
New Deal I was an abject failure.

It had to be bailed out by drafting 18 million workers out of the labor force, wage/price controls etc

Why would we want to try New Deal II?
11:45 PM on 09/12/2011
The problem with obama isn't that he "can't emote" or that he "caves in too early." The problem is that more americans agree with the republicans than with him.
06:40 AM on 09/13/2011
This is an important point. Of course, polls fluctuate depending on how you phrase questions, and George Lakoff and Drew Westin both claim that you can get decisive progressive majorities on many issues if you frame the debate correctly, and they've researched this issue exhaustively. But I tend to think you are right in a sense: America has a mean streak that is easily exploited. The Republcan's disgusting "Southern Strategy," from Nixon to Attwater to the birthers, wouldn't have worked in a better country. The myth of "welfare queens" wouldn't have played in a public that is more reality based. Harsh, but true. The question is, what do we do now? I watched many family members go Republican in the early 70s, influenced more by race-bating than they would have cared to admit. But not all of them are completely heartless. If progressives continue to press, some of them will listen.
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LONDON3
Music keeps me sane in a crazed society :-)
07:41 AM on 09/13/2011
Agreed, its funny how most think the world will turn on a dime if they vote in a Republican such as a Perry or Romney......Newsflash: It definitely is not the solution to all the issues we face!

If we can't face them together then we fall apart.....The DIVIDED States of America !!!
The WORLD is watching too
pup sydney
needs of regular folks, Italy; cancer;
10:05 PM on 09/12/2011
I do like twhen one like kuttner talks hypothetically but this is not helpful today.
Isn't ti amazing that a commentator - a good one like Kuttners- does not even consider how conventional and sclerotic it is to think in partisan terms when the country is in the shi#$%^&er?
Iceland and Belgium :please check their government situation: they essentially got rid of "politicians" in this crisis and they are much better off for it: we should do the same or at least mr kuttner please embrace the idea of kicking the 2 parties that manufactured this crisis out and replace them with a national assembly -type third party. If not now when?
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svejkist
08:19 PM on 09/12/2011
I am surprised Mr. Kuttner thinks a Republican President and Congress would pursue austerity. What evidence is there of that? Austerity is just a talking point for badgering Democrats.
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JudgeMoonbox
09:01 PM on 09/12/2011
"I am surprised Mr. Kuttner thinks a Republican President and Congress would pursue austerity. What evidence is there of that?"

Here's your evidence:

1) The Tea Party demands austerity that would be comparable to a city government declaring that because a drought makes them aks homeowners to cut their water consumption by 20%, the Fire Department will fihgt 20% fewer fires.

2) The Republicans in Congress have shown that they are, if not in agreement with Rush Limbaugh and Grover Norquist, too afraid of them to put the country's best interest first.

Don't you feel like smacking your forehead and saying "Duh!" right now?
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svejkist
07:59 PM on 09/14/2011
Not at all. There is a big difference between what the Republican Party does when they control the White House and what they tell the yahoos that vote for them. What you describe is not evidence of what their actual policies would be. A better indicator would be how they have acted every time the controlled the White House since 1968. They aren't as dumb as they sound. It will be GWB all over again.
06:50 AM on 09/13/2011
The Republicans might indeed continue to run huge deficits (the better to insist on "starving the beast" when the Dems come back to power), but the beneficiaries of that spending will shift in important ways. You are right, they won't dramatically slash spending. But they will change the beneficiaries in drastic ways if they can. They will privatize roads (like toll roads?), Medicare, Medicaid, Social Security, the Post Office, schools, and even more defense and 'homeland security' services. Much more of taxpayer's money will thus be siphoned off as corporate profits. In this context, they may cut spending slightly, in order to claim fiscal responsibility. They will deliver huge benefits to their fat cat corporate contributors. Normal Americans will suffer a degredation of services. Corporate profits (for corporations that get a piece of the gov't outsourcing pie) will jump. But the economy will suffer, as the increased tolls for these privatized services drain resources without adding value or increasing productivity.
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svejkist
08:02 PM on 09/14/2011
Absolutely. I agree that they will do as many of those many destructive things as they can. I just think Kuttner is being naive is he thinks they believe their own fiscal rhetoric. It isn't like him either.

However, those are mostly long term problems. They will spend enough to stem the demand crisis. They know they have to do that. It will be 1983-84 all over again.
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kemstone
Just another opinionated nobody.
07:21 PM on 09/12/2011
Are there really only these two miserable options? How about considering a progressive primary challenger to Obama in your thought experiment?
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bc161
11:58 PM on 09/12/2011
I wish we could but historically it will give the GOP better odds on taking the election.
02:10 PM on 09/13/2011
Thank you. There are lots of different things we could do. It's time to get creative and move beyond the two miserable options.
JVene
Software Engineer, Parent, Cook & Musician
06:40 PM on 09/12/2011
History shows we respond to catastrophe. We don't respond well to warnings, not as a nation, or predictions, or reason. We forget the past, and so we repeat it.

So, unless we think everyone's all grown up finally, let's get on with repeating it.

I'll wait it out, suffering through a four year republican cycle, so that it gets to a point that schools are closed, healthcare requires a full year's salary, bread is $5 a loaf (for the cheap stuff), banks have failed, soup lines are long and misery is everywhere.

At that point, maybe, just maybe, we'll realize we've done the wrong things and start thinking about what we're doing.

Like - free trade. It's great if you're USING it. Trust me, I know! Start making furniture, or design a line of clothing (if you have startup funds), make your own job and employ 1,000 Chinese - it's what all the wealthy are doing.

Just don't tell everyone. The other Americans without work won't appreciate it quite so much, but really...really, it works!

One has to get over the fact that this new enterprise is based on a communist labor force, but that's just business. I can make 50 cents a shirt off a $5 retail price, doing nothing but artwork on a computer, some basic business accounting and some promotional stuff. At 50,000 shirts a week, I can live.

It's not healthy for America, but its the republican formula.
11:48 PM on 09/12/2011
Who signed NAFTA into law again?
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bc161
12:00 AM on 09/13/2011
I'm with you and usually think I could weather a 4 year of REAL GOP leadership but the specter of 30s Germany is a legitimate worry.
06:05 PM on 09/12/2011
To quote Lenin: The worse - the better.

In other words, may be it would be better to elect a Republican President in 2012 (the economy surely will get worse). A Republican House & Senate would be even better. Then in 2016 people will elect a Democratic one (hopefully a good one this time) for two terms (hopefully). . This means a loss of four years.
If on the other hand Obama gets re-elected for a second term, people will surely vote for a Republican president in 2016, which is a loss of eight to twelve years until a Democratic President may be elected and is able to address the economy issues.

I am seriously considering voting Republican next year.
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libforsanity
07:13 PM on 09/12/2011
What's scary about this statement, is that I see the logic in it. Gah! We are in Trouble.
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kemstone
Just another opinionated nobody.
07:24 PM on 09/12/2011
For your own sake, don't do it. Americans are stupid enough to elect a Republican next year without your help. You might as well just sit it out and keep your hands clean.
05:54 PM on 09/12/2011
It's nice to daydream about a potential win, or the delayed-gratification of a likely slam-dunk win and potential social-progressive inroads.
But one thing (ok, two things) I would caution: every election cycle will be a difficult premise for Democrats, even when they are the logical AND the emotionally sensible choice. No matter if it seems likely, or a slam-dunk, it will be an uphill challenge because of the full-throated Republican media machine drowning out working-class concerns with accusations of socialism, un-Americanism, pseudo-controversies (Acorn, Shirley Sherrod, Ground Zero mosques) and culture wars. The fact that Republicans haven't had to pay for two years of blatant obstructionism and know-nothingness is clear evidence of it.

The more worrisome concern is that under a President Perry and his austerity measures, we will likely fall into full-scale depression, unemployment will escalate, Healthcare reform will be aborted, and on top of it all they will try to revoke Social Security and Medicare (with Medicaid first on the list), God knows what will happen to the dollar, and in the midst of economic despair, I could see that in the hands of Fox News propaganda and asleep-at-the-wheel CNN and corporate-network-news, we could easily be led into another fraudulent war - or worse.
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Russell Allison
Mostly sunny
07:49 PM on 09/12/2011
War Between the States part 2.
08:00 PM on 09/12/2011
Potentially.
A people in despair can do dreadful things, looking for people to blame - I could see AM Talk Radio personalities suggesting to their listeners that neighboring Liberals are dangerous - and maybe they shouldn't be considered 'real' Americans.
I could see Fox News hosts telling their viewers that Mexicans should be feared, and that retribution for some invented atrocity was only appropriate.
I could see the cowering Democrats approving enhanced-interrogation techniques for political scapegoats.
In short, I could see democracy failing.
11:51 PM on 09/12/2011
Wow.

The republicans have 1 cable station that not even everybody gets, fox news and a radio station.

The democrats have abc, nbc, cbs, msnbc, cnn and most major newspapers in american.

And it's the "republican" media machine?
10:50 AM on 09/14/2011
You've obviously fallen for the Republican mythology. All of the major news outlets are owned by wealthy Republicans, and they all want to vote the path of lower taxes and more media consolidation. I could go on about how NBC and MSNBC are owned by GE, our greatest outsourcer and war profiteer. ABC is owned by Disney, and if you need a list of the Michael Moore projects they've tried to scuttle, while broadcasting rightwing revisionist history of 9/11, I'll be happy to provide one. Additionally, ABC owns the AM radio stations the rightwing propagandists use. CNN only looks reasonable next to Fox's rabid delusional fear-stoking - CNN, while pandering to the same low-info common denominator, is actually broadcasting content well to the right of Nixon.
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ThatsTheTheWayItIs
religion, ideology, partisanship are delusional
05:25 PM on 09/12/2011
Partisans are always blind, just don't get it. Obama is fighting for jobs, US economy. If Obama were partisan he'd propose jobs bill to please Progressives, one that Repubs wouldn't pass. Then he'd use that against Repubs in 2012. Exactly what you all wanted here. Obama is fighting for everyone, including those who voted against him. When will you all figure out Obama is a not a partisan? Obama warned you in his June 2009 speech in Cairo:

So no matter where it takes hold, government of the people and by the people sets a single standard for all who would hold power:  You must maintain your power through consent, not coercion; you must respect the rights of minorities, and participate with a spirit of tolerance and compromise; you must place the interests of your people and the legitimate workings of the political process above your party.
02:21 PM on 09/13/2011
Ha ha ha. Today's headline reads "Obama will accept parts of his bill." He knew this going in. he did propose a bill that the Republicans won't pass for the most part. The Republicans are going to give him only the conservative parts to pass, like Obama's proposal to cut Medicare and Social Security. A majority of Americans wants to increase taxes on the wealthy and stop the wars, but somehow our system can't respond to these clear majority views. The Democrat/Republican "partisan" narrative is a distraction so that both parties can actually do the thing they both agree on: increase corporate power in America at the expense of regular people.
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Micheal Johnson
04:31 PM on 09/12/2011
The real issue in 2012 will be jobs. This situation will be better by the time of the election. This will be due to the cyclic nature of the economy; not Obama. However those standing in the voting line will credit him. The Reps haven't done a very good job of getting their message across. In order to win they need to get behind a candidate. Don't worry how much of a Republican he is, worry about whether he can beat Obama. Who cares how coservative he is if he can't win?
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dcflush
The nickname is about poker, not politics
05:14 PM on 09/12/2011
Wow, you think the Republinuts haven't done a good job of getting their message across?

I think that's the ONLY thing they've done well.

That message being: Obama bad, give more money to the rich (ahem, we mean cut taxes for the 'job creators'), smaller government (well, until we get into office of course, then we'll ramp up military spending as always and run up the deficit as usual),

Oh please oh please, inform us as to what message they aren't getting across well.
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smcircle
If we don't stand up for us who will?
05:24 PM on 09/12/2011
The "Reps" might have to build a candidate from scratch who will do as we need of a President. Maybe they should watch the movie Weird Science to get even some ideas... All I know is while watching these Republicans in debate and on the news I have to wonder for what kind of Democracy do they want to lead and for whom? First of all they should a least appear as though they care about the not-wealthy. Maybe there should be a huge fund to pay all the costs for the candidates' campaigns but only after it is outlawed to give campaign funding by anyone. The pay-backs by the winning candidates to their “investors” with tax money and goodies would be an enormous budget cut. Let's ask George W. and the big oil Companies and this kind of huge dividend-like bay-back goes on so often. That and cutting unnecessary projects and keeping us out of wars we shouldn't be in might even pay off our national debt many times over fairly quickly. And maybe there might not be a need to raise the spending limit 150 or so times in the next 250 years. Then we should be able to deal better with jobs which as we know is a big important issue. But can we really get those on either side of the aisle to agree on anything in front of the cameras as they do behind them?
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BigWetTears
Feeling Your Pain as the Oceans Rise
04:25 PM on 09/12/2011
Hum??? . . "O"blivious told us not to Politicize this . .
Oops! . . once again the Progressive Double Standard is showing . .
Oops! again . . . is this Post "Too Hot to Handle"?
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PoliSci2008
Independent
04:18 PM on 09/12/2011
Suppose...Hillary Clinton challenges President Obama?

Suppose....All the Caucasus backs her?

Suppose...All those who voted Obama in 2008, voted H Clinton in 2012?

Suppose...Obama can't count on the "black vote" with 16% unemployed and the black vote didn't win him the Presidency.

Suppose...Hillary can count on her base, Independents, moderate Republicans, and Women and the "minority vote" who represent majority of US population!!!


Suppose...2013 begins with President Clinton...You get 2 for the vote of one!!

I'm in.

Signed,

Reformed Hillary Clinton Supporter, former Obama Supporter.
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mcartri
04:43 PM on 09/12/2011
PS 2008, suppose the Titanic pops-up in your back yard tomorrow morning.
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JimR
05:09 PM on 09/12/2011
Suppose you acknowledge that she lost, and it's over.
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PoliSci2008
Independent
05:54 PM on 09/12/2011
Suppose you look to the future.