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Robert Kuttner

Robert Kuttner

Posted: September 12, 2010 08:33 PM

Maybe Not Such a Mid-Term Blowout

What's Your Reaction:

Winston Churchill once said that you can always count on Americans to do the right thing--after they've tried everything else.

The Obama administration has kept progressive economic policies to be used as a last resort -- In Case of Emergency Break Glass.

Well, the emergency is here in the form of a protracted recession and a threatened mid-term election blowout. And sure enough, President Obama is discovering his inner populist.

Rejecting the advice of his departing budget director, Peter Orszag, Obama has insisted that the Bush era tax cuts, which expire this year, be extended for "only" about 98 percent of Americans, but not for households making over $250,000 a year. Hard to argue with that, but watch the GOP try. The more the Republicans hold hostage this plan for tax relief for millionaires, the more voters appreciate whose side they are really on.

Obama has belatedly proposed a $50 billion infrastructure program, to put Americans back to work. He should have proposed four times as much, and long ago, but it's a start.

He has begun smoking out Republican inconsistency and hypocrisy on issues like regulation of banks, where the GOP tries to be anti-Wall Street but also anti-regulation. And how can the right be in favor of both fiscal discipline and tax cuts for the rich?

The right may have peaked a little too soon. The Gallup Poll for the last week in August showed a ten point swing back to the Democrats in congressional match-up races.

How did this come about?

In general, voters unhappy with the recession are inclined to vote against the incumbent candidate, but so many of the Republicans are so crazy that voters may think twice about voting for them. The Tea Party is no longer that different from the mainstream Republican Party, and it doesn't speak for most Americans.

Obama has been uncomfortable in the role of partisan, but he has gotten off some good speeches since Labor Day--and not a moment too soon.

The Republicans have already effectively nationalized the 2010 mid-term election, portraying it as a referendum on Obama. But the president, even with popularity ratings of around 45 percent, is more popular than most politicians. And if he can smoke out Republican ideas, most voters will notice that they agree with Obama more than they agree with John Boehner and the GOP. .

Here are nine ideas for Obama to hold down Democratic losses in the mid-term.

One. End the strip-tease and nominate Elizabeth Warren to head the new Consumer Financial Protection Bureau. Nothing would better identify the Republicans with Wall Street and nothing else would so energize a dispirited Democratic base. The nastier the confirmation fight, the better. Or do a recess appointment and let the right complain about Warren's concern for consumers rather than bankers.

Two. Make it clear that your administration will not support cuts in Social Security. Declare that if the fiscal commission comes up with a formula that reduces benefits for seniors, its recommendations will be a dead letter. Dare the Republicans to follow suit.

Three. Sign an executive order requiring that companies that bid on government contracts have good wages and working conditions, and follow labor laws. The labor movement is fed up with being the caboose on your train. Nothing would energize trade unionists as much as a commitment to good jobs at good wages.

Four. Ask Republican leaders to support you in disavowing the burning of the Koran and any other sacred books. Your recent remarks on this were terrific. Here is another issue that demonstrates just how lunatic-fringe a lot of Republicans have become. Force major Republicans to choose between siding with Jefferson and religious tolerance or Hitler and book-burning.

Five. Send Congress more emergency recovery legislation--job creation, aid to the states, extended unemployment benefits--and dare Republicans to vote against it. It doesn't matter if a few misguided Democrats oppose you, too. The main blockage of a stronger recovery program is the Republican Party.

Six. Propose a six month tax holiday for payroll taxes. Ask for the Republicans' support. This would provide direct tax relief to working people and lower the cost of creating jobs. It would provide more of a tonic to the economy and more practical help to American families than any of the Republicans' proposed tax cuts. Make up the loss to the Social Security trust funds with a temporary surtax on people making over $10 million a year.

Seven. Start playing hardball with Chinese mercantilism. The entire Chinese industrial system is a violation of the rules of the World Trade Organization and an assault on American jobs. Close students of trade politics have been pointing this out for decades. The New York Times just woke up to it, and put the story on page one.

Eight. Send Congress legislation for a direct program of mortgage refinancing to help innocent homeowners whacked by the fallout from the subprime scandal and the collapse in housing prices. Point out that the previous program of voluntary relief in monthly payments failed because banks refused to cooperate with it.

Nine. Devise your own program to reduce the deficit, beginning with a crackdown on offshore tax evasion and a tax on short term speculative financial trades. The louder that Wall Street screams, the better. The more the Republicans defend their banker friends, the more you identify with regular people.

Most voters begin to pay attention to mid-term elections only after Labor Day. It took Obama too long, and he still is not quite in high gear, but he is beginning to sound like the guy a lot of us voted for. More, please.

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

 
 
 
 
 
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HUFFPOST PUNDIT
TRex86
Enjoying life in West Ohio
07:28 PM on 09/15/2010
All good ideas. How about this? End the payroll tax and surcharge millionaires to support the program. One way or the other the top brackets are going to see the $106,000 cap eliminated. They can pay the IRS April 15 or have it collected from their paychecks as a 12.5% increase in FICA. It's about time to end the regressive payroll tax.
10:40 PM on 09/14/2010
68Namvet
there to some that I can agree with but it is evident yet never been in the military. Our military is overburdened because of the massive cuts in the past. Cuts that were made in the Bush administration, and the Clinton administration. Is what put our military at a disadvantage. but we do have a secret here as secret weapon would just send you and individuals like you in the combat house hows that? combat training requires extensive training, and just activating a human who only meets on weekends doesn't make them proficient no matter what their training reports show. National can function if they train five and six days a week we will get proficient, however reporting on weekends doesn't prepare an individual for combat. You can take an individual and stick stick them in an active-duty unit and you may get away with that, will
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68Namvet
Sioux, French, German, Jew, American mutt
11:48 AM on 09/15/2010
People like you are really annoying. Don't belittle my service. I spent over 8 years in the U.S. Army as an Airborne Ranger and spent 13 months as a combat infantryman in Viet Nam only to come home and be spit upon and called a baby killer.

My comments were directed toward the maintenance of the 238 military bases we've maintained in Germany since WWII, and Italy, Japan, Turkey - and Korea since that conflict ended, and Kuwait, Saudi Arabia, Qatar, since the first gulf war and on and on.

You're the one that seems to think there is value in war and killing. Might I suggest you join up and try it - it's not so glamorous as you seem to think!
06:59 PM on 09/15/2010
I often wonder how many people would be so eager to go around starting wars and invading other countries if they'd ever actually taken part in it themselves. Seems like there's an awful lot of chickenhawks nowadays.

Thank you for your service. I'm sorry to hear about your experiences upon returning home though. It's always dismaying to me when I people allow their emotions to overcome logic, and turn a fair and just cause (such as a war protest) and take it too far, such as you described.

I'm fanning you though - I can tell from reading a few of your other comments you're someone whose opinion I'd find interesting and valuable.
10:27 PM on 09/14/2010
You've have to be kidding, are you trying to confuse the issue of over spending, everything that congress has done has been a failure. Congress still giving special deals for votes. Some places such as prison would classify this as a bribe but Congress has a different name for. Unemployment was posting to drop to at least 8.0 and what is amount 9.6. We had the massive stimulus bill that was both create jobs how many millions of dollars with the poor girl standing? Healthcare was posted yet free healthcare not have to pay for their premiums just so they would cast their vote a certain way? How many millions of dollars went to Virginia so she would vote a certain way? please tell me what Congress has done that would deserve them to return? In 2006 who had the majority in Congress and a return to the House and Senate who was this what you said the Democrats so if we actually blame President Bush for the economy then wouldn't we also have to blame Congress who is and has the majority which is Democrats. The president's job is to sign bills into law correct, Congress's job is to create those bills that the president signs correct so that means that not only President Bush is responsible for the economy but so was a Democratic Congress who was aware of the housing prices which caused a domino effect
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HUFFPOST SUPER USER
wa-st-concerned
05:19 PM on 09/14/2010
Hope this gets to Obama's eyes and ears.......
02:51 PM on 09/14/2010
All year I've suspected that Obama (and the smarter Dems) were following ancient good advice - "When your enemy is destroying himself, do not interfere." Then, after the GOP/TP spins off into frothing at the mouth fringe world as they have so done, the Dems would slam them come mid-September when all but the 24/7 politics junkies (like me - woot!) start making up their minds.

If Obama adopts even HALF of your excellent suggestions I would (once again) believe that maybe we elected a true Progressive president after all.
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01:53 PM on 09/14/2010
Well enough of this must do the primary vote duty now... Anyone with an (I) or (D) will soon be deposited into the dustbin of bad history. Many unqualifieds to unhack, many BS artists to oust. I've done all the homework now time to join the revolution. Lot of uncomfortable (I)'s out their I'm sure, hope they have a day job waiting. Nah, couldn't care less was just being nice. Ovahh
03:00 PM on 09/14/2010
Yeah right. Your GOP lost bigtime in '06 and '08 and trashed America so badly that America chose a young, skinny black man with a Muslim name over the experienced white war hero McCain. Since the Big O's inauguration the GOP has proposed that we "stay the course" on GOP policies and otherwise tried to stop everything Obama has done to start to clean up George Bush's mess. The majority of Americans have gotten a clue and won't just blindly vote against the incumbents like they used to.
Crow all you like. Enjoy! my friend.
Time reveals all things and we hope to hear from you come November 3.
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04:36 PM on 09/14/2010
Well just got back from the polls my friend, and all those 06-08 replacement screwups, your heroes I think, where on the dem ballot. As an independent I pulled a dem ballot and voted against them as is the strategy here. The damage all these guys did IS reversible. They just happened to be Liberal Democrats this time. What you need to understand is not what is dem or republican, is what is the best for the country. And all this BS loyalty to a particular party is ovahh, it will stop not only you but everyone you know. Do you think these people deserve your loyalty that's your question. Do you think they give one spit about us? Play to your passions but play it on your terms not there's. Follow the money and keep a suspicious eye.
05:51 PM on 09/14/2010
AN EXCELLENT REBUTTAL. I BELIEVE THE TEA PARTY DESTROYED THE REPUBLICANS CHANCES IN NOV.
12:27 PM on 09/14/2010
Great article, great ideas. Now, if the WH adopts even a couple of them, things will look okay in November.
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68Namvet
Sioux, French, German, Jew, American mutt
11:55 AM on 09/14/2010
Your plan is a small start - but, what is needed is the dismanteling of the great American Empire. We don't need to be the world's policemen and try to force our way of life on everyone else. We need to lead by example, not by military force. So - heres a better plan:

First, end the wars in Iraq and Afghanistan. Immediately withdraw ALL troops from both countries. Maintain air and satellite surveillance and a small (no more than 5,000 member) special forces strike group for short duration operations to destroy any found Al Qaida training or operations bases.

Second - close 90% of the over 1000 military bases worldwide - and reduce the forces of the remaining bases by 90%. (Seriously - would we be any less likely to attack - say North Korea - if they attacked 4,000 troops as opposed to the 48,000 we have there now?)

Third, cut the defense budget by at least 50% (making us spend more than all other countries defense budgets combined instead of over twice all others combined). This would return between $3.5 to 4 trillion to the U.S. treasury in the next decade.

Forth - invest $2 trillion in infastructure building in this country, and use the remaining $1.5 to 2 trillion to pay down the debt.

Fifth - Audit the FED. Close the FED. Have the Treasury and Congress take over thier Constitutional requirements to control the U.S. money supply.
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HUFFPOST SUPER USER
wa-st-concerned
05:31 PM on 09/14/2010
Basically agree except for the extreme cuts 50% rather than 90% and closing the FED. There is a reason for separation of the FED and the dept of the treasury.
05:53 PM on 09/14/2010
AN EXCELLENT SUMMARY, BUT DO YOU REALLY WANT CONGRESS TO GET HOLD OF OUR MONEY SUPPLY
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68Namvet
Sioux, French, German, Jew, American mutt
08:09 PM on 09/14/2010
As compared to a "for profit" private bank? Absolutely! - Do you know how the FED operates? Here's a brief summary:

In simple terms, the United States Government borrows money from the Federal Reserve Bank with interest. Say the Government wants $1 billion. The Federal Reserve prints $1 billion - based upon no hard asset - and lends it to the Government at a high interest rate. The bank did not have the original money, it created it and made a bookkeeping entry - like you writing yourself a check without funds and cashing it. The Federal Reserve controls the flow of money, making it tight and creating unemployment or printing more than actually exists and creating inflation. It is, in essence, a paper corporation, which controls the entire economic well-being of the nation. And, unfortunately, is concerned only with producing a profit irrespective of any harm done to the nation.

Article I, Section 8, Clause 5, of the United States Constitution provides that Congress shall have the power to coin money and regulate the value thereof and of any foreign coins. But that is not the case. The United States government has no power to issue money, control the flow of money, or to even distribute it - that belongs to a private corporation registered in the State of Delaware - the Federal Reserve Bank
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janmB
loves life
09:53 AM on 09/14/2010
The number of announced layoffs fell to the lowest monthly total in more than a decade in August, according to a report by employment-services firm Challenger, Gray & Christmas.
Hiring Is Up Across All Sectors The lack of massive culls of workers from nation's largest firms is another positive indicator that the U.S. job market may finally be headed in the right direction. Gone are the epic cuts announced in 2008 and 2009, when Citigroup (C), General Motors, Berkshire Hathaway (BRK.A) and Starbucks (SBUX) each cut tens of thousands of jobs.

Further, as U.S. News & World Report points out, every major employment sector is hiring, according to a sampling by job search engine Indeed.com. In the 12 industries Indeed.com monitors, hiring rose significantly in August compared to a year ago. The biggest surge was in transportation, where job postings jumped 119%, but information technology, manufacturing and media and newspapers also saw strong gains, up at least 61% above year-ago levels
www.dailyfinance.com
09:25 AM on 09/14/2010
This is a well thought through plan. Sure you don't want to be Obama's official advisor? I hope someone at the White House reads this. It is too painful to see them doing many of the right things and flopping around politically.
12:27 AM on 09/15/2010
Alas, there is another possibility: that the Democrats only pretend to be politically incompetent wimps. That way they lose one of the chambers of Congress and there goes our big chance at real change in how - and for whom - America is run. The cynical me worries that the Dems also serve Big Money but they're just not as obvious about it as are the Repugs.
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HUFFPOST SUPER USER
eduardo fernandez
09:16 AM on 09/14/2010
With the facts revealed the baggers go quiet !
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HUFFPOST SUPER USER
wa-st-concerned
05:34 PM on 09/14/2010
I've found that when you ask them for the facts behind their objections, they just kind of flail around going ....uh, uh, uh, well, they said our rights are being taken away. Who said? well, the reporters.... What reporters? Beck, Hannity, Rush, Sarah (or whomever...). Ok, what are the facts behind their claims? uh, uh, uh, they say they have them......
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HUFFPOST SUPER USER
eduardo fernandez
09:11 AM on 09/14/2010
More importantly, they're just wrong about the efficacy of the policy.

[L]etting people who already have plenty of money keep a little bit more of it doesn't boost demand in any meaningful way. The wealthy will save, rather than spend, that money. The deficit will be bigger and demand won't be any higher.

This is why the CBO rated tax cuts for the wealthy as the least-helpful of 11 forms of economic stimulus they evaluated. This is why former McCain adviser Mark Zandi of Moody's estimated that making the Bush tax cuts permanent would return a mere 29 cents of economic growth for each dollar the government spent on the tax breaks. This is why Bloomberg wrote this today: "Hand the wealthiest Americans a tax cut and history suggests they will save the money rather than spend it."

Despite all of this, Republicans are prepared to hold middle-class tax breaks hostage -- and Ben Nelson is inclined to help them, while Joe Lieberman repeats their talking points.

http://www.washingtonmonthly.com/
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HUFFPOST SUPER USER
eduardo fernandez
09:10 AM on 09/14/2010
HOW TO LOSE AFTER BEING DEALT A GOOD HAND.... The high-profile fight of the moment is over tax policy, and by most measures, Democrats are in a reasonably good position. Republican leaders are arguing amongst themselves; polls show President Obama's proposal to be considerably more popular than the GOP's; and just weeks before the midterm elections, Republicans are prepared to fight tooth and nail to hold middle-class tax cuts hostage.

It's not a bad scenario for Democrats, right? The only way for Dems to screw this one up would be for them to start breaking ranks and siding with Republicans on the minority party's misguided, unpopular, and irresponsible plan, and start echoing bogus GOP talking points.

http://www.washingtonmonthly.com/
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HUFFPOST SUPER USER
Wm Hunn
Critical Thinking.....The Other National Deficit!
02:16 PM on 09/14/2010
"The only way for Dems to screw this one up would be for them to start breaking ranks and siding with Republicans ...."

Give them time, they'll get there. Lieberman already is.
09:10 AM on 09/14/2010
Ha,Ha,Ha,Ha,Ha,..... another fairy tale. Are u kiddn me..... Please. There won't even be a sink left, much less the kitchen or bathroom! America's eyes are wide open and the results are well deserved. Actions and attitudes have and will be brought home to roost in November.
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10:02 AM on 09/14/2010
Your reply is laughable. Thanks for the morning chuckle!!!
04:12 AM on 09/14/2010
The definition of insanity is to keep doing the same thing expecting different results. Spending more is insane.
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HUFFPOST SUPER USER
Sam1jere
Open-minded, sports lover, Red
04:35 AM on 09/14/2010
Nicely phrased. :-)
07:56 AM on 09/14/2010
Agreed. That is why we must allow the "tax cut" to expire on the wealthiest 2% of Americans. We simply can't afford such largesse at this time. Do you know that this tax perk is as large as the dreaded Obama stimulus? Surely you must agree that the time has come to allow these people to pay their fair share.
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HUFFPOST SUPER USER
super
03:11 PM on 09/14/2010
Notice the dead silence.