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Steven Cohen

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Hopeless Obama

Posted: 09/06/11 11:12 AM ET

President Barack Obama is the brightest guy to be president since John F. Kennedy. He's well-educated and has the ability to inspire, but his presidency has slipped into the gray mists of fog, confusion, and drift. The stimulus probably averted economic disaster, but was too small to really jump-start the economy. The budget deal and the debt limit debacle could not have been played much worse. In recent days the White House staff couldn't even manage to schedule a jobs speech without messing up, and no one believes the president has the political capital needed to get a jobs program through Congress anyway. The economic crisis has become a crisis of confidence, made worse by a president whose every move seems governed by political calculation about the 2012 vote. As bad as all of that has been, I still hung on. I was convinced he could turn it around. That changed last week, when a misguided president and his equally misguided team of economic and political hacks threw the new air pollution rule under the bus. Now I give up. I will not stay home on election day, and I'm sure I will end up voting for him, but hope has turned into hopelessness.

The president and his second rate experts have given currency to the idea that pollution regulation is job-killing and bad for the economy: Shame on all of them. Since 1997 OMB has reported that the benefits of all federal regulations have far exceeded their costs. OMB submits a report each year to comply with the Regulatory-Right-to-Know Act. According to the draft 2011 report, the benefits of federal regulation totaled:

"...between $136 billion and $651 billion, while the estimated annual costs are in the aggregate between $44 billion and $62 billion. These ranges reflect uncertainty in the benefits and costs of each rule at the time that it was evaluated."

Last June, in her excellent summary of OMB's report, Katie Greenshaw of OMB Watch noted the prominence of air pollution rules in the federal regulatory analysis. According to that summary:

"The highest costs and benefits come from the U.S. Environmental Protection Agency's (EPA) air pollution rules. Specifically, the Clean Air Fine Particle Implementation Rule has the highest costs and benefits of any rule, with estimated annual costs of $7.3 billion and benefits ranging from $19 billion to $167 billion. The benefits, which far exceed the costs, include prevention of premature deaths, heart attacks, and respiratory illness among Americans."

Greenshaw further observed that:

"Although many House Republicans claim that regulations are too costly and negatively impact jobs, this report presents findings consistent with recent independent research from the Economic Policy Institute (EPI) concluding that the benefits of regulation greatly exceed the costs. The EPI research also indicates that "regulations do not tend to significantly impede job creation."

Issac Shapiro of the Economic Policy Institute, writing specifically of the new air pollution rules that the president and his "brain" trust just discarded, concluded that:

"... the dollar value of the benefits of the major rules finalized or proposed by the EPA so far during the Obama administration exceeds the rules' costs by an exceptionally wide margin. Health benefits in terms of lives saved and illnesses avoided will be enormous. Expressed in 2010 dollars:

• The combined annual benefits from all final rules exceed their costs by $32 billion to $142 billion a year. The benefit/cost ratio ranges from 4-to-1 to 22-to-1.

• The combined annual benefits from four proposed rules examined here exceed their costs by $160 billion to $440 billion a year. The benefit/cost ratio ranges from 12-to-1 to 32-to-1.

Shapiro also writes that the air rules impact only a "tiny sliver" of the overall American economy and so their impact on the rate of economic growth is likely to be small -- either positive or negative.

The problem is that the benefits measured by OMB come to all of us, but some of the costs come to the kind of people who donate money to our cash and carry political campaigns. Obama and his advisors have rejected the sustainability perspective on economic growth. The disgusting part of this turn of events is that they know better. They understand that a clean environment has many more economic benefits than costs. First, there are reduced expenditures for health care. Second, clean air has economic value that is difficult to quantify. Imagine you are a wealthy business person thinking about moving your business or your family. Are you going to move someplace where the air is orange and makes your kids sick? Third are the benefits of technological innovation undertaken to comply with regulation. In seeking to meet new standards, engineers are given the resources to develop engines that pollute less or air conditioners that use less electricity. All of these factors stimulate rather than stunt economic growth.

It's true that regulations are not cost free. Little of value in life is. It costs time and money when a driver stops at a red light. But the cost is lower than the cost of a road system without rules. Stopping is cheaper than crashing.

Killing the air rule was pure politics. But it was bad politics. I guess his political consultants hope that President Obama can neutralize his opposition by moving in their direction. The only problem is that instead of looking moderate, the president looks unprincipled. I may have no place better to bring my vote, but I have lost most of my motivation to support the president. While civic responsibility will bring me to the polls, many of the people who voted for President Obama in 2008 are going to sit on their hands and stay away from the voting booth in November 2012. By caving into the unthinking short-term interests of the most reactionary segment of the business community, the President managed to abandon his principles and disappoint his allies in the business and environmental community. I have a difficult time seeing the political benefit in adopting the position of people who will never support you.

The moment the president discarded EPA's carefully reasoned, scientifically sound air pollution regulations was the moment I abandoned hope. My guess is that I was not the only one to head toward the door.

 

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President Barack Obama is the brightest guy to be president since John F. Kennedy. He's well-educated and has the ability to inspire, but his presidency has slipped into the gray mists of fog, confusi...
President Barack Obama is the brightest guy to be president since John F. Kennedy. He's well-educated and has the ability to inspire, but his presidency has slipped into the gray mists of fog, confusi...
 
 
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12:21 AM on 09/18/2011
We agree it's a "Hold Your Nose" election. Our website "holdyournoseandvoteobama2012.com" and bumper stickers expressing the same may help to get a few of the disenfranchised to the polls. It's critical that the next Supreme Court vacancies are filled by a Democratic president. Remember Citizens United.
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TheTightwireGuy
Attempting to balance reason and passion
09:38 PM on 09/07/2011
From the fumbles that Obama's team has made, I am wondering who his team believes will do the hard work of voter mobilization next year? Where will all those bright-eyed young and enthusiast 2008 supporters be next year? And where will all those enthusiastic independent 2008 Obama supporters be on the eve of his re-election attempt? Probably like the younger formerly bright-eyed: at home and shaking their heads over the question of whether to bother to vote at all. Because Obama has failed to deliver the "change" they voted for in 2008. In fact, he didn't seem to even try.
10:09 AM on 09/07/2011
The republican agenda since the Reagan revolution has been to dismantle the New Deal. Bit by bit.
De-regulate everything. Almost done. Bust labor unions. Done. Privatize everything. Getting there.
Convince at least one half of the people that government is the problem. Done. Convince young people to lower their expectations, and to know without a doubt that SSI and Medicare will not be there for them. Done.
The only surprise here is that with Democrats like Clinton and Obama it is all happening at warp speed.
Say goodbye to the America I once knew? Done.
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Bill Duckworth
It is a DOOZY
08:51 AM on 09/07/2011
I abandon him for the WAR Foreign Policy and EXTENDING the Bush Tax Cuts

Obviously there is more.

Like Tax Cuts for the Rich to lower government Revenue and create MORE BUDGET DEFICIETS, debt for the worker to PAY

0-Sum-Gain for th worker Pay-Tax long before the jobs ever come back
0-Sum-Gain for the Stock Trader is when Consumption is 0 and Fixed Prices don't sell NOTHING
T-Haight
What was wrong with federalism?
08:12 AM on 09/07/2011
Carefully reasoned and scientific? Please.

The EPA has no statuatory requirement to evaluate costs of proposed rules, and the OMB, which works for the White House, isn't exactly an unbiased judge of costs since they both work for the same administration. What lowering the ozone threshold would have done is put over 600 counties, mostly in dense urban areas, into non-compliance. That triggers a whole new set of regulations when it comes time to try to open or expand an industry, and makes anything industrial effectively impossible to get approved. With unemployment over 9%, preventing a business that wants to expand and hire new workers from doing so is insane.
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love2lindy
Progressive Party, NOW!!!
08:34 AM on 09/07/2011
There are businesses that want to expand? Where? What have they been waiting for?

Tax cuts? - been done for 12 years.
Environmental cuts? - done for 6 -7 years.
Wage cuts? done.
People desperate for jobs? done, done and done!
03:48 PM on 09/07/2011
tax cutting since reagan..more like 30 years...and still the neobastards,uhm conservatives, have nothing to show for it...we're still waiting on that trickle to come down folks...i guess they like 'voodoo economics' because like their 'god', its gonna come some day, we just dont know when...soon...but we dont know when, anyone else dig this
T-Haight
What was wrong with federalism?
08:15 AM on 09/08/2011
Believe it or not, businesses are constantly expanding and relocating. Note that there are about 400,000 people who file for new unemployment benefits EVERY WEEK. Yet somehow, total unemployment is only around 15 million, and has been around that for well over 6 months. How is that possible? Because people are constantly being fired, hired, layed off, etc.. As one business shuts down, a competitor expands. Yet you can't expand when you're in a county on the EPA's list.

Other companies are waiting to find out whether they will be hit with, I don't know, vast new regulatory burdens. Between the thousands of new rules dictated by Dodd-Frank, the uncertainty surrounding new health care regulations, an EPA bruising for fights, a new "consumer financial protection agency" with undefined powers, and other calls for new taxation, it's not like you can confidently invest in American industry right now.
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rlellis711
EMC(SW) Retired
07:49 AM on 09/07/2011
"President Barack Obama is the brightest guy to be president since John F. Kennedy",???? How do we know this???
11:22 AM on 09/09/2011
great point
ThinkCreeps
Seriously, it's time.
07:14 AM on 09/07/2011
The president is - almost by definition - a politician. The last three presidents who were only marginally political were Ford, Carter and Bush I: all single-termers.

Politics remains the art of the possible. Not much is possible at the moment. Doing anything at all in opposition to both the boneheads in congress and the embedded W fifth columnists in the civil service is an achievement. It just doesn't look that way.

With the political system as it is, there is no winning. With education and general smartness as it is about the country I fear that's not going to get any better.
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Bill Duckworth
It is a DOOZY
09:06 AM on 09/07/2011
FORD, pardon Nixon and Served on the Warren Commision. Need I say more?

Bush1 - was heavily involved with the "Pay of Pigs" and "Operation 40" before becoming Director of the CIA. Need I say more?

Alot of the politicsa come later like Reagan actually RAISED TAXES a 11 times and Bush1 "read my lips" and of course with out the Bush Tax Cuts or Extention of the Bush Tax Cuts we would have Bill Clinton TAX on the Rich and Surpluses

But then you say the LACK of smartness. Smartness has little to do with education I am affraid for several reasons Many lessons have to be relearned after you gain smartness to be smarter
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Robert Frank
My last name is FRANK so thats what I am..
07:14 AM on 09/07/2011
perhaps after the 2012 elections when Obama gets re-elected and he doesn't have to worry about elections anymore is when he will say to hell with compromising with the right-wing idiots and finally get some of the main things he promised done...one can only hope
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love2lindy
Progressive Party, NOW!!!
08:36 AM on 09/07/2011
Hope? That was one of the promises Obama broke first.
11:22 AM on 09/09/2011
LOL
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vietveter
To the FAR LEFT
06:15 AM on 09/07/2011
DEMS make better

SUPREME COURT

pics, that is the only

D I F F E R E N C E
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DJleary
06:00 AM on 09/07/2011
It's pathetic to just declare you will "probably wind up voting for him".
The guy is a run of the mill Chicago poll, who you rightly observe is motivated by the 2012 vote.
Even throwing his base under the bus as part of the strategy.

It persists because of the lemmings who claim outright that they will vote him anyway.
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Robert Frank
My last name is FRANK so thats what I am..
07:15 AM on 09/07/2011
unfortunately there is no one else..the right has gotten together a collection of total idiots so any vote for any of them is completely out of the question so it leaves Obama
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DJleary
08:15 AM on 09/07/2011
Robert,
Have respect for yourself and your vote. Write in 2012.
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Bill Duckworth
It is a DOOZY
09:14 AM on 09/07/2011
Lessor of 2 evils is EVIL. You cannot see that now, you never will

Write in Ron Paul, Dennis Kucinich or Sara Palin
This user has chosen to opt out of the Badges program
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Hector Boag
You want what??
05:45 AM on 09/07/2011
The curtain has been pulled back and we can now see who this "brilliant" wizard really is!!

It's election time and he is courting wall street and big corporations for campaign money. His promises have gave way to politics as usual on the backs of the environment and the American people.

Thanks Pres Obama, not!
05:25 AM on 09/07/2011
If you're announcing your vote in advance, then Why bother voting for someone whom you disagree with? That is absurd. How about doing a write in for the guy you want? If you want to show your disapproval then don't reward the behavior you disagree with by voting for that person. Simple as that, so stop whining.
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DJleary
06:02 AM on 09/07/2011
I'm with you Ready44.
Continue to remind everyone you don't need to vote for Obama.
Write in your vote and get off the merry go round.
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love2lindy
Progressive Party, NOW!!!
08:39 AM on 09/07/2011
Yeah! Write in who? I like Alan Grayson in Florida.
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vietveter
To the FAR LEFT
06:18 AM on 09/07/2011
They whine because the t party

scares them worse than Obama
02:55 AM on 09/07/2011
Welcome to the population of disillusioned Obama voters. I certainly won't vote for him. But to be honest, if I knew my one vote would make the difference between President Obama and President Pea Brain Perry, I'm voting for Obama in a flash.
05:27 AM on 09/07/2011
I think you should give consideration to voting for perry in that circumstance. Once the country gets as bad as it can be with wealth disparities, labor exploitation etc, then the people will have a true popular revolt and not a false one ushered in by the "hope and change candidate of 08"
02:47 AM on 09/07/2011
Sadly, killing the air rule with its tougher standard won't have the desired effect of stimulating jobs. Companies will merely bank the money or invest it abroad. Obama unprincipled? I don't think so. In fact, I believe he's one of the most principled presidents ever, and people get this as evidenced by their continuing high regard for him personally as opposed to his low ratings on performance.
02:42 AM on 09/07/2011
But if Obama doesn't capitulate now, then he won't be re-elected so he can capitulate more later.