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The Bay State Lesson

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Posted on Jan 19, 2010

By E.J. Dionne, Jr.

In June 2008, before the financial implosions that would come a few months later, I asked two smart financiers who happened to be Republicans about the future of the seemingly shaky American economy.

Defying the moment’s conventional predictions that we would somehow muddle through, one of them offered a dire and uncannily accurate forecast. He explained why banks would blow up, investments would crash and the federal government would have to spend “at least $300 billion” to bail out financial institutions.

The other financial expert listened closely, took a sip from his drink, and smiled. “This,” he said, “would seem like an excellent time for the Democrats to take power.”

It wasn’t that he liked the Democrats’ policies. He just wanted the other side in charge when things came tumbling down. I doubt that my friend is as surprised as others are over the trouble Democrats face in Tuesday’s Massachusetts Senate race that forced President Obama to Boston on Sunday for a last-minute campaign rescue mission.

I have thought often of that exchange while watching Obama and the Democrats struggle with the country’s understandably cantankerous mood.

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Underlying so much of the self-assured political analysis pouring forth in our multimedia world over the Massachusetts showdown is a debate over the reasons for the decline of Obama’s popularity from the heights of last spring.

Conservatives blame it on “liberalism”—big government, big deficits, an overly ambitious health care plan, a stimulus that spent too much and other supposedly left-leaning sins of the Obama regime.

In explaining Scott Brown’s strong run for Ted Kennedy’s Senate seat, conservatives highlight the Republican’s strength among independent voters who are said to be alarmed over the ambition and reach of Obamaism.

Obama sympathizers counter that the president’s approval ratings are quite healthy in light of an unemployment rate that’s gone over 10 percent and a nearly unprecedented destruction of personal wealth.

The conservatives’ focus on ideology, they say, is an opportunistic way of distracting attention from the mistakes of the Bush years and the role conservative policies played in bringing us to this point. To cite ideology rather than the economy in explaining the poll numbers is like analyzing the causes of Civil War without any reference to slavery or the rise of the New Deal without mention of the Great Depression.

It’s not surprising that I lean toward the second set of explanations, and I wish that my conservative friends would be as honest as the Republican investor was in acknowledging that presiding over bad times always hurts the party stuck with the job.

But the success of the conservative narrative ought to trouble liberals and the Obama administration. The president has had to “own” the economic catastrophe much earlier than he should have. The vast majority of Americans understand that the mess we are in started before Obama got to the White House. Yet many, especially political independents, are upset that the government has had to spend so much money and that things have not turned around as fast as they hoped.

It’s also striking that most conservatives, through a method that might be called the audacity of audacity, have acted as if absolutely nothing went wrong with their economic theories. They speak and act as if they had nothing to do with the large deficits they now bemoan and say we will all be saved if only we return to the very policies that should already be discredited.

The few exceptions to this rule—Bruce Bartlett and Richard Posner, the authors of two bravely dissident books, come to mind—find themselves excommunicated from the conservative movement.

Yet the truth that liberals and Obama must grapple with is that they have failed so far to dent the right’s narrative, especially among those moderates and independents with no strong commitments to either side in this fight.

The president’s supporters comfort themselves that Obama’s numbers will improve as the economy gets better. This is a form of intellectual complacency. Ronald Reagan’s numbers went down during a slump, too. But even when he was in the doldrums, Reagan was laying the groundwork for a critique of liberalism that held sway in American politics long after he left office.

Progressives will never reach their own Morning in America unless they use the Gipper’s method to offer their own critique of the very conservatism he helped make dominant. It is still more powerful in our politics, as we are learning in Massachusetts, than it ought to be.
   
E.J. Dionne’s e-mail address is ejdionne(at)washpost.com.
   
© 2010, Washington Post Writers Group


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By bogi666, January 22, 2010 at 2:59 am Link to this comment
(Unregistered commenter)

You got it right rudyspeaks, thanks.

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By bogi666, January 22, 2010 at 2:49 am Link to this comment
(Unregistered commenter)

President O’Bushama is all fluff, just platitudes. His attempt at bipartinship with Republicans was foolhardy and a waste of time as the welfare of Republican country which consists only of the wealthy and soley for power. It was obvious he is misguided as he should have attacked the policies of the Republicans and Clinton that created the economic financial melt down.He should have been relentless but instead O’Bushama declared it is the future not the past that was important.Just as Jimmy Carter inherited the disastrous economy of the Nixon/Ford administration for which Carter tookthe blame. He was also toohonest for Americans. Had O’Bushama looked at history, the past, he knew or should have known that the Republicans were setting him up to take the fall for the Bush gang. With his Congressional and especially Harry Reid the Democraps didn’t know or want to use them to their advantage. O’Bushama lost his advantages sqandered away opportunity. As it stands the real POTUS is 1 Senator from Massachusetts, not O’Bushama.

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By DBM, January 20, 2010 at 1:21 pm Link to this comment

ITW,

Are you making an assumption that these leading Dems are NOT doing exactly as they intend no behalf of their funders?

The struggle you talk about is all theatre ... they have no intent to reform anything in any way that will slow the flow of money to the already rich.

No reduction in healthcare profits, no reduction in foreign adventurism, certainly no reform of the banking and finance cartel.

Either that or you know something that is not immediately obvious from the actions of these people.

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By Inherit The Wind, January 20, 2010 at 4:11 am Link to this comment

Worried? WORRIED????
Scared $#!tle$$, and rightfully so!

It’s time for Reid and Pelosi to stop playing nice, both with Dims and Rethugs and go to bare-knuckle anything-goes politics.

Remember that “carrot and stick” INVOLVES A STICK.  Use it on ANYONE for whom the carrot isn’t working, or who wants too many carrots. 

It’s time to enforce party discipline and stop “herding cats”.  Anyone doesn’t go along? They can be an “independent” come November!  They can be the most junior member on the paper-clip sub-committee.
They can be the LAST district to get Fed funds.

Pull out the stops, Harry! Stop f**ting around, Nancy!  Get off your duff, Barack!

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Paul_GA's avatar

By Paul_GA, January 20, 2010 at 3:41 am Link to this comment

Well, looks as though Scott Brown has won; I expect the pundits to react as if a cross was burned on the White House lawn ... publicly and with impunity.  wink

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By G.Anderson, January 19, 2010 at 10:29 pm Link to this comment

Actually, it was an excellent time for Democrats to take power, but then what was even better from the Republican point of view, was that they were too gutless to use it. Too shy, too demure, too snail like, plodding and approval seeking.

And then to top if off they handed power back to the Republicans by letting the bankers control their actions and febrile attempts at reform.

So here we are again, the shy and effeminate Democrats have just been beaten up by the big nasty republican bad boy on their way home from school. So now their running home to mommy, with tears in their eyes complaining about how unfair it is.

Unfortunately, for the Democrats school starts again tomorrow, and bully boy, is the new student. He’ll soon be basking in the light of the corporate media, and chumming up with Sarah Palin.

It’s likely that the birthers will get even more funding, to escalate their attacks on the legitimacy of the president, culminating in moves for impeachment after 2012.

One thing I know about bullies, you have to stand up to them, or you might as well go out and buy a tube of Vaseline and wear it around your neck, for next time.

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By gerard, January 19, 2010 at 9:18 pm Link to this comment

There was the agenda that got Obama elected.
Then there was the money that got Obama elected.

The overt agenda proposed changes thought of generally as “liberal.”
The hidden agenda proposed by the money that paid for the pvert proposals (advertising for candidates) came from conservative (business, corporate) poekcts.

After the election the business/corporate donors exerted influence behind the scenes to get appointments bent in their favor as payment for contributions.

The business/corporate agenda prevailed over Obama’s personal wishes causing corporate-minded staff appointments that disempowered him. Then the economic crisis increased corporate clout by engendering fear and a need for emergency action to bail out corporate interests.

Obama found himself unable to lead in the directons he promised, and the directions he personally wants, whereupon his masses of non-corporate supporters deserted him, leaving corporate power in charge.

The lines are drawn that make Obama almost irrelevant.  The future struggle is now even more plainly between corporate power and power of the people.

As people power cannot afford to buy media, it will have to come from person-to-person organization of majorities among the lower and middle class. I see no alternative to a lot of hard grassroots political work, person to person, door to door, neighborhood by heighborhood.

Massachusetts is the example of the alternative.

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By DBM, January 19, 2010 at 6:27 pm Link to this comment

What amazes me is the universal condemnation of the Democrats here juxtaposed with the years and years of conservative support which Bush W enjoyed.  In fact, ever since Reagan’s election 30 years ago the Republicans have been promising their base:

  *  A better economic future based on lower taxes and more opportunity
  *  Fundamental conservative “values” reform supporting Christianity, anti-abortion and other changes to social “ills”
  *  Enjoyment of the benefits of being the most powerful nation on earth through a “robust foreign policy”

... but what they’ve delivered is the rich getting richer and the middle class slipping into poverty (where life has become increasingly intolerable).  They’ve delivered very little in the way of “values” and, in fact, U.S. society is probably more liberal than in 1980.  They’ve delivered a lot of State intervention in people’s lives but not to further conservative values ... more like 1984 state dominance of thought and activity.  As for the “robust foreign policy”, this has been a near continuous string of foreign military adventures and a marked increase in the garrisoning of the planet.  This has emptied public coffers an delivered a whole lot more of that “rich getting richer” stuff.

How come the conservatives have not risen up in arms against the Republicans?  Judging from this thread, prospective Democrats seem to recognise when they’ve been fooled and ripped off!  I don’t buy it that conservatives are somehow “dumber” than liberals ... what gives?  The press?  Corporate campaign funding?  Lobbying power??

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By lichen, January 19, 2010 at 3:02 pm Link to this comment

Oh poor, stupid democrats.  They have no real politics of substance to differ from their BFF on the other side of the aisle, all they have is a measurement of power through the election of more corporatist war mongers wearing their party colors.  How sad.

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By Hammond Eggs, January 19, 2010 at 11:19 am Link to this comment

I love reading E.J. Dionne.  His bullshit is such a yock.

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By Scotty_Mack, January 19, 2010 at 11:02 am Link to this comment

I am so sick of the crap propaganda coming out of the washington post.  What relevance does it even have for this site? 

DieDaily: No there were no facts in the story because it’s a fairy tale.  The ‘liberals’ in the story are all corporatists who don’t give a damn about any traditional liberal values.  Can’t serve Wall Street and real people at the same time.

Samson:  Right on. The Democratic party has become obsolete.

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By Samson, January 19, 2010 at 10:37 am Link to this comment

Wanna know why Obama does what he does?

http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638

That’s the list of his top contributors, as compiled by the Center for Responsive Politics.  Note all the Wall Street firms that made the list.  Also notice the same website will tell you that he shattered every record for raising money, with $745 million.  The Democrats like to cite his small contributions, but that was only about 30% (with $200 considered ‘small’ ... lot of money to most of us).  The remaining $500 million of ‘large’ contributions alone would have easily shattered both of Bush’s records in 2000 and 2004 for the most bribed presidential campaign every.

Look at that list of top contributors, and you won’t have any problem understanding exactly what is going on.  Of course, anyone with any sense would have done this before the last election and never voted for Obama in the first place.  (I gotta sneak in my “I told you so’s”!)

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By Samson, January 19, 2010 at 10:33 am Link to this comment

Everyone ....

To beat big money, we need strong grassroots campaigns.

Strong grassroots campaigns take longer to organize and get rolling.

Start organizing now for the 2010 elections!

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By Samson, January 19, 2010 at 10:31 am Link to this comment

Yikes ... more Democrat propaganda from the WaPo.  They just crank this junk out, don’t they.

Mr. Dionne misses the obvious fact that Obama has exactly continued Mr. Bush’s policies towards the economy.  Pump billions into Wall Streets coffers.  Throw the smallest possible pittances out to struggling workers and Americans.  Constantly cite the deficit whenever asked to help ordinary Americans.  But spend a trillion or more on ‘defense’ to keep our overreaching empire and all the wars going.

Best of all worlds for the shadow Republican who feeds Mr. Dionne his stories.  Republican policies continue with little change, but the other corporate party gets the blame for things getting worse and worse and worse and ....

Is 2010 the year the left decides to vote for a real alternative and real change?  The Democrats certainly were not the answer.  And there’s almost always more than two names on the ballot.  Or there can be if you organize a real opposition campaign for real change in your area.

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By Fat Freddy, January 19, 2010 at 7:59 am Link to this comment

one of them offered a dire and uncannily accurate forecast

Would that happen to be Peter Schiff?

http://www.youtube.com/watch?v=2I0QN-FYkpw

DBM,

The only way to regulate the banks, is to eliminate regulations. Banks operate on a fractional reserve system. The Federal Reserve was set up in order to protect banks, and be a lender of last resort. The Fed allows banks to operate without the fear of bankruptcy. This system of banking can not be regulated, ever. It is simply not possible. The only way to control banks, is to remove their safety net. Please take some time and watch this video (approx. 42 min.):

http://www.youtube.com/watch?v=iYZM58dulPE

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By bozh, January 19, 2010 at 7:50 am Link to this comment
(Unregistered commenter)

Banking and bankers are of the US governance; thus are, at least partly, self regulated. Or one cld note and say or ask, Is banking in toto regulated by US governance which, in principle,represents or looks after interests of all americans?

Alas,the governance does not take equal loving care of all americans. It is of the system for rich to get richer.
Selling snake oil, used cars, wars,illusion is as american as apple pie.
And as long as WH, congress, clergy, ‘educators’, cia/army echelons, media, are selling snake oil, we will obtain breakdowns in the system; breakdowns also being systemic.

It cld be noted, if one wld study history for its protreptic value [instructional value], that US system of rule is not a novelty or specialty.
Telling americans that US governance is a novelty, represents the biggest snake oil sale ever.

In fact, US structure of society differs narry an iota from that of sumer, ottomnan empire, rome, UK, russia, et al. tnx

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By Paul_GA, January 19, 2010 at 7:44 am Link to this comment

Actually, methinks “progressives” had better abandon the Democratic Party and begin thinking outside the Democratic box; the Demos are just as bad as the Repubs are when it comes to betraying large chunks of their constituencies in the pursuit of power—or the struggle to maintain power once won, for that matter.

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By rudyspeaks, January 19, 2010 at 7:39 am Link to this comment
(Unregistered commenter)

Jesus! Another beltway DLC apologist “cooling the mark” as the predicted
electoral backlash to the Obama sell-out begins… continues, really. Does
anyone in the real world believe that our disillusionment was caused by
competent leadership that just didn’t match our out-sized expectations? The
size of the bailout wasn’t the point. It was that maybe $28 trillion was
committed to the perps (bankers) who caused this mess, when a tenth of that,
spent on a WPA-style jobs program to build a domestic, green energy system
and promote conservation (including mass transit and 21st century cars) would
have put people back to work, juiced the economy, reduced our balance of
payments deficit, and tackled global warming. What BO delivered was a raft of
unearned bankster bonuses. And how about those 2 wars against people who
never did anything to us? Or the fact that we’re now in 1 more (Pakistan), and
threatening 2 more. Or that this administration never lifted a finger for
effective healthcare reform? Dionne’s article today is more of the same. Look
for similar tripe from Ruth Marcus tomorrow. Is this “analysis” helpful?

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By DieDaily, January 19, 2010 at 7:34 am Link to this comment

Did anyone notice any facts in the article? Anyone?

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By carlinnyc, January 19, 2010 at 4:44 am Link to this comment

There is no question that the Democrats are terrible at framing questions. And Americans have an inability to recall and learn from recent history.

It is amazing at how quickly everyone has forgotten that Bush, and his policys got us into this mess. In the end, our country needs bold leadership, and neither party wants to, or is capable of providing it.

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By DBM, January 19, 2010 at 3:48 am Link to this comment

It was insane deregulation of the finance industry and general greed by corporate executives and boards that brought about the financial crisis and made it so deep.

When the Democrast stop “palling around” with the lobbyists and corporate criminals they should be prosecuting they’ll find the voters come right along with them.

Absent that unlikely event, who cares who wins?

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By writerman, January 19, 2010 at 2:15 am Link to this comment
(Unregistered commenter)

This is why, given the conservative bias inherent in our entire political system, that real conservatives, like the Republicans, have an inbuilt rhetorical and policy advantage, over “liberal” conservatives, like the Democrats.

In essence, even under the rules of the game being played out on the ritualized and symbolic “stage” of “democracy” the Democrats are always fighting with one arm tied behind their backs. They can never really, even if they were interested, defend themselves properly, because they cannot effectively attack the ideology, methods, or actions of their opponents with any real force, because to do so would be to question the rules of the game itself; this is, the “libral capitalist” model for society itself.

To question, or imply a willingness to initiate real, substantive, reforms; is not within the rules, that would really be transformational, and of course, that is forbidden and unrealistic, almost a thought crime, and a very, very, dangerous route to even hint at going down. That way lies a meeting with a magic bullet.

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