Bobo’s all into being helpful today. In “The Next Two Years” he says if President Obama and Democrats take a beating on Tuesday, he’s got a possible rebound strategy. Right, Bobo. You’ve got the best interests of Obama and the Democrats in mind, I’m sure… Prof. Krugman, in “Divided We Fail,” ponders how bad it will be if Republicans win control of the House next week: Very, very bad. Here’s Bobo:
President Obama is likely to suffer a pummeling defeat on Tuesday. But the road map for his recovery is pretty straightforward.
First, the president is going to have to win back independents. Liberals are now criticizing him for being too timid. But the fact is that Obama will win 99.9 percent of the liberal vote in 2012, and in a presidential year, liberal turnout will surely be high. On the other hand, he cannot survive the defection of the independents. In 2008, independent voters preferred Democrats by 8 percentage points. Now they prefer Republicans by 20 points, according to the latest New York Times/CBS News poll. Unless Obama wins back these moderate, suburban indies, there will be a Republican president in 2013.
Second, Obama needs to redefine his identity. Bill Clinton gave himself a New Democrat label. Obama has never categorized himself so clearly. This ambiguity was useful in 2008 when people could project whatever they wanted onto him. But it has been harmful since. Obama came to be defined by his emergency responses to the fiscal crisis — by the things he had to do, not by the things he wanted to do. Then he got defined as an orthodox, big government liberal who lacks deep roots in American culture.
Over the next two years, Obama will have to show that he is a traditionalist on social matters and a center-left pragmatist on political ones. Culturally, he will have to demonstrate that even though he comes from an unusual background, he is a fervent believer in the old-fashioned bourgeois virtues: order, self-discipline, punctuality and personal responsibility. Politically, he will have to demonstrate that he is data-driven — that even though he has more faith in government than most Americans, he will relentlessly oppose programs when the evidence shows they don’t work.
Third, Obama will need to respond to the nation’s fear of decline. The current sour mood is not just caused by high unemployment. It emerges from the fear that America’s best days are behind it. The public’s real anxiety is about values, not economics: the gnawing sense that Americans have become debt-addicted and self-indulgent; the sense that government undermines individual responsibility; the observation that people who work hard get shafted while people who play influence games get the gravy. Obama will have to propose policies that re-establish the link between effort and reward.
Fourth, Obama has to build an institutional structure to support a more moderate approach. Presidents come into office thinking that they will be able to go ahead and enact policies. Then they realize that they can only succeed if there is a vast phalanx of institutions laboring alongside them.
Liberals already have institutions. To be a center-left leader, Obama will have to mobilize independent institutions as well. These don’t exist in Washington, but they do around the nation. Civic organizations, local business groups and municipal leagues run from Orlando to Kansas City to Seattle. These groups are filled with local leaders who lobby for balanced budgets, infrastructure plans and other worthy causes. If Obama can mobilize these groups, he would not only build coalitions, but he would help heal the venomous rift between the White House and business, which is a cancer on his presidency.
Over the next few months, the Republicans will have their time in the sun. On Tuesday, I’ll offer some thoughts on how they can seize the moment. But if Obama is to rebound, he is going to have to suppress his natural competitive instincts. If he gets caught up in the Beltway fight club, the Republicans will emerge as the party of limited government and he’ll emerge as the spokesman for big government — surely a losing proposition.
Instead, he will have to go out and do his own thing. That means every day reinforcing the following narrative: the Republicans are only half right. They want to cut things; I want to cut but also replace things. They want to slash government; I want to restructure it. They want destruction; I want renovation.
Companies like Ford cut wasteful spending while doubling down on productive investment. That’s exactly what the nation has to do over all. There have to be cuts, the president could say, in unaffordable pension commitments, in biofuel subsidies and useless tax breaks. But there also have to be investments in things that will produce a vibrant economy for our children: a simpler tax system with lower rates on investment; more scientific research; a giant effort to improve Hispanic graduation rates; medical courts to rationalize the malpractice system and so on. Instead of being disjointed, as he has been, the president will have to reinforce this turnaround story day after day.
The problem is not that America lacks resources. The problem is that they are misallocated. If Obama can establish credibility as someone who can cut and replace, Election Day 2012 will be rosier for him than Election Day 2010.
It’s always a good idea to get the post mortem over before the death, don’t you think? Here’s Prof. Krugman:
Barring a huge upset, Republicans will take control of at least one house of Congress next week. How worried should we be by that prospect?
Not very, say some pundits. After all, the last time Republicans controlled Congress while a Democrat lived in the White House was the period from the beginning of 1995 to the end of 2000. And people remember that era as a good time, a time of rapid job creation and responsible budgets. Can we hope for a similar experience now?
No, we can’t. This is going to be terrible. In fact, future historians will probably look back at the 2010 election as a catastrophe for America, one that condemned the nation to years of political chaos and economic weakness.
Start with the politics.
In the late-1990s, Republicans and Democrats were able to work together on some issues. President Obama seems to believe that the same thing can happen again today. In a recent interview with National Journal, he sounded a conciliatory note, saying that Democrats need to have an “appropriate sense of humility,” and that he would “spend more time building consensus.” Good luck with that.
After all, that era of partial cooperation in the 1990s came only after Republicans had tried all-out confrontation, actually shutting down the federal government in an effort to force President Bill Clinton to give in to their demands for big cuts in Medicare.
Now, the government shutdown ended up hurting Republicans politically, and some observers seem to assume that memories of that experience will deter the G.O.P. from being too confrontational this time around. But the lesson current Republicans seem to have drawn from 1995 isn’t that they were too confrontational, it’s that they weren’t confrontational enough.
Another recent interview by National Journal, this one with Mitch McConnell, the Senate minority leader, has received a lot of attention thanks to a headline-grabbing quote: “The single most important thing we want to achieve is for President Obama to be a one-term president.”
If you read the full interview, what Mr. McConnell was saying was that, in 1995, Republicans erred by focusing too much on their policy agenda and not enough on destroying the president: “We suffered from some degree of hubris and acted as if the president was irrelevant and we would roll over him. By the summer of 1995, he was already on the way to being re-elected, and we were hanging on for our lives.” So this time around, he implied, they’ll stay focused on bringing down Mr. Obama.
True, Mr. McConnell did say that he might be willing to work with Mr. Obama in certain circumstances — namely, if he’s willing to do a “Clintonian back flip,” taking positions that would find more support among Republicans than in his own party. Of course, this would actually hurt Mr. Obama’s chances of re-election — but that’s the point.
We might add that should any Republicans in Congress find themselves considering the possibility of acting in a statesmanlike, bipartisan manner, they’ll surely reconsider after looking over their shoulder at the Tea Party-types, who will jump on them if they show any signs of being reasonable. The role of the Tea Party is one reason smart observers expect another government shutdown, probably as early as next spring.
Beyond the politics, the crucial difference between the 1990s and now is the state of the economy.
When Republicans took control of Congress in 1994, the U.S. economy had strong fundamentals. Household debt was much lower than it is today. Business investment was surging, in large part thanks to the new opportunities created by information technology — opportunities that were much broader than the follies of the dot-com bubble.
In this favorable environment, economic management was mainly a matter of putting the brakes on the boom, so as to keep the economy from overheating and head off potential inflation. And this was a job the Federal Reserve could do on its own by raising interest rates, without any help from Congress.
Today’s situation is completely different. The economy, weighed down by the debt that households ran up during the Bush-era bubble, is in dire straits; deflation, not inflation, is the clear and present danger. And it’s not at all clear that the Fed has the tools to head off this danger. Right now we very much need active policies on the part of the federal government to get us out of our economic trap.
But we won’t get those policies if Republicans control the House. In fact, if they get their way, we’ll get the worst of both worlds: They’ll refuse to do anything to boost the economy now, claiming to be worried about the deficit, while simultaneously increasing long-run deficits with irresponsible tax cuts — cuts they have already announced won’t have to be offset with spending cuts.
So if the elections go as expected next week, here’s my advice: Be afraid. Be very afraid.
