Showing posts with label Hillary Clinton. Show all posts
Showing posts with label Hillary Clinton. Show all posts

Saturday, October 20, 2012

The Alternative Reality



It's easy to be cynical in this presidential election year, the rhetoric and posturing of the scripted, agnotological "debates," the Super PAC ads, the robo-calls, the deluge of direct mail, sending out those sound bites to "the undecided."  But what would this election cycle be like if McCain had won in 2008?  Ironically, it would have been the Democrats finger pointing about the economy because we'd probably be in a similar situation, or worse, who knows -- it's impossible to prove an alternative reality, but we can speculate.

The debt Romney carps about was first ramped up by the Treasury Department of the previous administration, not by Obama, with the enactment of the Troubled Asset Relief Program (TARP) in 2008 to stabilize the financial system and it was quite necessary at the time.  Jobs were falling off the cliff before Obama took office. Our financial system was in melt down.  And what would have been a McCain administration response as that crisis just continued to deepen?  Go into an austerity spending mode?  Cut taxes?  No, that would have been impossible.  The time for government to reign in its spending is when the economy is NOT falling off the cliff and even a Republican administration would have had to take similar action (and the Federal Reserve's Ben Bernanke was an appointee of the Republican administration as well).

Reviewing some of the more distant past, Clinton enacted tax increases in 1994, mostly on high income earners. Eventually, those, as well as a booming economy (note, no loss of jobs due to raising taxes on the upper 1%), turned around President George Bush Sr.'s deficits into surpluses. After three consecutive years of national debt reduction under Clinton, the surplus in 2000 amounted to $230 billion. 

The first fiscal year impacted by George W. Bush's tax cuts was 2002 when the surplus swung to a $159 billion deficit, a $286 billion negative change from the previous year.  True, we were now embroiled in the war on terror, but the administration persisted on raising the stakes with tax cuts.  Bush said while campaigning for a local Alabama congressman. “In order to make sure that our economy grows, in order to make sure the job base is strong, you need to have a congressman who will join me in making sure that tax relief plan we passed is permanent and doesn’t go away.”  Where were the jobs after nine years of this "temporary" but massive tax cut, mostly benefiting the upper 1%?

When Paul O'Neill, Bush's Treasury Secretary, argued against a second round of tax cuts, VP Cheney purportedly said "You know, Paul, Reagan proved that deficits don't matter. We won the mid-term elections, this is our due."   This was Cheney speaking, not some liberal Democrat. O'Neill said in an interview "It was not just about not wanting the tax cut. It was about how to use the nation's resources to improve the condition of our society. And I thought the weight of working on Social Security and fundamental tax reform was a lot more important than a tax reduction."  For that view, O'Neill was eventually fired.

Obama clearly underestimated how long it would take to reverse years of deficit spending, not only his administration's (necessary as the private sector was not spending), but his predecessor's as well. (He also didn't anticipate being stonewalled by Congress.)   But if McCain had defeated Obama in 2008, he would have inherited the same mess and today we might have Hillary Clinton running against McCain (or Palin or Romney) making some of the same arguments about fiscal responsibility being spun by Romney. 

As I said, it is hard not to be cynical about this particular election, but I respect Paul O'Neill's admonishment:  "It was not just about not wanting the tax cut. It was about how to use the nation's resources to improve the condition of our society." That is why I support President Obama and hopefully in a second term he would have Congress' cooperation to achieve some fundamental tax reform and make inroads in controlling the growth of entitlements. 

And last night, as I was preparing to post this, a bit of serendipity led me to watch the 1957 classic A Face in the Crowd on Turner Classic Movies. Directed by Elia Kazan and written by Budd Schulberg, it depicts Larry Rhodes (Andy Griffith), a drifter who is found in a jail by Marcia Jeffries (Patricia Neal), who she enlists to sing and talk on a local Arkansas radio station, he ultimately rising to the pinnacle of media demagoguery.  He is nicknamed "Lonesome" Rhodes by Marcia, and she goes on the journey with him from obscurity to fame to fall.  

The relevancy of this film, made more than fifty years ago, to today is striking.  Lonesome is drawn into the political arena, and is brought in to help transform the film's Senator Worthington Fuller into a Presidential candidate.  Lonesome instinctively and sardonically understands the manipulative power of language and media. 

When he first meets the Senator, he advises him to abandon his stiff personality and give himself over to Lonesome's control:  "...Your problem is getting the voters to listen to you. Getting them to like you enough to listen to you. We've got to face it, politics have entered a new stage, television. Instead of long-winded debates, the people want slogans. 'Time for a change' 'The mess in Washington' 'More bang for a buck'. Punch-lines and glamour....We've got to find  a  million buyers for the product 'Worthington Fuller'....Respect? Did you ever hear of anyone buying any product beer, hair rinse, tissue, because they respect it? You've got to be loved, man. Loved....Senator, I'm a professional. I look at the image on that screen same as at a performer on my show. And I have to say...you'll never get over to my audience not to the millions of people who welcome me into their living rooms each week. And if I wouldn't buy him, do you realize what that means? If I wouldn't buy him, the people of this country aren't ready to buy him for that big job on Pennsylvania Avenue....I'm an influence, a wielder of opinion...a force. A force."

To Marcia he says :"This whole country's just like my flock of sheep!....Rednecks, crackers, hillbillies, hausfraus, shut-ins, pea-pickers - everybody that's got to jump when somebody else blows the whistle. They don't know it yet, but they're all gonna be 'Fighters for Fuller'. They're mine! I own 'em! They think like I do. Only they're even more stupid than I am, so I gotta think for 'em. Marcia, you just wait and see. I'm gonna be the power behind the president - and you'll be the power behind me."

An actor on Rhodes' show asks him about Senator Fuller: "You really sell that stiff as a man among men?" Lonesome Rhodes replies: "Those morons out there? Shucks, I could take chicken fertilizer and sell it to them as caviar. I could make them eat dog food and think it was steak. Sure, I got 'em like this... You know what the public's like? A cage of Guinea Pigs. Good Night you stupid idiots. Good Night, you miserable slobs. They're a lot of trained seals. I toss them a dead fish and they'll flap their flippers."

'Nuff said before next Monday's "debate" after which the "undecided" can flap their flippers.




Monday, November 21, 2011

Taking One for the Team

Ever since I heard that Hillary Clinton was planning to "retire" I've been thinking, what a waste of skill and experience. My thought was that Obama needs a new running mate, one that can handle the stalemated war of Republican and Democrat ideologues, and what better person than a former, and very effective, Secretary of State. Of course it means true sharing of power at the top, but Obama does not seem to be threatened by that, and as evidence he himself appointed his former rival to the position of Secretary of State.

Today the Wall Street Journal Op-Ed piece by Patrick H. Caddell and Douglas E. Schoen, both former Democratic pollsters, ups the ante with their article The Hillary Moment, which suggests Obama should actually step aside for the good of the Democratic party so Hillary Clinton can run for President, their argument being that Obama will not be able to run a positive campaign based on his [economic] record and even if he wins we will still be left with a highly charged partisan political landscape, something he will not be able to change. In effect, President Obama should take one for the team.

While I might agree with his difficulty in achieving bipartisan consensus (and that is why I thought Hillary would be the ideal running mate in 2012), I have a problem with ascribing every economic ill to Obama. It is impossible to prove an alternative reality, but if Hillary had run in 2008 and won, we would not be in a much different economic place. And if McCain won, we would have been as equally bad off, or worse ("you betcha" if you know what I mean). After all, the economic problems leading to today were long in the making: regulatory failures, ill conceived Federal Reserve actions, the housing bubble with the attendant rapacity of investment banking firms, Bush tax cuts, 9/11, and ill-chosen wars in Iraq and Afghanistan. When you live beyond your means for such a long time, it takes years to repair the balance sheet, especially when dealing with one the size of the United States'. It can't be done overnight and it can't even be done in one four-year Presidential term.

Making such repairs without doing further damage to the economy means compromise, spending cuts and tax increases, ones that do not further exacerbate the steadily growing division between the haves and the have nots, the one percenters and the ninety-nine percenters.

Expecting Obama to step aside is to concede an imaginary failure, undeserved and such a concession would only feed opposition blathering. And that is where you come in Hillary, perhaps you will consider taking one for the team by agreeing to become Obama's running mate in 2012.

I continue to have high hopes for the Obama presidency in a second term. Hillary, I still hear America singing.
PS: Barry Ritholtz's Presidential Blame & Credit, is well worth reading in conjunction with the above.
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