Economic Stimulus Bill: Sound Policy Vs. D.C. "Bipartisanship"

by: David Sirota

Tue Jan 27, 2009 at 15:30


I appeared on Rachel Maddow's MSNBC show last night at the top of the show to discuss the legislative wrangling over the economic recovery package - and why Democrats seem so interested not in passing the bill, but in attracting the majority of the Republican Party to support it. You can watch the clip here.

Rachel and I discussed a question that I asked a few weeks ago: When it comes to the economic recovery package, how much should taxpayers have to pay for political aesthetics? As I noted back then, the Obama administration concedes to reporters that it could pass an economic recovery package right now, without making any policy concessions to Republicans, such as substituting more tax cuts for more infrastructure spending. And yet, Obama and Democrats are doing just that - making concessions to Republicans in hopes that a majority of Republicans will support the final bill. And so again, how many billions of dollars in inefficient tax cuts must taxpayers be forced to finance in order to help Obama attract extra Republican votes that he doesn't actually need?

What's so bad about this question even being on the table is that since I wrote my original post, Republicans themselves have publicly acknowledged that Democrats do not have to make any concessions to them in order to pass the bill.  

David Sirota :: Economic Stimulus Bill: Sound Policy Vs. D.C. "Bipartisanship"
As the Boston Globe reports:

With diminished minorities in both chambers, Republicans are unlikely to find the votes to block the bill. In the House, there are enough Democrats to pass it without any additional support. In the Senate, Republicans could derail the bill, but only if united; two Republicans crossing over to support Obama would allow Democratic leaders to thwart a filibuster.

"Most of the Republican caucus has acquiesced to the political reality that the stimulus is going to happen," said strategist Phil Musser, who has advised Republicans in both the House and Senate. "The question is how much political support it's going to happen with."

"There's widespread consensus here," the Senate minority leader, Mitch McConnell, said Friday at the National Press Club. "Everybody believes that government action is necessary, and this is coming out of the mouth of somebody who doesn't normally advocate government action as the first resort."

So, let's review all the verifiable facts:

FACT: Economists on both the right and left agree that spending on infrastructure is a better guaranteed way to create jobs and stimulate GDP growth than enacting new tax cuts.

FACT: Top congressional Democrats acknowledge that spending on infrastructure is a far better way to stimulate the economy than tax cuts.

FACT: Even top Republican pollsters acknowledge that the public strongly supports prioritizing robust spending on infrastructure over more tax cuts.

FACT: The Obama administration acknowledges that it can effectively pass whatever economic recovery package it wants - including one that is robustly progressive in seriously prioritizing spending on infrastructure over tax cuts.

FACT: Senate Republicans and Republican Party strategists acknowledge the same thing that the Obama administration acknowledges: Namely, that Democrats have the political capital to pass almost anything they want.

FACT: Despite this reality, Obama has both pushed Congress to add conservatives' ineffective tax cut proposals to the recovery bill, and reduce funding for job-creating transportation infrastructure in order to fund new tax cuts.

FACT: House Republican leader John Boehner says House Republicans are opposed to the stimulus, unless it is loaded down with corporate tax cuts.

FACT: Next to George W. Bush himself, House Republican leader John Boehner is the single most irrelevant individual in American politics when it comes to this economic recovery package. Why? Because House rules do not permit a filibuster, and therefore the Democratic majority can pass whatever it wants in the House.

FACT: Despite John Boehner's stunning lack of any political power or relevance, both the media and top Democrats continue to act as if he has near-veto power over the economic recovery package. The Huffington Post notes that the Beltway media is breathlessly reporting on Boehner's every declaration, and - for some odd reason - President Obama is spending time meeting with Republican House members, trying to get them to support an economic recovery package.* Again, this is happening despite Boehner and House Republicans having absolutely no actual legislative power to shape the stimulus package.

OK, so knowing all of this, we get to the key question: Why do Democrats seem more interested in attracting majority Republican support they clearly do not need than in passing a bill that uses taxpayer money most effectively to stimulate the economy?

As I told Rachel, my guess is that it has something to do with Obama wanting Republicans to join him in politically owning the economy. That is, he likely believes that if most Republicans end up voting for the economic stimulus, that somehow means they won't criticize him when the economy continues to (inevitably) falter in 2009.

What this misunderstands, of course, is that Obama is not a senator anymore - and that means he can't dodge political hot potatoes like the economy. Whether he likes it or not - and whether Republicans vote en masse for the stimulus bill or not - he will soon be the one who politically owns the economy. Fair or unfair, that's just how it works in American politics - the president gets the credit and blame for the economy's success and failure.

Knowing that basic Political Science 101 reality, it seems to me that the smarter course of action is to make sure the economic recovery package is structured as effectively as possible to make sure every single dollar is best used to boost the economy. The better the recovery package is - the more direct spending it includes on proven job-creating programs - the more likely it will be to boost the economy, and thus, the more likely Obama will be to get credit for that economic success. Alternately, the worse the recovery package is - the more it is loaded down with ineffective tax cuts - the less likely it will be to boost the economy, and the more likely Obama will be to get the blame for that failure, whether Republicans voted for it or not.

This is the Republicans trap - and it is pretty smart political strategy. They get to advocate for policies that appease their base and satisfy their corporate donors. If they succeed in getting those policies amended into the stimulus bill, they will help sabotage the effectiveness of that bill and then have a perfect attack point with which to bludgeon Obama on the economy. If they fail in getting those policies amended into the stimulus bill, they will be able to say that's the reason the economy is not doing well in 2009. And one these outcomes are guaranteed, whether they vote for the bill or not.

What's not guaranteed is the effectiveness of the strategy - that's up to Democrats and Obama. If they fall for the trap and they continue watering down the bill with the very right-wing tax cuts that the public rejected during the 2008 election, they will make the GOP strategy look brilliant. But if they stop playing games with an opposition that just got drubbed in the election - and if they pass a robust spending plan without regard to how many extra GOP votes they get - they will at least hold out the possibility that the recovery package will ultimately boost the economy (and thus their political support), if not in 2009, then soon after.

The problem may be the deeper conflict between Obama's two key sets of campaign promises. On the one hand, he promised a huge agenda of new progressive spending. On the other hand, he promised bipartisanship. As we are seeing, those two goals create a fundamental conflict - not in the country at large, as polls show, but in Washington, D.C., where the term "bipartisanship" has little to do with true bipartisanship among the American public. The Republican Party in Washington - despite polls and the election mandate - simply will not agree to support the kind of robustly progressive spending that Obama campaigned on.

Thus, Obama has to choose between his campaign spending promises and his odes to bipartisanship - and unfortunately, it looks like he's trying not to make a choice at all. He's proposing a plan that tries to split the difference between GOP-backed tax cuts that Democrats acknowledge are ineffective, and progressive spending proposals. Policy-wise, the net effect is a weaker stimulus package than the moment requires. Politically, the effect is to help resuscitate a Republican Party and conservative movement that should be left to wither away. Indeed, the only way the GOP can claw itself back to political relevance is to garner attention from Obama and the Democrats - and sadly, it seems Obama seems intent on helping the GOP get back in the game.

As I told Rachel in concluding our interview, this situation is particularly sad from a historical perspective. If Franklin Roosevelt's main concern during the Great Depression was getting the majority of the Republican Party to support his proposals, we probably wouldn't have Social Security. Same thing for Lyndon Johnson during the 1960s - if he was primarily worried about getting GOP support for bills he signed, we probably wouldn't have the era's landmark civil rights laws nor Medicare.

I'm not saying that bipartisanship shouldn't be welcomed - but I am saying it shouldn't be the first and foremost goal.

Bipartisanship should come as a welcome - but, at this moment of wide Democratic majorities, legislatively irrelevant - product of good policy. It shouldn't be the other way around. Policy shouldn't be crafted first and foremost to garner Washington's faux bipartisanship, because at least one half of that bipartisan equation - congressional Republicans - aren't interested in representing any kind of public consensus. They are, in a sense, legislative terrorists, and as our government always tells us, you can't negotiate with terrorists. When you do, what happens is that good policy is sabotaged into mediocre or bad policy - all in pursuit of meaningless political aesthetics (And the good news is that at least some congressional Democrats get this and are pushing amendments that move the economic stimulus bill in a far more progressive direction).

Last I checked, nobody remembers by how many congressional votes our nation's greatest statutes passed into law. What we remember is the policy. To subvert that policy in pursuit of the image of bipartisanship and praise from the Beltway media is to waste this real but fleeting window of opportunity.

* UPDATE: Some good breaking news - word just off the newswires is that Obama told House Republicans he's not giving in to more tax cuts. That's great - although I still think Obama shouldn't be spending any of his time - and political capital - helping House Republicans seem even vaguely relevant.


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Great job (4.00 / 1)
Every time a Democrat goes on TV to support the stimulus, what is the first thing they tout? It's infrastructure, infrastructure, infrastructure, infrastructure.

They don't talk about tax cuts, health care, education. Because infrastructure is the one thing that Americans really want, and that even the GOP can't argue against. Infrastructure = jobs.

Yet when you look at the numbers, tax cuts get $275 billion while infrastructure only gets $85 billion. It is, as you say, ridiculous.

I've called all of my congressfolk today to encourage more infrastructure spending, particularly mass transit. The GOP's biggest nightmare would be real infrastructure spending by Dems, whereas their dream is lots of big business tax cuts that don't save the economy.


he values GOP buy-in/votes/cover more than our immediate needs -- that's the problem -- (4.00 / 2)
and the GOP all knows it.

he originally crafted it with them in mind to begin with -- not us.


Firmness in the right (4.00 / 2)
Mmm.... Obama's strategy may be as you describe it, to eliminate the possibility of further Republican obstructionism while we're waiting for positive signs that the stimulus plan is working, but like you, I can't help but think that such a strategy is founded on a fundamental misreading of recent history. Republicans are going to whine and pout and carp and screech and weep crocodile tears no matter what is offered them. Period. They're stupid, they're vicious, and they have no ideas of their own which haven't already been spectacularly discredited.

No matter where we are in two years, I very seriously doubt that there's even the slightest chance of a repeat of 1994. People understand the difficult nature of the task facing us, and the seriousness with which (we hope) the Democrats are confronting it. The Republicans don't have the votes now, and they won't have them in 2011. I say that Obama should forget about finessing an illusory congressional unity and just get on with what must be done.


Leopard's Don't Change Their Spots. (4.00 / 3)
The trap is already being set, as Digby reports here.  This attempt at "post-partisanship" will turn out to be a great folly.  

"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." - SCOTUS Justice Louis Brandeis

Well I disagree (4.00 / 2)
on one point here: I don't think most Republicans "know" that the tax cuts they propose are really less effective as a stimulus than infrastructure spending.

One of the intellectually interesting aspects of this crisis is how it seems to have driven many Conservative economists over the edge in terms of how they think the crisis should be dealt with. Look at Krugman's blog for some examples in which Conservative economists (Nobel Prize winners among them) try to argue that government spending can't relieve the problem because it only subtracts from private investment. Krugman points out that these arguments are seriously flawed, but I can certainly see how Republican lawmakers could in good faith accept those arguments as sound.

What I do think is true that they likely realize that they will have little if any input into the actual structure of the stimulus package, and are doing everything they can to put themselves in a position to capitalize on its potential failure, and to present that failure as vindication of their own ideology.

Given that the Republicans can spin anything as failure -- even Roosevelt's highly successful response to the Depression and the New Deal itself -- it's sobering to think about how this might all play out at the end. This is especially so since Obama has chosen a figure for the size of the stimulus package that seems, even by the account of his own economists, to be well off what would seem to be required. If that proves out, then it will be only too easy for Republicans to seize on bad numbers (even if they are not terribly long lasting) as a mark of abject failure in the stimulus. (Bear in mind that they manage to present Roosevelt's response to the Depression as a failure, even though for the vast majority of the time after Roosevelt's response was implemented, the numbers, in fact, improved dramatically).

I think that we mostly just have to hope that the economy really has a lot more resilience in it than many people think it does.  


So what? (4.00 / 3)
"What I do think is true that they likely realize that they will have little if any input into the actual structure of the stimulus package, and are doing everything they can to put themselves in a position to capitalize on its potential failure, and to present that failure as vindication of their own ideology."

Republicans are gonna do this in any case. Even if the Dems and Obama concede to their demands, they will always try to pin any "failure" on the administration.

And, what if it doesn't fail?

I'd rather see the GOPpers put on the spot by having to vote NO on the bill because the Democrats refuse to capitulate.  

"It sounds wrong...
     ...but its right."


[ Parent ]
A lot of words to confess ignorance (2.00 / 2)
Shorter Sirota:

I don't understand Obama's political tactics at all, so I am going to take everything I read at face value.


Exactly Mithras (1.00 / 4)
Sirota seems to think he's smarter then Obama. And notice how many times he uses I in his "look at me aren't I smart" post? With Sirota it's always me, me, me.  

[ Parent ]
I've never t/r'd anyone at OpenLeft (4.00 / 1)
But this kind of ad hominem attack is just reprehensible. If you've got a substantive argument, lets' have it. Otherwise STFU.

[ Parent ]
Same to you, buddy (0.00 / 0)
Whatever. Sirota is just a concern troll, and Chris is too nice a guy to grasp that he's given the keys to someone who is in it for himself.

[ Parent ]
Nothing better to do with his time (0.00 / 0)
Sirota even took time off from the chat show circuit to troll-rate your post. That's so awesome.

[ Parent ]
this is one of the fears (4.00 / 4)
many of us had about Obama during the primaries. He made it more than clear he was going to be a "uniter." For someone who had been in the Senate and saw first hand how Repubs operate, that he would still insist on working in good faith with them left one to conclude he really would listen to and honor their failed policies. His constant praise of Reagan should have been enough to warn anyone paying attention.

You were excellent on Maddow, David. Thank you!


totally -- and it's not at all what we want -- (4.00 / 3)
in a year when an inanimate carbon rod with a D next to it would have won, we got a very conservative "uniter, not a divider" who's "staying the course" with way way way too many GOP policies.

[ Parent ]
Sorry Hilary lost (0.00 / 0)
And have I stumbled into another Clinton Puma site? Is all of the negativity here just a case of sore losers whining?  

[ Parent ]
this is not about Clinton -- it's about issues and policies -- (4.00 / 1)
and about what Americans want -- and need.

[ Parent ]
What Obama should know (4.00 / 1)
During the primaries Obama opened up by praising Republicans and bipartisanship and slamming the left.  Either he was searching for his perfect Iowa con job or he drank the Kool Aid.  Time to find out ....

Obama should know a few things from basketball if he went beyond being a player.  The greatest coaches all know a few secret rules.  The star of the team is the team.  Failure to prepare is preparing for failure.  Keep your cool.  And, oh yes, teams win doing what they do well not by adapting and playing the opponents' game.

Red Auerbach and the Celtics played pressure defense and ran a fasrt break keyed by the outlet pass.  They did not copy Elgin Baylor (nobody at the time could) or Jerry West.  Phil Jackson played his triangle offense and depended on two players (Shaq and Kobe; Michael and Scottie PIppen).  John Wooden played pressure man-to-man defense, preached sharing the ball, and fed the ball inside through the center.  Wooden didn't often introduce new plays for big games and rarely even talked about who his team was playing.  Even Morgan Wooten at the high school level kept the same system as the players came, prospered, and moved on.

Obama's game has to move past the talk of bipartisanship (it is poison) and on to the realities of making the most of the Democratic team.  Even with Kareem, Bill Russell, and Michael Jordan the star of a winning team is still the team.


Do not know what to make of this. (0.00 / 0)
Is this significant? House Republicans attack Dems for lack of bipartisan zeal; Obama does not respond. Aren't the house Dems an overwhelming majority?

http://www.huffingtonpost.com/...


It's THE Trap. (0.00 / 0)
See my post at 16:27 above.

"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." - SCOTUS Justice Louis Brandeis

[ Parent ]
Obama to GOP -- "promised that his first budget would have "a realistic approach to eliminate debt, and bring down spending." " (4.00 / 1)
not good.

Obama worries US debt may shape legacy -- http://www.google.com/hostedne...

President Barack Obama told Republicans behind closed doors Tuesday that he worried about the soaring US debt because "I will be judged by the legacy I leave behind" on the economy, a source said.

Wooing lawmakers openly hostile to his stimulus plan, Obama also warned that the current recession was "different, deeper, and global," and that inaction could cause "irreparable" economic damage, said a Republican participant.

But "nobody is more worried about the deficit and the debt than me," he told Republicans who charge the 825-billion-dollar stimulus plan is far too large and packs far too little economic punch, the source told AFP.

"I will be judged by the legacy I have left behind. I don't want to leave our children with a legacy of debt. I am inheriting an annual yearly debt of over one trillion," the official quoted Obama as saying.

Obama, who had been pressed for assurances that the stimulus plan would not be an excuse to raise taxes or tolerate runaway spending, also promised that his first budget would have "a realistic approach to eliminate debt, and bring down spending." ...



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