Why Will It Be Any Different in 2009?

by: Matt Stoller

Sat Sep 20, 2008 at 11:32


It's fairly likely Obama will be the next President, and we should all help elect him or work to elect a new and more progressive Congress.  And there are good reasons to be optimistic about the direction of our country.  We do have something of a thicket to get through, and much of it starts with the attitude Democratic base voters have towards their leaders.

I was at a panel last week with Governor Corzine about paid family insurance, and there were a lot of bright people in the room discussing the tactical issues involved in passing legislation to allow someone to spend 6 weeks with their newborn.  And all I could think, while Wall Street was getting tens of billions, is how utterly small the conversation was.

Even obvious mainstream policy ideas get sabotaged, like the paid sick leave campaign to give workers seven days of paid sick leave every year in Ohio that Democratic Governor-Scumbag Strickland fought against.  Strickland decided that he would rather food service workers put snot on the food they serve than be allowed to take sick days.  This is an easy question, and he didn't just get it wrong, he fought to get it wrong.  And labor capitulated.

Matt Stoller :: Why Will It Be Any Different in 2009?
There is in fact a reason that lobbyists are more excited about an Obama administration when it comes to passing free trade bills.  The progressive space is used to fighting Republicans like McCain, but Democratic leaders know that they face no pressure at all from progressives should the Democrats bail out the irresponsible rich.

And so we get to Atrios and his diagnosis of the massive crisis, which Chris Dodd and Chuck Schumer are shepherding through:

This has been the problem all along, the pretense that all problems are just liquidity problems. Until another bank goes under. Then, well, they were bad, but for everyone else it's just a liquidity problem!

Again, the problem is that lots of bad loans were made, lots of people made highly leveraged investments in those bad loans, and still more people bet on those loans by insuring them. The loans are bad. The mortgages are not going to be repaid in full. Housing prices are not going to magically shoot up 50% over the next 6 months. People gambled and lost and now the Democrats are racing to bail them all out.

Dodd, despite a brief flirtation during the Presidential campaign with an interesting new form of politics, is basically your standard Democratic Senator with your standard crappy Hill staff.  And when a manufactured crisis comes to fruition, he hands over a trillion dollars without thinking about it.

Obama is no different; he hired Daschle's chief of staff Pete Grouse to run his Senate side immediately upon assuming office, and his policy ideas are built upon elite business interests, though instead of coal and telecom it's probably coal, Google, and telecom.  Take his science advisory council, which actually has scientists, though two out of five of them have heavy ties to biotech.  That's just the way the system is designed right now, to pull the plug on fights over social justice instantly while allowing for drag out conflicts over conservative policies, some of which we win and some of which we lose.  And occasionally there's a huge crisis and the mafia gets a trillion dollars without question.

The problem is ideological, it's about the way we do politics not the policies we pursue.  Progressives are as much a part of it as any other part of the Democratic-industrial complex, though people who read blogs a little less so because we're a little newer to political culture.  There are no forums to discuss ideological disagreement, much disagreement is couched in strategy talk, and the rest of it is organized around arcane policy discussions that don't matter because none of the policy will be implemented anyway.

The big question on our side - the war on terror, the war on drugs, the creeping police state, ending subsidized suburban society, the military industrial complex, global unfair trade, etc - are not even on the table.  We're talking about whether workers should have time off work if they are sick and celebrating laws that allow six weeks off after having a baby.  And our 'leaders' are giving away fantastic amounts of resources to irresponsible gamblers.

It's the way these decisions are made that are the problem, and the architecture of our political system swaps out elite decision-making roles between corrupt right-wing conservative elites and coastal socially liberal conservative elites.  It's why FISA and NAFTA were such big deals, and why the gang around Obama, where the most progressive of the bunch is Stiglitz and the rest are a bunch of Clinton and Bush neoliberals, suggests that the basic contours of political decision-making are only going to change in ways that move us sideways rather than forward.

There is reason for optimism, because we can now fight against the tide.  The tools we have - organized memory, a contextualized conversation without gatekeepers, and grouping capacity - are remarkably powerful.  It's a tide we're fighting, though, because Obama doesn't agree with us on the big things (like the war on terror).  Either you can accept his disagreement, as many of us do, and recognize that his Presidency won't be a betrayal of progressive values because he never had any to begin with, or you can keep the pretense that America can be turned around in one shot and have your good faith approach turned against you.  Or, as many of you will do, you can decide that it's too hard to hold to a progressive set of values, and decide that there is a war on terror, and that post-partisanship, whatever that means, is a good thing.

But ultimately taking the easy road, one in which you believe that Obama and his franchise of advisors agrees with you instead of recognizing that there is a wide gulf here, is a foolish path.  Many DC progressives have taken this road, and many progressives took this road in the primary.  It was always foolish, and it's always going to hurt the marginalized and the middle class, and it's going to empower the vicious conservative movement in this country.

We should be optimistic, because great things are possible, and great things are coming.  The work cut out for us is making sure that our side gets bigger while continuing to stop the policies of the conservative elites in the next administration, while making some marginal progress in building political coalitions.

The rules are stacked against the people right now, and if you don't believe me, go ask the Fed Chairman for a trillion dollars and see what he says.


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Reality Check (4.00 / 2)
It's good to have one every once in a while

have any ideas? (4.00 / 2)
Matt, I'm totally sympathetic to your concerns, but what exactly are you saying? Are you just railing against the system, or do you have any suggestions for what politicians should be doing right now?

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Good piece (0.00 / 0)
And self-evidently correct. But I don't understand this line:

it's about the way we do politics not the policies we pursue.

But it's about both, of course, as the rest of the piece shows.


To be fair (0.00 / 0)
The FED didn't really bailout AIG.  They just gave AIG enough liquidity to fail over the space of 6 months instead of 1 day.  And that was the goal.  

IE liquidity is the problem because they aren't liquid enough to go bankrupt suddenly without bankrupting an undefined amount of banks.

The idea isn't "too big to fail" its "too big to fail quickly".

The only problem is that the architects of that mess should recieve jailtime and everyone for the last 6 six years who was involved should pay a "broke the economy" tax.

Also telecoms and google are pretty much fundamentally opposed.  You can't be for both.  Heck google is even competing with coal lately with the solar initiatives.

That all being said your problem is not that Obama disagrees with you, but that the democratic party disagrees with you.  Obama says that we should renegotiate NAFTA and so does the democratic party.  

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I get it, you want a New New Deal (0.00 / 0)
We often forget the New Deal context of widespread and worsening global depression and uniquely low levels of business regulation and labor rights. I say "unique" because that market environment has not existed since and will likely never exist again. Much in the same way you can argue widespread slavery will never happen again and women won't lose the right to vote - the progressive orientation of history is aligned against such occurrences.

We will never face another moment like the pre-New Deal era because we will never find ourselves at a point where big business is as unrestricted as it was then and workers are as powerless. It was in that era and that era only that we were able to go from virtually no labor rights or business regulation to some labor rights and some regulation. Despite decades of New Deal reversals and 'reform', we will never find ourselves back at that historically unique 'square one'.

Going from nothing to something is a big deal and can happen quickly given the right catalyst, but going from something to something better is a slow and difficult process. If, as some left thinking commentators seem to assume, we had actually reverted back to a pre-New Deal environment of NO labor laws (no unions, children in coal mines, no minimum wage and so on) then maybe we would be primed for another revolution akin to the New Deal. But that is not the case, and history argues that it never will be.

I think it would be wise if we all stop waiting around for America to wake up and embrace a New New Deal. The catalyst for such a movement was used up by the first New Deal and things would have to get far, far, far worse for conditions to spur another revolution of similar size and scope.

In the meantime, fighting for mandatory paid sick leave seems like exactly the kind of thing people should be working towards. Here in San Francisco, we have universally available healthcare, mandatory paid sick leave and one of the nation's highest minimum wage. It didn't take a New New Deal to get this done - it took people working towards the exact kind of change that was being discussed on the panel you attended. More of THAT please.  

"Don't hate the media, become the media" -Jello Biafra


Obama is not going to be a progressive president (0.00 / 0)
He is going to sell us out on all kinds of domestic issues.

I am not even getting my hopes up for anything more than competent people in charge of government departments and competent, pro-choice corporate-friendly moderate judges (in the Breyer mold).

It's a lot better than what we'd get under any Republican, but we're not going to do great things toward universal health care or reducing carbon emissions or increasing family leave.

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i love this post (0.00 / 0)
I've been volunteering for Obama in North Las Vegas for the last week, and while I'm fully committed to getting him elected (duh), I'm under no illusions about some sort of progressive Renaissance come January. In fact, one of the most effective tactics I've found in persuading cynical fence-sitters is to basically concede that not much is gonna change either way, but at least Obama is a different kind of guy from a different party, and there's a CHANCE for some positive incremental change on health care and the economy, whereas McCain fully runs with the rich Bush crowd and is totally more of the same. Works a lot better than trying to sell pie-in-the-sky "Obama's gonna turn this country around" sentiments, from which many people (in NLV at least) instinctively recoil.

I look forward to an Obama presidency so we can really put pressure on him from the left. I feel more comfortable in that role than my current one, although volunteering has been very rewarding and I encourage everyone to give whatever time they have to their local campaign (or nearby swing state). We Californians will be doing a lot of driving to Vegas over the next month.


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