Sunday, November 7, 2010

The Weekend Link

Ezra Klein writes about the "Do-Lot" 111th Congress:

The votes are (mostly) counted. The Republicans have clearly and decisively won. But did the Democrats actually lose?

They lost the election, certainly. And many of them lost their jobs. But the point of legislating isn’t job security. It’s legislation. And on that count the members of the 111th Congress succeeded wildly, even historically.


Timothy Egan writes that Obama saved capitalism, and lost the mid-terms because of it:

For no matter your view of President Obama, he effectively saved capitalism. And for that, he paid a terrible political price.

Suppose you had $100,000 to invest on the day Barack Obama was inaugurated. Why bet on a liberal Democrat? Here’s why: the presidency of George W. Bush produced the worst stock market decline of any president in history. The net worth of American households collapsed as Bush slipped away. And if you needed a loan to buy a house or stay in business, private sector borrowing was dead when he handed over power.

Saturday, November 6, 2010

The Achievements of Governance

With the electorate ostensibly sending a message to President Obama and the Democratic Party in the 2010 mid-term elections, there is no shortage of punditry as to the reasons why voters turned their backs on the Democrats. Whether implicit or explicit, these pundits point to Democratic failures—failure to reduce unemployment more rapidly, failure to frame their agenda within a grand narrative that resonates, etc.


What has largely gone unnoticed—or at least underappreciated—is just how much this president and the Democratic congress achieved legislatively over the past two years. Healthcare reform, the stimulus, and financial regulatory reform, of course, have received all the headlines—and rightfully so—but there have been a myriad of progressive legislative achievements that have gone relatively unnoticed, without the fanfare, anger, faux outrage, and demagoguery of the healthcare debate.


Among others, these include:

-The Lilly Ledbetter Fair Pay Act, making it easier for workers to sue for pay discrimination based on gender.

-Tripling the size of the AmeriCorps public service program

-Hate Crimes legislation, making it federal crime to commit an assault based on sexual orientation.

-Student Loan reform, discontinuing a forty-five year program that provided federal subsides and guarantees to private student loan lenders, with the Department of Education now handling such loans directly without profit.

-New rules on credit card companies, banning sudden arbitrary interest rate hikes

-A stimulus package that provided investments in education, health care, a national electronic health records system, infrastructure, green energy, and more.

-Healthcare reform that will extend health insurance to over 95 percent of Americans and does much to begin the process of bending the cost curve

-Financial regulatory reform, which modernizes the regulatory apparatus and rules for the 21st century, while also creating an independent Financial Consumer Protection Agency


These are what Rachel Maddow calls “the underpinnings of the most legislatively productive 21 months in decades”…characterized as “policy, not politics”. It’s safe to say that the Democrats used their majorities to get stuff done, to govern, rather than politicking in anticipation of the next election. For that reason, it has been a two-year super majority well spent.



Mid-Term Post Mortem

I’m a little late to this but, hey; it’s been a busy week.


As expected, Republicans have won a sizeable majority in the House of Representatives and failed to win the Senate, despite making some gains there as well, resulting in divided government for at least the next two years.


Republicans were the big winners, but why? As I’ve pointed out several times in the past (here, here, and here), it’s sickening to think that the same folks that (a) were largely responsible for the structural weakening of the American economy and the germination of the financial crisis over the past decade; and (b) did everything in their power to block the Democrats’ economic recovery agenda over the past two years, have now been rewarded with large electoral gains. Now, obviously, the economy is still in rough shape, what with unemployment still hovering between 9 and 10 percent. But does anyone truly believe that the recovery would have been stronger and quicker under Republican governance?


Which brings us to those pundits who maintain, “if only Obama and the Democrats had spent more time ‘focusing’ on the economy, growth would be higher, unemployment lower, and Democrats would still have a Congressional majority”. Of course, as Paul Krugman points out, these people fail to specify what a greater “focus” on the economy would have consisted of. Would greater “focus” consist of a larger, more robust stimulus package? Or simply the president touring the country, repeating over and over, “We’re totally focused on the economy”? Of course, as it turns out, those who assert that the president hasn’t focused enough on jobs and the economy generally wanted a smaller stimulus package (or none at all) and have attempted to block (oftentimes successfully) all subsequent economic recovery legislation in the Senate, from extension of unemployment insurance to tax cuts for small businesses to aid for states and municipalities.


As Jacob Hacker and Paul Pierson have noted, we are essentially “giving the keys back to the folks who crashed the car.” Very disheartening, indeed.

Monday, October 25, 2010

The Economic and Political Consequences of an inadequate stimulus

Krugman:

What we do know is that the inadequacy of the stimulus has been a political catastrophe. Yes, things are better than they would have been without the American Recovery and Reinvestment Act: the unemployment rate would probably be close to 12 percent right now if the administration hadn’t passed its plan. But voters respond to facts, not counterfactuals, and the perception is that the administration’s policies have failed.

The tragedy here is that if voters do turn on Democrats, they will in effect be voting to make things even worse.

The resurgent Republicans have learned nothing from the economic crisis, except that doing everything they can to undermine Mr. Obama is a winning political strategy. Tax cuts and deregulation are still the alpha and omega of their economic vision.

Monday, October 18, 2010

Review of "Unequal Democracy"

My review of Larry Bartels' Unequal Democracy: The Political Economy of the New Gilded Age.

Sunday, October 17, 2010

The Effects of the Citizens United Ruling, phase I

Back in January, when Scott Brown was elected as the junior Senator from Massachusetts, Democrats were handed a defeat that would prove to be a giant thorn in their sides, as passing anything out of the Senate become much more complicated. The day after Brown's election, another event, however, was deemed--by myself and many others--as a much deeper long-term blow to Democratic electoral prospects: The Supreme Court's Citizens United ruling, which has opened a floodgate of undisclosed corporate-funded ads that attack Democratic candidates and support Republicans:

In 1907, direct corporate donations to candidates were legally barred in a campaign finance reform push by President Theodore Roosevelt. But that law and others — the foundation for many Watergate convictions — are all but obsolete. This is why many supporters of strict campaign finance laws are wringing their hands.

Certainly, it is still illegal for corporations to contribute directly to candidates. But they now have equally potent ways to exert their influence. This election year is the first since the Supreme Court’s Citizens United decision, which allows corporations for the first time to finance ads that directly support or oppose political candidates. And tax laws and loopholes have permitted a shadow campaign network of Republican-leaning nonprofit groups to collect a flood of anonymous donations and spend it widely.

If the Republicans make big gains in the House and Senate on Election Day, there is rare bipartisan consensus that they will owe part of their victory to the millions of dollars raised and spent by these nonprofit groups, much of which has come from businesses.

The groups, including the Chamber of Commerce, the American Action Network and Crossroads GPS, which is linked to the Republican strategist Karl Rove, have committed to spending well over $150 million this year. President Obama has railed against these groups as they have poured money into races in which once-secure Democrats are hanging by a thread.

Tea and Crumpets

Three excellent articles--each with a slightly different angle--on the phenomenon known as the Tea Party Movement:

Kevin Drum, writing for Mother Jones: Tea Party: Old Whine in New Bottles

Matt Taibbi, writing for Rolling Stone magazine: How Corporate Interests and Republican Insiders built the Tea Party

Mark Lilla, writing for The New York Review of Books: The Tea Party Jacobins

Libertarianism

Wednesday, September 29, 2010

The Tea Kettle Movement

I don't always agree with Tom Friedman, but I think he asks an important question in his latest column:
And how can you take seriously a movement that sat largely silent while the Bush administration launched two wars and a new entitlement, Medicare prescription drugs — while cutting taxes — but is now, suddenly, mad as hell about the deficit and won’t take it anymore from President Obama? Say what? Where were you folks for eight years?

Monday, September 20, 2010

Life is so painful for the very rich

Krugman:

You see, the rich are different from you and me: they have more influence. It’s partly a matter of campaign contributions, but it’s also a matter of social pressure, since politicians spend a lot of time hanging out with the wealthy. So when the rich face the prospect of paying an extra 3 or 4 percent of their income in taxes, politicians feel their pain — feel it much more acutely, it’s clear, than they feel the pain of families who are losing their jobs, their houses, and their hopes.

And when the tax fight is over, one way or another, you can be sure that the people currently defending the incomes of the elite will go back to demanding cuts in Social Security and aid to the unemployed. America must make hard choices, they’ll say; we all have to be willing to make sacrifices.

But when they say “we,” they mean “you.” Sacrifice is for the little people.

Thursday, September 9, 2010

Economic Commentary via Paul Krugman and Martin Wolf:

Krugman:
Reiterates why the 2009 stimulus was not sufficient enough
Warns against repeating the same mistakes of 1938
Blasts the mere thought of extending the Bush-era tax cuts

Wolf:
On the political genius of supply-side economics
Obama was too cautious in fearful times:
So what is going to happen? I assume that, after the midterm elections, resurgent Republicans will offer new tax cuts and ignore the fiscal deficits. They will pretend that this has nothing to do with any reviled stimulus, though it is much the same thing – increasing fiscal deficits, thereby offsetting private frugality. That would put the administration on the spot. It would have to choose between vetoing the tax cuts and accepting them, so allowing the Republicans to get the credit for their “yacht and mansion-led” recovery. Any recovery is better than none. But it could have been much better than this. Those who were cautious when they should have been bold will pay a big price.

Graph of the day:

Via Ezra Klein:

Monday, September 6, 2010

What He Said

Paul Krugman:
I had hoped that we would do better this time. But it turns out that politicians and economists alike have spent decades unlearning the lessons of the 1930s, and are determined to repeat all the old mistakes. And it’s slightly sickening to realize that the big winners in the midterm elections are likely to be the very people who first got us into this mess, then did everything in their power to block action to get us out.

Tuesday, August 3, 2010

The Tragedy of Democracy

As my previous post attempted to demonstrate, the Republicans, as the minority party, have been wildly successful in blocking--or at least delaying and weakening--Democratic efforts for economic recovery. This is a tragedy in itself, since millions of Americans are suffering every day. But this is also a tragedy of democracy. Democratic theory will have you believe that political actors/parties are competing within a more or less even electoral marketplace. The actions of said political actors and parties are understood by voters and are judged accordingly, namely with electoral reward or punishment. Outcomes are judged by their perceived causal origins.

But in this situation, Republican actions are highly shielded from clear public view--similar to a market externality in the language of economics--while Democrats--as the party in power--are judged by the ultimate outcomes of their policies. Largely hidden from those outcomes are the tools, procedures, and methods used by the minority party to prevent the majority party's intended outcomes. Instead, there are undemocratic forces at play--particularly within the Senate--and imperfect information available to the voting public. The role played by the Republicans' strategy of obstruction barely enters the electoral equation. That is the tragedy.

***
UPDATE: I missed this earlier, but Matt Yglesias makes some similar points in this piece describing how the routine use of the filibuster is undermining democratic accountability.

Economic Sabatoge: The Republican Strategy for Electoral Victory

1.Water down the stimulus package so that it is less than half of what is needed, based on the economy's output gap and unemployment projections, with a larger than ideal percentage of the total package consisting of tax cuts, which are, dollar-for-dollar, less effective than direct spending. (In the end, the total package was for $775 billion, 40% of which was in the form of tax cuts. This with an estimated production gap of over $2 trillion.)
2. As the economy continues to sputter, in no small part due to the inadequacy of said stimulus, begin attacking the administration and democrats for poor economic performance, blaming the economy's woes on the stimulus itself.
3. Continue, throughout 2009 and 2010, to filibuster, delay, and block the extension of unemployment benefits, aid to states and municipalities, and any further stimulus--including a jobs bill consisting solely of tax cuts for small businesses!
4. While Democrats and Obama work out details of health care reform and other domestic legislation in 2009 and early 2010, complain that Obama/Dems should be paying more attention to the economy.
5. Summer of 2010, continue to block unemployment extension and aid to states/municipalities. The more who suffer, the better! The general public senses a worsening economic environment, characterized by staggering unemployment and low growth. Republicans are aware that the general voting public doesn't have time to pay attention to the arcane procedural workings of the United States Senate and isn't going to recognize the role of Republican intransigence--via the fillibuster and other procedural maneuvers--in the economy's worsening condition. After all, the Democrats are the party in power! And that's the ingenius of it all! The Republicans, using arcane congressional procedural rules, are allowed to sabatoge the Dermocrats' recovery efforts while, in the eyes of the avergae voter, come out with little or no blood on their hands.
6. And, all the while, pump up the rhetoric about the deficit, debt, and inflation.

This was the Republican strategy from the start, folks, and we're about to reward this party by handing over control of the House and possibly the Senate in November?

Now, elections are won and lost on a converging mass of issues, personalities, and momentary circumstances. But the number one indicator of electoral success is the state of the economy. Republicans were wise in devising and adhering to a strategy of economic sabotage--their party will certainly benefit this November and perhaps beyond. But at what expense to the economy and to the lives of millions of Americans?

Monday, July 5, 2010

California Blogging

Here are some pictures of our trip to San Francisco and Napa Valley:






Thursday, March 25, 2010

The Politics of Health Care Reform

In the wake of health care reform's successful passage into law by Congress and President Obama, a lot of attention is being focused on how this all plays out in November and beyond.

What I think will become increasingly clear over the next several months (and years) is that the sky is not falling, Armageddon is not just around the corner. This health care reform law is not a government takeover of America's health care. It's not some Bolshevik plot. In fact, it leaves the decentralized, private health care system largely in tact, merely reforming it around the edges. Most Americans will either benefit immensely from this bill or experience no change at all--at least for the first several years.

Jonathan Chait points out that the health care bill that was signed into law by President Obama is a very moderate, even centrist Republican, bill. It closely resembles the reforms Mitt Romney signed into law in Massachusetts in 2006, as well as the Republican alternatives to "Clintoncare" in 1993. At its core, the bill relies on the existing private system that's in place, only marginally increasing the number of people who get their health insurance from a government program.

Already we are beginning to see a shift in public perceptions of the bill. A new Gallup poll shows that more people now support the passage of the reform bill (49%) than oppose it (42%). This is largely due to the following:
(1) Liberals who were reluctant to support the bill previously--due to its aforementioned centrism--have now come on board. These "opponents" of the bill were generically counted in the "oppose" column of public opinion surveys, even though said opposition was because they didn't think the bill went far enough. These folks have now gotten behind the largest expansion of the social safety net since Medicare, despite its perceived inadequacies.
(2) Success breeds support. Through the often rough legislative slog, the public became disillusioned in the process and the rhetoric. That part is now over, and in its place is a pretty good bill.
(3) We now have a definitive bill with definitive reforms. As the public's understanding of what's actually in the bill increases, support has increased. And I expect even more of increased support in the weeks and months and years ahead. People will realize that, contra Republican rhetoric, the sky is not falling. Before the Democrats had a single, actual bill, politicians and pundits and advocates had a difficult time defending the legislation against some of the more outlandish criticisms. That now changes.

And what about the 2012 Presidential election? Many viewed Mitt Romney as a favorite to win the Republican nomination and possibly challenge Obama for the presidency. In many ways, as Matt Yglesias points out, that ship has sailed. This plan so closely mirrors Romney's 2006 Massachusetts plan that it will be nearly impossible for Romney to justify his past embrace of health care reform to the far-right of his party.

Inside Health Care Reform


We've all heard the shouting, the anger, and the misrepresentations. But, in reality, what exactly will this bill do? What's in it? And how will it affect you?

How much will health care reform cost?

Many of the provisions in the bill don't go into effect immediately. Here are the provisions that go into effect within the first year.

What does the bill do to control health care costs? Here are the five most promising cost controls in the bill.

The health care bill is projected to insure 95% of all Americans by 2019. Who will be left uninsured?

The health insurance "exchanges" are a major aspect of this bill. What's their role and how will they work?

Did the health care reform process lack sufficient transparency?

What does the bill do for prevention?

Want to know how your family will be directly impacted by health care reform? Here's an easy to use calculator.

UPDATE: How does the individual mandate work?

Wednesday, March 24, 2010

A Victory for Freedom


Health care reform is now the law of the land. It is an historical achievement that builds upon the progress of Social Security and Medicare in protecting all citizens against financial and physical uncertainty and risk. It continues in the long line of progressive reform that runs through the New Deal and the Great Society.

Make no mistake about it: This legislation is a victory for freedom--what FDR called freedom from want and freedom from fear. No longer is health care security dependent on employment, or income, or a person's ability to avoid bad luck.

Health care has always been a human, personal issue. It is also a societal issue. The growing plight of an increasing segment of American society cannot be--and with this bill, will not be--disconnected from the health of society as a whole. With passage of health care reform, American society has become a bit more humane, a bit fairer, and a bit more supporting in the face of unexpected, unplanned physical calamity. With health care reform, we've taken a large step in ensuring that our individual medical risks are collectively pooled.

And emerging from this arrangement is an increased sense of human freedom--a freedom that will not be stifled by crushing, unexpected medical costs or bankruptcy.

Saturday, March 13, 2010

The Weekend Link

The health care polling memo all Democrats are currently reading.

Jon Cohn on why health care cost control is so difficult, both politically and practically.

Ezra Klein debunks ever more conservative myths about health care reform.

The Democrats' health care proposals have come under fierce fire from conservatives and, to some degree, the public at large. But what, exactly, would a Republican health care plan look like?

Republican congressman Paul Ryan's budget proposal provides us with a chilling preview of Republican budgetary goals, should they regain power.

And here's a paper from the Center for American Progress comparing public spending levels and priorities among OECD countries.

Friday, February 26, 2010

(The Return of) The Weekend Link

In the wake of yesterday's big televised health care summit, we've got lots of commentary on the state of reform:

According to Paul Krugman, Republicans never once offered a viable solution to the health care crisis, despite a 7-plus hour discussion.

Ezra Klein and Jonathan Cohn both (separately) argue that the one thing the summit clearly demonstrated is that compromising on this issue is not an option for Republicans.

Ezra Klein tackles some of the Republicans' talking points during the summit: (1) America has the best health care in the world, therefore reform is unnecessary and dangerous; (2) Allowing insurance companies to sell insurance across state lines will bring costs down by offering greater competition and consumer choice; Washington should not decide what health insurance is and isn't; and the claim that, if reform passes, health insurance premiums will increase.

And, finally, Damon Linker on how conservatives claim a monopoly on American identity.

Monday, February 22, 2010

The Stimulus Worked (and is working)

David Leonhardt of the NY Times:
Imagine if, one year ago, Congress had passed a stimulus bill that really worked.

Let’s say this bill had started spending money within a matter of weeks and had rapidly helped the economy. Let’s also imagine it was large enough to have had a huge impact on jobs — employing something like two million people who would otherwise be unemployed right now.

If that had happened, what would the economy look like today?

Well, it would look almost exactly as it does now. Because those nice descriptions of the stimulus that I just gave aren’t hypothetical. They are descriptions of the actual bill.

Just look at the outside evaluations of the stimulus. Perhaps the best-known economic research firms are IHS Global Insight, Macroeconomic Advisers and Moody’s Economy.com. They all estimate that the bill has added 1.6 million to 1.8 million jobs so far and that its ultimate impact will be roughly 2.5 million jobs. The Congressional Budget Office, an independent agency, considers these estimates to be conservative.

Now, I would still argue that, given the magnitude of the economic situation, an even larger stimulus was (and is) needed. But to say that the stimulus has had no positive impact (or a negative impact) is simply false.

Here are some additional thoughts from Ezra Klein.

Krugman on "Starving the Beast"

Since the late 1970s, conservatives have sought to shrink the size of government through a strategy of "starving the beast", which consists of reducing government revenue streams (i.e. instituting major tax cuts) while simultaneously allowing spending to go unchanged. Over time, growing government deficits will force the termination of social welfare programs such as Social Security, Medicare, Medicaid, and the like. Paul Krugman has a good take on this strategy and calls the Republican's bluff.

Thursday, February 18, 2010

HCR deal making perspective

Jonathan Cohn puts the deal making within the health care reform legislative process within context and offers much needed perspective.

Friday, February 12, 2010

Medicare hypocrisy

As I've noted elsewhere, the Republican hypocrisy concerning Medicare cuts within the context of the health care reform debate has been staggering. Republicans have sought to kill Medicare since its inception, proposed massive cuts in the 1990s, and, in their recently released "shadow" budget, have outlined, not only massive cuts, but the program's ultimate termination. Such hypocrisy would be comical if it didn't play a major role in significantly altering the health care debate over the past year, scaring seniors into believing reform would cut their Medicare and introduce "death panels" to keep costs down. The Democratic plans do propose cuts in Medicare spending, but the cuts are targeted at wasteful spending, totaling approximately $400 billion over the next decade. In his column today, Paul Krugman takes on the hypocrisy.

Also, this graph, via Krugman:

Thursday, February 11, 2010

Twitter

I've finally taken the plunge: I'm now tweeting on Twitter. I can be "followed" on Twitter by clicking here. Also, I have an updated Twitter feed on the right-hand side of this blog's homepage, just below my Profile --->

Wedge Issues

With the 2010 midterms approaching, it's time for Democrats to clearly differentiate themselves from the faux populist Republicans. I've identified several key wedge issues the Democrats would be smart to utilize in painting themselves, as opposed to the Republicans, as the true defenders of the people's welfare:

1. Financial regulatory Reform. I've noted in prior posts how the Republicans plan to block the creation of a Consumer Credit Protection Agency, which would essentially protect consumers from unfair and excessive credit card and mortgage fees, arbitrary interest hikes, and the like. The Republicans will be opposing such a new agency--in any form--as well as opposing financial regulatory reform in general. How will voters react to the party defending the interests of big banks and hedge funds?

2. Bank Fees. The Obama Administration unveiled a plan to recoup the remaining unreturned TARP bank bailout funds by instituting a fee on the largest banks that participated in the program. Obama outlined this plan during the State of the Union and was greeted with no--I repeat no--Republican applause. As the Republicans sat on their hands, a populist opening suddenly appeared for Democrats.

3. The Republican's "shadow" budget. Last week, Representative Paul Ryan (R-WI) unveiled a Republican budget proposal--essentially what the federal budget proposal would resemble if the Republicans were in power. The offering of a shadow budget is routine in parliamentary systems, such as Britain, but typically useless in the American system. But what may be useless for actual governance is a coup for Democrats. Ryan's budget includes draconian cuts in Social Security and Medicare--eventually privatizing those programs altogether--as well as other cuts to federal social programs and regulatory agencies. The plan also cuts taxes on the wealthiest Americans, further reducing the tax burden for the most well-off.

As has been suggested elsewhere, Democrats should force a vote on Ryan's most controversial budget proposals, primarily cutting Social Security. And it looks as if the Democrats might do just that. During the ongoing health care debate, Republicans effectively scared seniors into believing that major cuts to Medicare were on the way--including the creation of government "death panels." As I've noted elsewhere, despite the patently falseness of these claims, the narrative was irreversibly altered throughout the summer and fall. Now it's time for Democrats to call Republicans out on their bluff. After all, it was Republicans who fought for Medicare cuts in the 1990s and attempted to privatize Social Security--unsuccessfully due to united Democrat opposition--in 2005. Call their bluff.

4. Citizen's United Supreme Court decision. As I've noted in a previous post, this could be a major wedge issue for Democrats, if utilized. Read more here.

5. Senate procedural rules. The extent to which the filibuster has been used and politicized in the 110th Congress is unprecedented. (See here and here). A small, disciplined, minority has been able to significantly slow legislation, block executive nominees, and effectively require a 60 vote super majority on all major legislation. If Senate procedural rules were better understood by the public at large, this would be politically bad for Republicans. The problem is, the vast majority of people have very little knowledge of what the filibuster is and even how many votes are required to break a filibuster. And who can blame them! But because of the lack of public understanding of the procedure, Republicans have been able to use the filibuster as an effective minority political tool to not only prevent the majority from governing, but also to paint the Democrats as ineffective legislators. The end result is twofold: (1) the outcome of the prior two national elections--2006 and 2008--where Democrats won large majorities in both houses of Congress and the Presidency, were rendered near moot; (2) the public grows impatient with Democratic ineffectiveness and votes the incumbents out of office.

This strategy has been working very well for Republicans. They are allowed to effectively block most legislation without having to commit anything but vague talking points as an alternative. Democrats, in response, should work to reform the filibuster--either eliminating it outright or reducing the number of votes needed to break a filibuster. They should also require Republicans to literally stand on the Senate floor and filibuster. The idea of the filibuster in the public mind is that of an act of contrition: which side has the most endurance to continuously debate the issue on the Senate floor, on live C-SPAN. The filibuster, however, has evolved into a tool the minority uses to force a cloture vote--requiring a 60 vote majority--on nearly every piece of legislation and executive nominee. No one actually filibusters in the traditional, intended, sense!

6. Association with extreme Tea Party movement. And finally, the so-called Tea Party movement that has engulfed the GOP is a widely popular movement among right-wingers, but is hardly a symbol of moderation, progress, and tolerance to the mainstream observer. Democrats should tie the official Republican Party to the Tea Partiers in the public mind. Of course, the Republicans may do this on their own as the need for Tea Party approval becomes crucial for primary races.

..

Positioning themselves as the defenders of working and middle-class interests, while effectively differentiating themselves from the Republicans, will be an important political goal for Democrats this year. In addition to the above "wedge" issues, Democrats must also successfully pass comprehensive health care reform, as not passing reform will be political suicide, as I have mentioned in the past and as recent polling shows is still very popular.

Tuesday, February 9, 2010

Contending Notions of Liberty

Over the course of the ongoing health care reform debate the right has put forward a barrage of disingenuous, cynical, and hypocritical arguments against reform--not to mention the utter falsehoods disseminated by reform opponents. Republicans oppose reform because, they say, it will increase the size and reach of government, including government spending and taxes--yet the bill will actually improve the budgetary position of the federal government over the next decade and beyond, and is, in fact, a requisite to addressing long-term budgetary challenges.

This argument also flies in the face of the Republican's own 2003 Medicare Part D policy, which is in reality one of the largest expansions of government domestic spending in decades without offsetting spending cuts or revenue increases.

Then there's the Republican's hypocrisy when it comes to Medicare cuts. One of the more effective Republican talking points against reform has been that seniors will experience drastic cuts in their Medicare. Without delving into how patently false this is, such arguments are both hypocritical and highly cynical, coming from the party whose raison de etre has been to outright eliminate social programs, primarily Medicare and Social Security, since their inception. This is coming from the party that fought tooth and nail to block Medicare's passage in the 1960s and fought throughout the 1990s for drastic cuts.

And finally we have the outright falsehoods, such as "death panels" and insurance for illegal immigrants. Misrepresentations that alter the nature of debate, often forcing proponents (of the policy) onto the defensive, while significantly altering the narrative.

But there are those who will engage in an honest, open debate regarding the policy, and will even concede that the health care reform legislation--taken as a whole--will likely succeed in accomplishing what it sets out to do: (near)universal coverage, insurance reform, cost containment, etc. These folks, however, remain adamantly opposed to the legislation. Why? They see health insurance reform--and essentially any other government attempt at "correcting" or "addressing" social challenges--as misguided and as an infringement on individual liberty. According to this view, government intervention is "not the American way" and is in opposition to America's founding principles.

Once "liberty" has been invoked we've left the realm of policy and we've entered a philosophical debate, one that is much less receptive to facts, statistics, models, and policy arguments--however persuasive. (The same can be said when religious belief is invoked).

And who would want to be on the wrong side of liberty, however vaguely defined?Ah, but there's the rub: this is but one aspect of liberty, one part of a larger whole. A more complete conception of liberty puts an emphasis on balancing sometimes contending priorities: liberty as "freedom of" and liberty as "freedom from."

When conservatives invoke "liberty" when opposing government involvement in the economy or health care, they are thinking of liberty in its "freedom of" form. These are the types of liberties encapsulated in the The Bill of Rights: freedom of speech, freedom of religion, etc., and are usually thought of as the individual's liberty from government encroachment.

But this is a narrow--and in many ways antiquated--view of liberty. The types of liberties provided under the American Bill of Rights and other like documents are still very much essential today as they were over two hundred years ago. But these liberties do not take into account the ways in which the modern world--with its capitalist superstructure--can impinge on the human spirit, human worth, and human welfare. Forces out of the control of any one individual--a volatile market economy, unforeseen medical illness, a major financial crisis--can lead to outcomes that put the individual's very well-being in jeopardy. That's why liberty construed as "freedom from" cannot be dismissed and wholly trumped by "freedom of."

In an excellent essay in The New Republic, William Galston attempts to differentiate between these two types of freedoms, particularly in the context of health care reform. I recommend reading the entire essay, but here are some key passages:

The deeper question concerns not public sentiment, but, rather, the basis on which government may legitimately act under the Constitution. In 1933, FDR argued that that only the powers of government could be adequate to the exigencies of the moment. If so, he said, it could not be the case that our Constitution had disabled us from meeting a grave threat to the general welfare, and potentially to constitutional government itself. He won that argument: We live today in the legacy of his victory, and (I say this at the risk of sounding “progressive”), we’re not going back.

The alternative formulation of the dispute--Mansfield’s, I think--is that the issue isn’t the relation of means and ends, but rather the right of government to act in certain ways. If government doesn’t have the right, then considerations of efficacy are irrelevant. Even if government could bring about a good result by acting ultra vires, doing so would be an invasion of liberty, which is the most fundamental good. Rather than invade liberty, we should be prepared to live with the consequences of government forbearance. (I note for the record that if Abraham Lincoln had accepted this view, we’d probably be presenting passports at the Virginia/Maryland border.)

...

At the heart of the conservative misunderstanding of liberty is the presumption that government and individual freedom are fundamentally at odds. At the heart of any liberal understanding of freedom is the proposition that public power can advance freedom as well as undermine it.

In the real world, there is no such thing as freedom in the abstract. There are only specific freedoms, which differ in their conditions and consequences. FDR famously enumerated four such freedoms, dividing them into two pairs: freedom of speech and worship; freedom from want and fear. The first pair had long been recognized and enshrined in the Constitution. The second were a new formulation, and Roosevelt made them concrete when he signed Social Security into law, justifying it as a way of promoting freedom from want: "We have tried to frame a law which will give some measure of protection to the average citizen and to his family ... against poverty-ridden old age." Three years later, he declared that Social Security payments will "furnish that minimum necessary to keep a foothold; and that is the kind of protection Americans want."

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The other face of freedom--"freedom from"--points toward circumstances that (it is presumed) we all wish to avoid. In such instances, the task of government is, so far as possible, to immunize individuals against undesired circumstances. Here, government acts to protect not individual agency and choice, but rather an individual's life circumstances against outcomes that no one would choose, or willingly endure.

I'm afraid that unless the divide can be bridged between these two conceptions of liberty, conservatives will be unable to accept a role for government in advancing human and societal welfare. The challenges we face as a society in the 21st century render this philosophical resistance extremely unfortunate. Many of the challenges and obstacles we face--financial sector volatility, global climate change and other eco-environmental challenges, health care cost inflation and inequity--require effective, knowledge based governance that promotes and protects the public good.

Friday, February 5, 2010

Krugman and Klein on Budget Deficits

As a follow-up to my post on budget deficits, here's Paul Krugman's take on the deficit:
Let’s talk for a moment about budget reality. Contrary to what you often hear, the large deficit the federal government is running right now isn’t the result of runaway spending growth. Instead, well more than half of the deficit was caused by the ongoing economic crisis, which has led to a plunge in tax receipts, required federal bailouts of financial institutions, and been met — appropriately — with temporary measures to stimulate growth and support employment.

The point is that running big deficits in the face of the worst economic slump since the 1930s is actually the right thing to do. If anything, deficits should be bigger than they are because the government should be doing more than it is to create jobs.

And here's Ezra Klein:

Deficit fear-mongering was a core part of the Democrats' strategy against Bush, too. It just didn't work very well. The reason is that the public didn't care very much about deficits. Why? Well, they weren't very worried about the economy. But now they're terrified about the economy. And deficits -- which signify irresponsible money management to voters who think of things in terms of household finances rather than Keynesian counter-cyclical spending -- are evidence, to them, that the government isn't handling the economy correctly. The fact that deficits rise sharply during recessions simply confirms to voters that there's a connection.

Republicans are taking advantage of this misguided analysis, just as Democrats would happily have latched onto the sentiment if it had presented itself in the Bush years. But the driver here isn't Republican messaging but, on the one hand, anger over the economy, and on the other hand, the fact that the troubled economy needed a vast expansion in the short-term deficit. A bad economy isn't popular and big deficits aren't popular, and combining the two is seriously unpopular, even if it's necessary.

Tuesday, February 2, 2010

Budgets, Deficits, and Hypocrites

The Obama Administration unveiled its FY2011 budget proposal on Monday. It clocks in at a record $3.8 trillion in expenditures, with a record $1.6 trillion deficit.

The Obama Administration has a difficult hand to play. In similar ways, the Clinton Administration took office in 1993 amidst (what were then) record peacetime deficits, largely caused by profligate defense spending and extravagant tax cuts for the wealthiest Americans during the Reagan and Bush I years. The ambitious domestic agenda that Clinton campaigned on was largely curtailed as the Administration chose to pursue a strategy of deficit reductions. That strategy ultimately resulted in a budgetary surplus of over $200 billion by the end of Clinton's 2nd term.

But the subsequent surpluses that were projected into the near and mid-term future never materialized as the incoming Bush II Administration pursued a series of policies that turned a sizable surplus into persistent and record deficits. Arguably the Clinton administration's largest economic achievement--turning record deficits into surpluses--was all for naught. The Republicans passed massive tax cuts--mostly for the wealthiest Americans--in 2001 and then again in 2003 (for good measure); engaged in two foreign wars, as well as the so-called war on terror, with borrowed funds; and passed a Medicare prescription drug program that locked in high rates, significantly benefiting the pharmaceutical industry. Before Obama set foot in the White House in 2009, much of projected deficits for the foreseeable future were locked in by Bush-era policies.

And this is all prior to the deficit-growing effects of a financial crisis and major recession. A recession has two automatic effects on budget deficits: decreasing tax revenues due to decreased income (wealth) and the automatic stabilizing effects of unemployment insurance and Medicaid funding. Add to this the very necessary--and transitory--TARP and stimulus programs, which were the lifeblood of a collapsing financial sector and economy, respectively.

This is the story of our short-term budgetary deficits. Obama is hardly to blame. In many ways he--and his ambitious agenda--is a victim of the budgetary environment in which he rose to power. For a visual, above is a graph from the independent Center on Budget and Policy Priorities, detailing the major contributors to current (and future projected) deficits.

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So this is the situation we find ourselves in: Much of the deficit is inherited from ill-advised Bush-era policies, much of the rest is due to either the structural effects of recession or the Keynesian necessity to use government spending to boost a recessionary economy.

Republicans have been highly critical in general of the incumbent Democrats, but particularly with regard to the budget and deficits. You see, Republicans believe it's appropriate when they run up huge deficits and then pass on those deficits to the incoming Democratic administration. But, as was the case in 1993, years of Republican profligacy handcuffs the Democrats once they finally take power. It's tragic, but true. The years of Republican rule lead to huge deficits and an overall ballooning of the national debt. But as soon as Democrats take power, Republicans sound the siren call for fiscal retrenchment: "No, we can't afford such and such new social policy. We need to focus on reducing the deficit and the size of government." Oh, now we do, do we?

So what happens is the Republicans are allowed to have it both ways. They govern like a drunken sailor, and then campaign against the the government's fiscal irresponsibility once the Democrats are in power. But when asked how they would reduce the deficit, Republicans resort to talking points, mainly their answer for just about every problem: cut taxes. You may be asking yourself: How does one reduce the deficit by cutting taxes? And you'd be asking a very good question, one for which, I'm afraid, there is no answer based in reality. Indeed, Republicans like to highlight the deficit when it is politically expedient, but when presented with an opportunity to deal with the issue, they oppose the measure.

Consider this: When presented with voting on the establishment of a bipartisan deficit commission--which would be responsible for offering specific recommendations to reduce the deficit and would then be presented to Congress for an up-or-down vote--Republicans, including their leadership, largely voted against the creation of the commission. The same can be said of Health Care reform. The Democratic plans establish various cost controls, as well as cuts to wasteful Medicare spending in an effort to slow the growth trajectory of health care. In the long term, it is rising health care costs that are putting the largest strain on the budget, via Medicare and Medicaid. But instead of working with Democrats on reform measures that will reduce the cost of health care, and thereby reduce future budget deficit projections, the Republicans have politicized the entire effort, misrepresenting reform as rationing and "death panels".

And this leads to another very important reality: when the budget has become so politicized, how are we going to effectively address its challenges?

Monday, February 1, 2010

How the Republicans plan on killing Financial Regulatory Reform

Via the Huffington Post, Republican spin doctor Frank Luntz draws road map to kill financial regulatory reform efforts. Luntz was a major source of keywords and talking points in the Republican's effort to paint health care reform as a socialist, government takeover. Now he's showing the Republicans how to paint financial regulatory reform as a special interest giveaway. Here's the full memo:

Language of Financial Reform -

Wednesday, January 27, 2010

SOTU: What I want to hear tonight


-Admit that some mistakes have been made, but that now is not the time for retreat. There have been challenges and roadblocks along the way, but commitment to meaningful change will continue in earnest. Will not let the ways of Washington or the special interests block what needs to be done in order to improve our economy and set our nation on a firmer foundation moving forward.

-Call out Republicans for their utter obstruction in Congress and for their mischaracterizations and falsehoods. Challenge Democrats to rise to the challenge and govern.

-Continue to make the case for health care reform; challenge congress to work together to pass reform soon; tie health care reform to economy at large and deficit reduction; speak of the tangible benefits to millions of people--in the form of increased consumer protections; quell fears.

-Explain how the current economic situation has come about; outline why your policies--although unpopular--were necessary in preventing the worst case scenario; admit that there is much work left to be done.

-Focus on the working and middle classes; outline what policies you will be proposing in the weeks and months ahead to improve the lives of the middle class in tangible and meaningful ways while at the same time laying the groundwork for a more prosperous, equitable, and secure future.

-Call Republicans out for recalcitrant posture toward financial reform/regulation. Explain why financial reform is needed and how new regulations will protect consumers and aid in preventing a recurrence of the 2008 financial crisis.

-Make the case for why effective, bold government is needed; encourage Congress and the American people to rise to the challenge.

*Note: I plan on posting initial reaction to the speech either later tonight or tomorrow.

Why America has become ungovernable

Writing in Newsweek, Michael Cohen presents a succinct and clear commentary on why America has been so utterly ungovernable the past year. According to Cohen, there are three main causes: (1) A Republican strategy of complete obstructionism, consisting of what Cohen calls "an agenda of pure nihilism for naked political gain"; (2) the spinelessness of the Democratic majority in the face of adversity (read: Massachusetts); and (3) the schizophrenic nature of the electorate (i.e. demanding stronger government action to spur economic recovery while at the same time deriding the expanding role of government).

Monday, January 25, 2010

One possible route for health care reform passage

If health care reform is to pass, a compromise will need to be reached between the Senate and House. Before Scott Brown became the 41st Republican senator last week, the way forward was for the House and Senate to reconcile their respective bills, compromising on the most contentious issues, in order to produce a single, final bill to be sent to both the House and Senate for final passage. No longer having a 60 seat majority in the Senate, Democrats are now forced to explore other options.

One such option, as mentioned in an earlier post, is for the House to pass the Senate's bill outright, bypassing the need to muster a 60 vote filibuster-proof majority in the Senate. Such an option is fraught with difficulties as House liberals have shown much reluctance to pass the Senate bill without specific changes. House liberals want a higher excise tax threshold, increased subsidies, and a national--rather than state-based--health care exchange. It will not be possible to pass a bill with such features unless the Senate votes again.

Another option that is gaining traction is the idea of the House passing the Senate's bill, but only after the above concerns--higher subsidies, lower excise tax, national exchange--are passed by the Senate via the reconciliation process where only 51 votes would be needed. This route seems possible, but a lot will depend on how broadly the Senate parliamentarian interprets the reconciliation procedural rules. For more info on this development: here, here, and here.

Oh, and by the way, the contentious "Nebraska deal" that was struck with Sen. Ben Nelson could also be removed from the bill via the reconciliation process, removing what has become a symbol of closed-door, special interest legislating.

Friday, January 22, 2010

Pass the Senate bill

Here's Krugman's take on why the Democrats must pass health care reform and why it cannot be "pared down". Failing to pass health care, contrary to much conventional wisdom, would be absolute political suicide for Democrats. And paring down the bill would be terrible policy, as each major aspect of the legislation--outlawing discrimination due to preexisting conditions, an individual mandate, and subsidies to those who cannot afford to purchase insurance outright--is closely interconnected.

How the Democrats should approach yesterday's Supreme Court Ruling

The 5-4 Supreme Court ruling yesterday, overturning a century-long ban on direct corporate political contributions, will have a devastating effect on American democracy. Corporate treasuries will be used to flood the airwaves with ads favoring candidates most closely aligned with corporate interests, including Wall Street, big oil, and all the rest. Of course, corporate interests already have immense power and influence over American politics, but there were long standing safeguards against total plutocratic control over the system, dating back to 1907. After yesterday's decision, those safeguards and limits have been removed. Let the floodgates open!

Democrats clearly are the obvious short-term losers. But longer-term, it is our very democracy that is at stake. Whether one leans to the left, right, or center, the prospects of a political system completely in the hands of corporate money is a frightening prospect.

As Democrats face an onslaught of populist rage over a growing government, bank bailouts, and insider deals, they would be very wise to center their platform in 2010 on passing legislation that will limit the reach of corporate money, as far as is legally possible, and on passing a constitutional amendment restoring previous legal precedent, for the longer term.

Such a strategy is a political no-brainer. Democrats clearly have the most to lose if corporate money is allowed free reign in electoral politics. Republicans clearly have the most to gain. But how will voters view Republican resistance to legislative and/or constitutional overturning of yesterday's ruling? How could Republicans possibly run on a populist anti-government, anti-big business platform, if they are seen as the party aiding and abetting the corporate takeover of our democratic political system.

It's truly a win-win for Democrats--if they're smart enough to run on it. Either Republicans come on board in an effort to restore the democratic balance in place since 1907, or they oppose legislation and a constitutional convention, exposing them as the populist frauds they truly are.

A return to robber-baron era politics

The New York Times:

With a single, disastrous 5-to-4 ruling, the Supreme Court has thrust politics back to the robber-baron era of the 19th century. Disingenuously waving the flag of the First Amendment, the court’s conservative majority has paved the way for corporations to use their vast treasuries to overwhelm elections and intimidate elected officials into doing their bidding.

Thursday, January 21, 2010

Moving forward with health care reform

Ezra Klein outlines the Democrats' options for health care reform in the aftermath of Massachusetts. Needless to say, I tend to lean toward the first option listed.

Wither Democracy?

This Supreme Court decision may be much worse news for progressives--and American democracy--than anything that happened in Massachusetts on Tuesday. I will leave it to the experts to explain why. In short, the Supreme Court's decision today will cast a long and ominous shadow over American democracy for many years to come.

Update 2:54 PM: Here's the Nation's John Nichols' initial thoughts on the ruling.

Thoughts on Massachusetts and the Democratic Party

By now anyone who pays attention to politics has put forward an explanation as to how a Republican was able to win the U.S. Senate seat held by the late Ted Kennedy for over a half century. Many Democratic insiders have blamed the loss on the Coakley campaign's ineptitude (confusing Red Sox hero Curt Schilling as a "Yankee"; taking a two week vacation after the Democratic primary; taking votes for granted; and other campaign mishaps). Others like to point out that Scott Brown ran a terrific campaign: stealth like until the final week or two, by which point momentum was irreversibly on his side. And, of course, Republicans and other national pundits will have you believe that this race was, at its core, a referendum on President Obama, the Democratic agenda, and, most significantly, national health care reform.

In my estimation, the outcome on Tuesday was the result of all of the above, but for reasons Democrats can take solace in. Let me explain.

It is without debate that Coakley ran a lackluster campaign, which sealed her fate in such a difficult political environment. A more proactive, aggressive campaign would have closed the vacuum within which the Brown campaign flourished. Once Brown's prospects for victory became evident, Republicans (and conservative independents) became energized. They would not let this unique opportunity pass without a fight. I have always felt that Massachusetts is not quite as liberal a state as often made out to be. There are large pockets of independent and even conservative leaning people throughout the commonwealth, particularly in suburban and exurban areas. The problem for Republicans in winning state wide election over the past several decades has, I believe, been largely due to right-leaning voter resignation and defeatism, to the point where Republicans would simply not vote, or if they did it would be a "protest vote." This all changed over the past few weeks as Republicans came out in droves, energized and determined to change the balance of power, not only in Massachusetts politics, but in Washington as well.

There is no question that there are more Democrats in Massachusetts than Republicans (on the order of 3:1). But this election came at perhaps the low-point of Democratic and progressive morale, both nationally, and also in Massachusetts. The Democratic base, such as it is, has become disillusioned with the party's inability to enact the change promised in the past two elections (2006 and 2008), despite a Democrat in the White House and historically large majorities in both houses of Congress. Democrats feel as if the elected leadership has compromised on too much, particularly with the insurance and pharmaceutical industries with regard to health reform, the Democrats' signature policy issue. Furthermore, bank bailouts and escalation in Afghanistan have further disillusioned progressives, prompting many to question whether this administration is willing and/or capable of transformative, progressive change.

From an economic standpoint, the bank bailout program, known as TARP, was in many ways necessary in preventing a complete collapse of the national--and world--financial system, with dire consequences for so-called Main Street. The same can be said about the stimulus program, despite its seeming inadequacy. But these programs did not have to be so unpopular among progressives, let alone the average American. Where Obama and the Democrats failed most thoroughly was not with these policies, per se, but in their failure to sell these policies by tying them to a larger narrative. They've been almost constantly on the defensive, having to react to Republican accusations and falsehoods, rather than getting out in front of these policies, explaining to the American people why they are necessary and how we got to where we are today. For instance, there is much outrage over a ballooning national debt (which is much to blame on the previous administration) and over increased taxes (even though the Democrats have actually cut taxes as part of the stimulus bill--at least in the short term). In failing to do this, they left the door wide open for criticism from both the right and left. In addition to its failure to market these complicated policies, the administration has failed to introduce complimentary policies that would demonstrate a common cause with working Americans.

And of course there was health care. Republicans will have you believe that the Massachusetts election was a referendum on health care reform. They are partly correct, but not necessarily because voters want to prevent health care reform outright because it goes "too far." Nope. To the extent that the Massachusetts outcome was a result of health care policy, I believe it was because Democrats had (1) dragged their feet on the issue throughout the summer and fall, making uncomfortable compromises along the way; (2) the bill was stripped of many of its most popular components, particularly the so-called public option; and (3) progressive morale for the entire process has dissipated, prompting many world-be Democratic voters to stay home in protest. Therefore, it becomes increasingly clear that health care was a major factor in the MA election, but not for the reasons Republicans claim. A new poll by the liberal Research2000 demonstrates that, in Massachusetts, most Scott Brown voters felt health care reform didn't go "far enough".

And finally, the Massachusetts outcome was less an indictment of Democrats than it was of Washington. Democrats happen to be the party in power, but many of the causes of voter frustration stem from the perception that Washington simply doesn't work--it lacks the ability to pass legislation that represents meaningful change--even when the party in power has historical majorities in Congress and the White House! The ways in which the Democratic agenda has been methodically and procedurally derailed by a small minority of 40 (and now 41) Republican senators (and a handful of recalcitrant Democrats) has been frustrating to millions of Americans who so thoroughly repudiated conservatism in 2006 and then, for good measure, in 2008. Voters are asking themselves: How is it that Washington is being run almost exclusively by the Democrats we swept into power, yet these same people run the place as if they're still in the minority?

There's an enormous amount of populous outrage throughout the country--both from the left and right. This is understandable. Much of it stems from the way Democrats have governed (or failed to govern); more, perhaps, stems from the feeling that the country has been on the wrong course for almost a decade now, with little being done to change direction.

What I find most interesting is the timing of the outrage. The Bush Administration and Washington Republicans were given the benefit of the doubt for nearly six years before voters finally turned their back on conservatism, culminating in the 2006 Democratic electoral sweep. The Obama Administration has been in power for exactly one year now--having inherited the most devastating financial crisis since the Great Depression, two unpopular wars, and many other significant challenges. Yet, the outrage is overwhelming, as demonstrated by populist "Tea Party" movements and public opinion polling. Understandably, the country is in a very difficult place right now, with unemployment above 10% and a growing sense of economic insecurity. But it remains striking how quickly the American public has turned its back on the party and President it chose to lead them back onto the road of prosperity and economic security. (Side note: This will be a fascinating era for Political Scientists to study, particularly the aforementioned "timing" of popular outrage).

It must be noted that the country endured a Republican president for three years during the height of the Great Depression before finally sweeping Roosevelt and the New Dealers into power in late 1932. Republican policy vis-a-vis the Depression had been so thoroughly discredited by the time Roosevelt came to power that the public was willing to give the Democrats time to set the situation right. Today, however, the financial crisis and the "Great Recession" were only in their infancy as late as the autumn of 2008. As such, despite its roots in Republican policy dating back to Reagan, the current economic situation has been most closely associated with Obama and the Democrats--at least in the minds of many voters.

So how should the Democrats move forward in 2010 and beyond?

First, Democrats should govern as if they actually have historical majorities in Congress and occupy the White House. This means enacting legislation that positively affects people's lives in tangible ways, starting with the passage of national health care reform. If Democrats think they'll face a less hostile political environment in the fall if they fail to pass health reform than if they do successfully pass it, they're more inept than I give them credit for.

Secondly, it is time for Democrats to show the public that they're working for them. Generally speaking, Democratic policies are more to the advantage of working and middle-class people than are Republican policies, but this isn't always perceived clearly by the public. Republicans are good at politics, portraying themselves as having "common sense" solutions to the nation's challenges, while Democrats are portrayed as being "elitist" (whatever that means). It's time for Democrats to call Republicans out on their faux-populism and present to the American people a strong set of policies that affect their lives positively. If they can paint an overarching narrative that explains how we got where we are today and clearly spell out what we need to do to change course, the American people will listen. Democrats need to be confident in their convictions and trusting that that American people will respond positively--if only given the opportunity to do so.

Massachusetts doesn't have to be a sign of things to come for Democrats, if only they take it as a wake up call.