Paul Krugman, Barack Obama, Elizabeth Warren (AP/Reuters/Bob Strong/Junko Kimura-Matsumoto/Charles Dharapak/Photo montage by Salon)

He's not suddenly Paul Krugman: Let's not morph Obama into Elizabeth Warren quite yet

Populist State of the Union with a fiery tone has liberals excited. They'd be wise to remember Obama's true nature


Bill Curry
January 25, 2015 5:00PM (UTC)

Barack Obama’s State of the Union speech capped an epic political makeover. In two months he went from the living avatar of the political and economic establishment to a self-styled populist scourge. It’s as if he walked into a plastic surgeon’s office after Election Day and said "make me look like Bernie Sanders." No president has ever tried to alter his image so drastically or so fast. I wonder if he’ll pull it off.

His campaign began emphatically on Nov. 5. Instead of the ritual submission the media demands of defeated party leaders, Obama used his post-election press conference to renew his vow to enact substantial immigration reform by executive order. Days later, he announced a major climate accord with China and finally came down foursquare for net neutrality.

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These were big moves, but Obama was just warming up. In December, he announced the surprising end of our miserably failed Cuban trade embargo. Earlier this month, he unveiled a bold bid to make community college free for millions of students all across America.

Still not impressed? On Tuesday night he called for paid family leave, equal pay for equal work, a minimum wage hike and a tripling of the child tax credit to $3,000. He’s also pushing a $500 "second earner" tax credit and wants to give college students up to $2,500 apiece to help with expenses. The best part is how he’d pay for it all, mostly by taxing big banks, raising capital gains rates and closing loopholes that allows rich heirs to avoid capital gains taxes altogether.

A not-so-subtle shift in tone followed. Gone, for now, is Obama the ceaseless appeaser. He's been replaced by a president with a more combative stance, as befits a true people’s champion. At times on Tuesday Obama even seemed to taunt his tormentors. In the last two months he has threatened five vetoes. In the previous six years he’d issued just two; that's the fewest since James Garfield. Garfield, by the way, was president for six months.

What should we make of this new Obama? Are he and his new agenda for real? For liberals, these are tender questions. When Obama first appeared, their response was almost worshipful. Even today, many liberals treat Obama's progressive critics as apostates. Given their deep investment in him, the vitriol of Tea Party attacks and the looming specter of GOP rule, it’s easy to understand why. But it’s crucial now for his liberal critics and defenders alike to see him as he is.

Obama's new program seems real enough. We can’t gauge its full impact without more numbers, but this much is clear: Do it all -- equal pay, minimum wage hike, community college tuition, family leave, middle-class tax credits and taxes on big banks and the superrich -- and we’d make a very big dent in income inequality. Add the financial transaction tax Ralph Nader and Rose Ann DeMoro’s California nurses have long been pushing -- and that some House Democrats now embrace -- and you have enough money on the table to reverse decades of wage stagnation.

It may seem a big claim but the numbers are close to consensual. The transaction tax would raise a trillion dollars in 10 years, in which time a modest minimum wage hike would put $300 billion in the pockets of the working poor. Equal pay for equal work could do as much. Even without Obama’s numbers, we know the ideas gaining ground among Democrats could solve one of our biggest problems. As the president said apropos of just about everything, "this is good news, people."

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So what’s not to like? The bad news is there's quite a bit. The problem is that Obama’s deeds so often contradict his words. Indeed, examine his actions over these same two months and one could also construct a compelling counter-narrative to this tale of populist transformation.

Consider climate change. While negotiating his China deal, Obama was also busy auctioning off drilling rights to 112 million acres of the Gulf of Mexico. As soon as the deal was done, he was on the phone urging Democrats to back a bill that cut EPA staff, let the Export-Import Bank fund coal-fired electric plants and blocked enforcement of new rules for energy-efficient light bulbs.

In his first term Obama passed the word to his top hires to quiet down about global warming. He likes fracking and brags about increasing oil production. He won’t let Congress approve the Keystone pipeline, but he may approve it himself. In short, he’s a study in mixed climate messages.

The net neutrality story is even more confounding. The statement Obama released was one of the more thoughtful of his presidency. But he’d already made Tom Wheeler, CEO of the most powerful lobby opposing net neutrality, head of the Federal Communications Commission. And they decide the issue. It’s an independent commission that does what it wants. Its members may be moved by Obama’s eloquent words, or just confused.

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Perhaps the most troubling contradiction lies in foreign policy. Obama began his speech on Tuesday by saying “tonight we turn the page." As evidence he cited our newly reduced role in Afghanistan. As he put it: "For the first time since 9/11, our combat mission in Afghanistan is over. Six years ago, nearly 180,000 American troops served in Iraq and Afghanistan. Today fewer than 15,000 remain. And we salute the courage and sacrifice of every man and woman… who has served to keep us safe."

Obama’s relative restraint is such an improvement on George W. Bush’s bellicosity that we can’t help but judge him on a curve. That he’s bogged down in Afghanistan is no surprise, as these wars are always easier to start than finish. (It’s why they call them quagmires.) But in fact there are more than 15,000 Americans still left there. There are, for instance, the private contractors, whose number tripled under Obama. In early 2014, the last time figures were reported, there were 24,000. Obama says the "combat mission" is over -- but the combat isn’t finished and neither is the mission.

On Wednesday, Mother Jones ran a story by Nick Turse of TomDispatch.com reporting that in 2014 Obama deployed U.S. Special Ops forces to 133 countries. That’s more than two-thirds of all the countries in the world; it's a disturbing number and one that also grew exponentially on Obama's watch. Even more disturbing are the drone strikes Obama has authorized, more than 10 times the number authorized by George W. Bush. American drones have now killed an estimate of more than 4,000 people. At least 20 percent of them were innocent civilians; less than 2 percent were high-value military targets.

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In case you thought our combat mission in Iraq ended, buried in Obama’s speech was a call for Congress to pass a "resolution to authorize the use of force against ISIL." That was it -- no explanation of vital interests at stake or limits to set. It was strange coming from a man who wouldn’t be president but for a speech he once gave against a war into which we were tragically conned.

Our war with ISIL proceeds under cover of our original Iraq war resolution, the exhaustion of which Obama concedes by implication. Someone should tell him the same resolution is used to justify drone strikes in nations we’re not at war with. Someone might also mention that use of "private security contractors" — the word "mercenary" stirs indignation — ill befits a democracy; that sending special ops forces to 133 countries also requires authorization and that if you declare an end to combat operations in two wars, your next budget should declare a peace dividend.

Obama’s failure to reconcile words to deeds detracts mightily from the grab bag of ideas he offers under the catchy title "middle class economics." As noted, these policies could really improve people’s lives. But while he’s out thumping for them, he’s in hot pursuit of what he hopes will be his last coup, approval of the Trans Pacific Trade Partnership. It’s such a popular idea he chose not to breathe its name in his speech. What he did say was worth sampling if only to savor its cleverness: "China wants to write the rules for the world’s fastest-growing region. We should write those rules… That’s why I’m asking both parties to give me trade promotion authority to protect American workers, with strong new trade deals from Asia to Europe that aren’t just free, but fair."

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He doesn’t want another free trade fiasco like that awful NAFTA, just “trade promotion authority to protect American workers.” Surely we can all be for that.

Nearly all left-leaning Democrats oppose the TPTP: Paul Krugman, Joe Stiglitz, Bob Reich, Elizabeth Warren. One can’t imagine Obama changing his mind on it any more than one imagines him asking any of them to help craft his new populist agenda. As he likes to reassure his donors, “I’m a market kind of guy,” meaning he comes as close as a Democrat can to being a market ideologue. And yes, there is such a thing.

Market ideologues aren’t the sort to throw bombs or ruin dinner parties but they’re ideologues nonetheless. Their solution for every problem known to mankind is to adopt "market principles." Their influence on Obama’s generation of Democratic elites has been profound. It’s why so many of them apply market theory to issues to which it is ill-suited, such as carbon reduction, health care and public education.

Obama doesn’t get that free trade can be as good as he says for business and still be a terrible deal for workers. He doesn’t get that markets by their nature do a great job of creating wealth and a poor one of distributing it; that absent a strong government to encode and enforce a social contract there is no middle class; that pitting our workers against those lacking such support will eventually impoverish them. It’s why he opposed raising the minimum wage when he had the votes to do it in his first term. It's why he bailed out banks but not homeowners, and abandoned the public option.

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Missing from Obama’s speech, as from his presidency, was any mention of public corruption. Countless polls attest to the depth of public revulsion at the domination of government by moneyed interests. Obama’s silence allows the Tea Party to fly the flag of "crony capitalism." Most progressives miss the criticality of this issue that social change movements the world over put at the very top of their agendas.

It makes it really hard to enact new government programs, which is one reason Obama didn’t propose any new federal programs, just tax cuts, private sector mandates and grants to states. There are things the federal government does better, but voters won’t hand over the keys to a car with a cracked engine block. A real populist would fix what we all know is broken.

Betting on what a politician truly thinks is a high-risk business. Some say Obama has changed. Perhaps so; maybe a friend gave him a Krugman book for Christmas and midway through it he had an epiphany. Others say he feels liberated; that's a popular hope among liberals in that it implies he really did love them all along. Still others say he wants to shape his legacy or the next debate.

But in studying Obama, one discovers a man of markedly fixed views. His take on issues has barely budged over a lifetime. Once he sets a course he sticks to it. We saw it in 2008 when Hillary Clinton rose from the dead sporting a new populist persona. It surprised many to see her peddling her wares to the working class. It shocked them when she won the Pennsylvania primary. John McCain shocked some by running even with him up until the Wall Street crash. We don’t know if either shocked Obama, but we do know he never once changed course.

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On Tuesday he devoted an astonishing 20 percent of his time not to global warming or "middle-class economics" but to a defense of his 10-year pursuit of the holy grail of bipartisanship. For six years Obama played Charlie Brown to the Republicans’ Lucy in budget battles. In December he took another crack at the football. Is his new populism such a far cry from his 2008 rhetoric of transformation, or just a bit more specific to satisfy the hunger still rising for change? Do we really think it arose from somewhere other than the usual focus groups and polls?

There’s good news in all this. Someone changed, and if it isn’t Obama it must be us. It isn’t any politician but the power of public opinion that drives this debate. Republicans feel it. Hearing just an outline of a populist message scares them. Pundits say they won’t pass any part of Obama’s agenda but if they’re smart they will; perhaps a lesser minimum wage hike and something just for women. But we’ll never win the victory we must win without a strong progressive movement because neither this system nor those who run it will ever really change.


Bill Curry

Bill Curry was White House counselor to President Bill Clinton and a two-time Democratic nominee for governor of Connecticut.

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