March 12, 2010
Brooks' main thrust is that Obama isn't the pinko that the righties think he is, nor is he the sell-out that the hard Left thinks he is. The Gospel according to David says that Obama's a left-center President. Of course, Brooks is wrong. Obama has always been a Leftist. He grew up a Leftist, he campaigned mostly as a Leftist, and he's doing his damnedest to govern as Left as he possibly can.
Before the election, I argued that Obama was a neo-Fabian socialist. Fabian socialism is defined at least in part by its tactics of incrementalism, attrition, and misdirection. Using the working thesis that Obama is an incrementalist (a "progressive" even), the lack of complete sovietization of our economy shouldn't count against me. Nothing that has occurred during Obama's time in office has dissuaded me from this assessment.
He grew up a red diaper baby. Obama has so many communist buddies in his background that the Jawas asked rhetorically (?), "Does Barack Obama have any friends who AREN'T communists?". The red background includes Mom, Dad, Frank Marshall Davis, Jeremiah Wright, Michael Phleger, Bill Ayres, Bernadine Dohrn, Alice Palmer, Michael Klonsky, as well has his connections to ACORN, the New Party (whose endorsement he sought), and the Democratic Socialists of America. There are first person accounts of the collegiate Barack Obama acting like the vanguard of the frickin' proletariat.
But of course, that's the distant past. How did he campaign?
Not as a moderate, I'd argue. He campaigned on direct wealth redistribution through a negative income tax, increasing taxes for "fairness" purposes even if it would decrease tax revenue, the Global Poverty Act which would commit the US to an international wealth redistribution scheme to the tune of about a trillion dollars over ten years, support of the dirigiste auto company bailouts, punitive taxes on oil companies coupled with cash redistribution, EFCA/"Card Check", and on the banning of "scab" employees during union strikes. And of course, he was the anti-war candidate.
(Semi-random palate cleanser - The Iron Lady dissing the socialists.)
Ok, so he argued against an individual mandate on health insurance in the primary with Hilary. That went out the window pretty quickly, and it's now the centerpiece of his plan. Which brings us to how he's governing...
Well, we could start with the political purge from the bureaucracy. Or the war against democracy in Honduras. Or maybe the alleged "scrubbing" of military assessments. And then there's Van Jones and the various Maoists.
But maybe I should stick to his big projects -- the stimulus and healthcare.
The stimulus was a massive giveaway to all the lefty spending priorities. To the extent that it provided funds to states, it did so by locking the states into higher future spending... permanently increasing the overall size of government on purpose and for its own sake.
As to healthcare, some would argue that Obama's sold out on Lefty principles. I disagree. Firstly, this bill he's pushing now is designed to be just centrist enough to pass... which it still may not. A Fabian gets what he can get, always moving the line of scrimmage down the field. Secondly, it's no secret that the original Obamacare "public option" plan was designed, yes designed, to degrade more or less gracefully into a single-payer system. If you doubt this, you've been living on the moon, and I have some ocean-front property in Nevada I'd like to sell you. That he's given up single payer for the time being is merely a partial nod to electoral reality, not a genuinely centrist development.
Brooks refers to Obama's "tenacity unmatched in modern political history" in pushing the healthcare plan. After the Massachusetts Miracle, I think a description including the words "deep, stubborn, ideological denial" might be in order. Obama said he'd pivot to "jobs", but he just can't quit healthcare. He's irrationally obsessed with it, and he has told blatant lie after lie in its service, even as it threatens to destroy his Presidency. (How's that for pragmatic?)
Brooks mentions Obama's plan to remove failing teachers. -- Wow, how not-socialist of him. Oh wait, no. Even the Soviets needed competent educators. The unceremonious sinking of the DC Voucher program is more in line with his philosophy.
Brooks points to foreign policy, and Obama's newfound testicular fortitude on Afghanistan. While this surely irritates the anti-war Lefties, there's nothing inherently un-Leftist about using America's "big stick". ÜberProgressives Wilson and FDR were both wartime Presidents. Progressives became enamored of applying the military model to civilian society, and salivated at the thought of "mobilizing" Americans in the same way her soldiers were.
Brooks also examines the realm of finance, where Obama seems to have let down the bank-nationalization crowd. Again, my answer is incrementalism. Incrementalism is not the same as centrism. He's getting to it, don't you worry. Recall, the criterion for allowing banks to repay TARP was "the national economic interest".
For all that I've written here, Mr. Brooks would surely accuse me of living in a "cocoon". I say Brooks has his head in the sand.
Would Obamacare cover the surgery to remove your lips from the President's posterior, Mr. Brooks?
Posted by: JoeCollins at
03:55 PM
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Posted by: Go_Fish at March 12, 2010 04:41 PM (U2K1L)
Posted by: ECM at March 12, 2010 06:40 PM (nYKDd)
Posted by: Dr. Spank at March 12, 2010 06:51 PM (I1/U/)
Posted by: eddiebear at March 12, 2010 07:21 PM (WLzRC)
Brooks is a tool, and this post is well thought out. A few notes about the financial aspect:
From the standpoint of a socialist trying to quietly increase government control in a capitalistic society, the current bank situation is ideal. Those on the left who want immediate nationalization, and those on the right who believe in the current veneer of bank capitalism, are ill-informed.
Effectively, the big banks are already nationalized, as their survival depends entirely upon the government at this point. If off-balance sheet assets were forced bank onto the balance sheet and if mark-to-market rules were restored (and other non-economic accounting gimmicks were disallowed), most (if not all) the big banks would be shown to be bankrupt. Thus, Obama has the financial sector completely in his pocket -- when Obama said he was all that stood between the bankers and the pitchforks, it was one of the few times he told the truth.
Also, ZIRP (zero interest-rate policy) is an incredibly socialistic tool (which may come as a surprise to many on the right who think it's great for businesses). While the effects of ZIRP are highly complex, in part it has the following effects: it penalizes savers for the benefit of the banks and risk-takers, making a good portion of the population (mostly the elderly) more dependent on the government for income; it also allows borrowing by the government that could not otherwise occur, due to interest expense issues. In short, ZIRP perpetuates a transfer of wealth from the middle-class to banks and the government (which are largely one and the same at this point).
Granted, a good bit of the authority to fix the rules lies with with congress, but Obama has done what he could (renomination of Bernancke, dog and pony show with executive salaries, failure to exercise the regulatory authority of the Treasury, etc.) to keep things on the current path. The reason Obama hasn't done much of anything with the economy is because he doesn't want to -- things are going swimmingly as far as he's concerned.
Posted by: Hermit Dave at March 12, 2010 07:29 PM (WhFvm)
Posted by: JoeCollins at March 12, 2010 07:44 PM (VWd7T)
Posted by: Dr. Spank at March 12, 2010 09:26 PM (I1/U/)
Posted by: eddiebear at March 12, 2010 10:16 PM (7PZPX)
Mark-to-model is one of those things that, like counter-cyclical government deficits, sounds good in theory but is horrible in practice.
The main problems with mark-to model:
Tail risk is never properly accounted for (see LTCM).
Systemic risk is masked (see CDSs -- eg. AIG -- and CDOs).
Fraud is much easier, as mark-to-model eventually becomes mark-to-fantasy (our current situation). For example, banks are currently holding 2nds on the books at or near par, even if the primaries are distressed. This is insanity, not mark-to-model.
Mark-to-model is popular with those who would attempt to eliminate the business cycle. This is an admirable concept, but will simply never work in practice, barring a complete change in human nature.
The only situation in which mark-to-model becomes preferable is during a purely financial panic (eg. 1987). There are enough tools to use during financial panics that allowing mark-to-model solely for this eventuality is a terrible idea.
Posted by: Hermit Dave at March 12, 2010 10:50 PM (WhFvm)
Posted by: eddiebear at March 12, 2010 11:15 PM (7PZPX)
Yep eddie, Yellin (and the others under discussion) would just perpetuate the current idiocy. Reuters, of course, can't stick their tongue far enough up her and Obama's asses.
Inflation, however, is not a given. Have a look at Japan, which is going into its third decade of a deflationary depression, even though their government debt (as a percentage of GDP) continues to hit record highs.
Posted by: Hermit Dave at March 12, 2010 11:23 PM (WhFvm)
Posted by: wide format printer at February 17, 2011 05:44 AM (k+H1o)
Posted by: zara at March 14, 2011 10:17 PM (ziZas)
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