Showing posts with label presidency. Show all posts
Showing posts with label presidency. Show all posts

Jan 19, 2010

Why Obama Must Reconcile His Inner Jefferson with His Inner Wilson

Barack Obama might yet revolutionize America's foreign policy. But if he can't reconcile his inner Thomas Jefferson with his inner Woodrow Wilson, the 44th president could end up like No. 39.

BY WALTER RUSSELL MEAD | JANUARY/FEBRUARY 2010

Neither a cold-blooded realist nor a bleeding-heart idealist, Barack Obama has a split personality when it comes to foreign policy. So do most U.S. presidents, of course, and the ideas that inspire this one have a long history at the core of the American political tradition. In the past, such ideas have served the country well. But the conflicting impulses influencing how this young leader thinks about the world threaten to tear his presidency apart -- and, in the worst scenario, turn him into a new Jimmy Carter.

Obama's long deliberation over the war in Afghanistan is a case study in presidential schizophrenia: After 94 days of internal discussion and debate, he ended up splitting the difference -- rushing in more troops as his generals wanted, while calling for their departure to begin in July 2011 as his liberal base demanded. It was a sober compromise that suggests a man struggling to reconcile his worldview with the weight of inherited problems. Like many of his predecessors, Obama is not only buffeted by strong political headwinds, but also pulled in opposing directions by two of the major schools of thought that have guided American foreign-policy debates since colonial times.

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All the Presidents' Men

Politicians and public intellectuals have been influenced by former U.S. presidents, be it Jefferson, Hamilton, Wilson, or Jackson.

In general, U.S. presidents see the world through the eyes of four giants: Alexander Hamilton, Woodrow Wilson, Thomas Jefferson, and Andrew Jackson. Hamiltonians share the first Treasury secretary's belief that a strong national government and a strong military should pursue a realist global policy and that the government can and should promote economic development and the interests of American business at home and abroad. Wilsonians agree with Hamiltonians on the need for a global foreign policy, but see the promotion of democracy and human rights as the core elements of American grand strategy. Jeffersonians dissent from this globalist consensus; they want the United States to minimize its commitments and, as much as possible, dismantle the national-security state. Jacksonians are today's Fox News watchers. They are populists suspicious of Hamiltonian business links, Wilsonian do-gooding, and Jeffersonian weakness.

Moderate Republicans tend to be Hamiltonians. Move right toward the Sarah Palin range of the party and the Jacksonian influence grows. Centrist Democrats tend to be interventionist-minded Wilsonians, while on the left and the dovish side they are increasingly Jeffersonian, more interested in improving American democracy at home than exporting it abroad.

Some presidents build coalitions; others stay close to one favorite school. As the Cold War ended, George H.W. Bush's administration steered a largely Hamiltonian course, and many of those Hamiltonians later dissented from his son's war in Iraq. Bill Clinton's administration in the 1990s mixed Hamiltonian and Wilsonian tendencies. This dichotomy resulted in bitter administration infighting when those ideologies came into conflict -- over humanitarian interventions in the Balkans and Rwanda, for example, and again over the relative weight to be given to human rights and trade in U.S. relations with China.

More recently, George W. Bush's presidency was defined by an effort to bring Jacksonians and Wilsonians into a coalition; the political failure of Bush's ambitious approach created the context that made the Obama presidency possible.

Sept. 11, 2001, was one of those rare and electrifying moments that waken Jacksonian America and focus its attention on the international arena. The U.S. homeland was not only under attack, it was under attack by an international conspiracy of terrorists who engaged in what Jacksonians consider dishonorable warfare: targeting civilians. Jacksonian attitudes toward war were shaped by generations of conflict with Native American peoples across the United States and before that by centuries of border conflict in England, Scotland, and Ireland. Against "honorable" enemies who observe the laws of war, one is obliged to fight fair; those who disregard the rules must be hunted down and killed, regardless of technical niceties.

When the United States is attacked, Jacksonians demand action; they leave strategy to the national leadership. But Bush's tough-minded Jacksonian response to 9/11 -- invading Afghanistan and toppling the Taliban government that gave safe haven to the plotters -- gave way to what appeared to be Wilsonian meddling in Iraq. Originally, Bush's argument for overthrowing Saddam Hussein rested on two charges that resonated powerfully with Jacksonians: Hussein was building weapons of mass destruction, and he had close links with al Qaeda. But the war dragged on, and as Hussein's fabled hoards of WMD failed to appear and the links between Iraq and al Qaeda failed to emerge, Bush shifted to a Wilsonian rationale. This was no longer a war of defense against a pending threat or a war of retaliation; it was a war to establish democracy, first in Iraq and then throughout the region. Nation-building and democracy-spreading became the cornerstones of the administration's Middle East policy.

Bush could not have developed a strategy better calculated to dissolve his political support at home. Jacksonians historically have little sympathy for expensive and risky democracy-promoting ventures abroad. They generally opposed the humanitarian interventions in Somalia, Bosnia, and Haiti during the Clinton years; they did not and do not think American young people should die and American treasure should be scattered to spread democracy or protect human rights overseas. Paradoxically, Jacksonians also opposed "cut and run" options to end the war in Iraq even as they lost faith in both Bush and the Republican Party; they don't like wars for democracy, but they also don't want to see the United States lose once troops and the national honor have been committed. In Bush's last year in office, a standoff ensued: The Democratic congressional majorities were powerless to force change in his Iraq strategy and Bush remained free to increase U.S. troop levels, yet the war itself and Bush's rationale for it remained deeply unpopular.

Enter Obama. An early and consistent opponent of the Iraq war, Obama was able to bring together the elements of the Democratic Party's foreign-policy base who were most profoundly opposed to (and horrified by) Bush's policy. Obama made opposition to the Iraq war a centerpiece of his eloquent campaign, drawing on arguments that echoed U.S. anti-war movements all the way back to Henry David Thoreau's opposition to the Mexican-American War.
Like Carter in the 1970s, Obama comes from the old-fashioned Jeffersonian wing of the Democratic Party, and the strategic goal of his foreign policy is to reduce America's costs and risks overseas by limiting U.S. commitments wherever possible. He's a believer in the notion that the United States can best spread democracy and support peace by becoming an example of democracy at home and moderation abroad. More than this, Jeffersonians such as Obama think oversize commitments abroad undermine American democracy at home. Large military budgets divert resources from pressing domestic needs; close association with corrupt and tyrannical foreign regimes involves the United States in dirty and cynical alliances; the swelling national-security state threatens civil liberties and leads to powerful pro-war, pro-engagement lobbies among corporations nourished on grossly swollen federal defense budgets.

While Bush argued that the only possible response to the 9/11 attacks was to deepen America's military and political commitments in the Middle East, Obama initially sought to enhance America's security by reducing those commitments and toning down aspects of U.S. Middle East policy, such as support for Israel, that foment hostility and suspicion in the region. He seeks to pull U.S. power back from the borderlands of Russia, reducing the risk of conflict with Moscow. In Latin America, he has so far behaved with scrupulous caution and, clearly, is hoping to normalize relations with Cuba while avoiding collisions with the "Bolivarian" states of Venezuela, Ecuador, and Bolivia.

Obama seeks a quiet world in order to focus his efforts on domestic reform -- and to create conditions that would allow him to dismantle some of the national-security state inherited from the Cold War and given new life and vigor after 9/11. Preferring disarmament agreements to military buildups and hoping to substitute regional balance-of-power arrangements for massive unilateral U.S. force commitments all over the globe, the president wishes ultimately for an orderly world in which burdens are shared and the military power of the United States is a less prominent feature on the international scene.

While Wilsonians believe that no lasting stability is possible in a world filled with dictatorships, Jeffersonians like Obama argue that even bad regimes can be orderly international citizens if the incentives are properly aligned. Syria and Iran don't need to become democratic states for the United States to reach long-term, mutually beneficial arrangements with them. And it is North Korea's policies, not the character of its regime, that pose a threat to the Pacific region.

At this strategic level, Obama's foreign policy looks a little bit like that of Richard Nixon and Henry Kissinger. In Afghanistan and Iraq, he hopes to extract U.S. forces from costly wars by the contemporary equivalent of the "Vietnamization" policy of the Nixon years. He looks to achieve an opening with Iran comparable to Nixon's rapprochement with communist China. Just as Nixon established a constructive relationship with China despite the radical "Red Guard" domestic policies Chinese leader Mao Zedong was pursuing at the time, Obama does not see ideological conflict as necessarily leading to poor strategic relations between the United States and the Islamic Republic. Just as Nixon and Kissinger sought to divert international attention from their retreat in Indochina by razzle-dazzle global diplomacy that placed Washington at the center of world politics even as it reduced its force posture, so too the Obama administration hopes to use the president's global popularity to cover a strategic withdrawal from the exposed position in the Middle East that it inherited from the Bush administration.

This is both an ambitious and an attractive vision. Success would reduce the level of international tension even as the United States scales back its commitments. The United States would remain, by far, the dominant military power in the world, but it would sustain this role with significantly fewer demands on its resources and less danger of war.

Yet as Obama is already discovering, any president attempting such a Jeffersonian grand strategy in the 21st century faces many challenges. In the 19th-century heyday of Jeffersonian foreign policy in American politics, it was easier for U.S. presidents to limit the country's commitments. Britain played a global role similar to that of the United States today, providing a stable security environment and promoting international trade and investment. Cruising as a free rider in the British world system allowed Americans to reap the benefits of Britain's world order without paying its costs.

As British power waned in the 20th century, Americans faced starker choices. With the British Empire no longer able to provide political and economic security worldwide, the United States had to choose between replacing Britain as the linchpin of world order with all the headaches that entailed or going about its business in a disorderly world. In the 1920s and 1930s, Americans gave this latter course a try; the rapid-fire series of catastrophes -- the Great Depression, World War II, Stalin's bid for Eurasian hegemony -- convinced virtually all policymakers that the first course, risky and expensive as it proved, was the lesser of the two evils.

Indeed, during Franklin D. Roosevelt's first two terms, the United States pursued essentially Jeffersonian policies in Europe and Asia, avoiding confrontations with Germany and Japan. The result was the bloodiest war in world history, not a stable condominium of satisfied powers. Since that time, Jeffersonians have had to come to terms with the vast set of interlocking political, economic, and military commitments that bind the United States to its role in the postwar era. Jeffersonian instincts call for pruning these commitments back, but it is not always easy to know where to cut.

The other schools are generally skeptical about reducing American commitments. Wilsonians interpret Jeffersonian restraint as moral cowardice. Why, they ask, did Obama refuse to meet the sainted Dalai Lama on his way to kowtow to the dictators in Beijing? Jacksonians think it is cowardice pure and simple. And why not stand up to Iran? Hamiltonians may agree with Jeffersonian restraint in particular cases -- they don't want to occupy Darfur either -- but sooner or later they attack Jeffersonians for failing to develop and project sufficient American power in a dangerous world. Moreover, Hamiltonians generally favor free trade and a strong dollar policy; in current circumstances Hamiltonians are also pushing fiscal restraint. Obama will not willingly move far or fast enough to keep them happy.

The widespread criticism of Obama's extended Afghanistan deliberations is a case in point. To a Jeffersonian president, war is a grave matter and such an undesirable course that it should only be entered into with the greatest deliberation and caution; war is truly a last resort, and the costs of rash commitments are more troubling than the costs of debate and delay. Hamiltonians would be more concerned with executing the decision swiftly and with hiding from other powers any impression of division among American counsels. But Obama found harsh critics on all sides: Wilsonians recoiled from the evident willingness of the president to abandon human rights or political objectives to settle the war. Jacksonians did not understand what, other than cowardice or "dithering," could account for his reluctance to support the professional military recommendation. And the most purist of the Jeffersonians -- neoisolationists on both left and right -- turned on Obama as a sellout. Jeffersonian foreign policy is no bed of roses.

In recent history, Jeffersonian foreign policy has often faced attacks from all the other schools of thought. Kissinger's policy of détente was blasted on the right by conservative Republicans who wanted a stronger stand against communism and on the left by human rights Democrats who hated the cynical regional alliances the Nixon Doctrine involved (with the shah of Iran, for example). Carter faced many of the same problems, and the image of weakness and indecision that helped doom his 1980 run for re-election is a perennial problem for Jeffersonian presidents. Obama will have to leap over these hurdles now, too.

It is not only Americans who will challenge the new American foreign policy. Will Russia and Iran respond to Obama's conciliatory approach with reciprocal concessions -- or, emboldened by what they interpret as American weakness and faltering willpower, will they keep pushing forward? Will the president's outreach to the moderate majority of Muslims around the world open an era of better understanding, or will the violent minority launch new attacks that undercut the president's standing at home? Will the president's inability to deliver all the Israeli concessions Arabs would like erode his credibility and contribute to even deeper levels of cynicism and alienation across the Middle East? Can the president execute an orderly reduction in the U.S. military stake in Iraq and Afghanistan without having hostile forces fill the power vacuum? Will Venezuelan leader Hugo Chávez be so impressed with American restraint under Obama that he moderates his own course and ceases to make anti Yanquismo a pillar of his domestic and international policy? Will other countries heed the president's call to assume more international responsibility as the United States reduces its commitments -- or will they fail to fulfill their obligations as stakeholders in the international system?

A Jeffersonian policy of restraint and withdrawal requires cooperation from many other countries, but the prospect of a lower American profile may make others less, rather than more, willing to help the United States.

There is an additional political problem for this president, one that he shares with Carter. In both cases, their basic Jeffersonian approach was balanced in part by a strong attraction to idealistic Wilsonian values and their position at the head of a Democratic Party with a distinct Wilsonian streak. A pure Jeffersonian wants to conserve the shining exceptionalism of the American democratic experience and believes that American values are rooted in U.S. history and culture and are therefore not easily exportable.

For this president, that is too narrow a view. Like Abraham Lincoln, Woodrow Wilson, and Martin Luther King Jr., Barack Obama doesn't just love the United States for what it is. He loves what it should -- and can -- be. Leadership is not the art of preserving a largely achieved democratic project; governing is the art of pushing the United States farther down the road toward the still-distant goal of fulfilling its mission and destiny.

Obama may well believe what he said in his inaugural speech -- "we reject as false the choice between our safety and our ideals" -- but as any president must he is already making exactly those tradeoffs. Why else refuse to meet the Dalai Lama? Why else pledge support to the corrupt regime of President Hamid Karzai in Afghanistan or aid Pakistan despite the dismal track record of both the civil and military arms of the Pakistani government when it comes to transparent use of U.S. resources? Did the administration not renew its efforts to build a relationship with the regime in Tehran even as peaceful democratic protesters were being tortured and raped in its jails? Is Obama not taking "incentives" to Khartoum, a regime that has for more than a decade pursued a policy in Darfur that the U.S. government has labeled genocidal?

It is hard to reconcile the transcendent Wilsonian vision of America's future with a foreign policy based on dirty compromises with nasty regimes. If the government should use its power and resources to help the poor and the victims of injustice at home, shouldn't it do something when people overseas face extreme injustice and extreme peril? The Obama administration cannot easily abandon a human rights agenda abroad. The contradiction between the sober and limited realism of the Jeffersonian worldview and the expansive, transformative Wilsonian agenda is likely to haunt this administration as it haunted Carter's, most fatefully when he rejected calls to let the shah of Iran launch a brutal crackdown to remain in power. Already the Wilsonians in Obama's camp are muttering darkly about his failure to swiftly close the Guantánamo prison camp, his fondness for government secrecy, his halfhearted support for investigating abuses of the past administration, and his failure to push harder for a cap-and-trade bill before the Copenhagen summit.

Over time, these rumblings of discontent will grow, and history will continue to throw curveballs at him. Can this president live with himself if he fails to prevent a new round of genocide in the Great Lakes region of Africa? Can he wage humanitarian war if all else fails? Can he make these tough decisions quickly and confidently when his closest advisors and his political base are deeply and hopelessly at odds?

The Jeffersonian concern with managing America's foreign policy at the lowest possible level of risk has in the past helped presidents develop effective grand strategies, such as George Kennan's early Cold War idea of containment and the early 19th-century Monroe Doctrine. If successful, Obama's restructuring of American foreign policy would be as influential as these classic strategic designs.

Recent decades, however, have seen diminishing Jeffersonian influence in U.S. foreign policy. Americans today perceive problems all over the world; the Jeffersonian response often strikes people as too passive. Kennan's modest form of containment quickly lost ground to Dean Acheson's more muscular and militarized approach of responding to Soviet pressure by building up U.S. and allied forces in Europe and Asia. The Nixon-Kissinger policy of détente was repudiated by both the Republican and Democratic parties. Carter came into the White House hoping to end the Cold War, but by the end of his tenure he was supporting the resistance to the Soviet occupation of Afghanistan, increasing the defense budget, and laying the groundwork for an expanded U.S. presence in the Middle East.

In the 21st century, American presidents have a new set of questions to consider. The nature of the international system and the place of the United States in it will have to be rethought as new powers rise, old ones continue to fade, and attention shifts from the Atlantic to the Pacific. The rapid technological development that is the hallmark of our era will reshape global society at a pace that challenges the ability of every country in the world to manage cascading, accelerating change.

With great dignity and courage, Obama has embarked on a difficult and uncertain journey. The odds, I fear, are not in his favor, and it is not yet clear that his intuitions and instincts amount to the kind of grand design that statesmen like John Quincy Adams and Henry Kissinger produced in the past. But there can be no doubt that American foreign policy requires major rethinking.

At their best, Jeffersonians provide a necessary element of caution and restraint in U.S. foreign policy, preventing what historian Paul Kennedy calls "imperial overstretch" by ensuring that America's ends are proportionate to its means. We need this vision today more than ever: If Obama's foreign policy collapses -- whether sunk by Afghanistan or conflicts not yet foreseen -- into the incoherence and reversals that ultimately marked Carter's well-meaning but flawed approach, it will be even more difficult for future presidents to chart a prudent and cautious course through the rough seas ahead.

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Sep 21, 2009

Bakrie eyes presidency - Straits Times

GolkarImage via Wikipedia

JAKARTA - INDONESIAN tycoon Aburizal Bakrie, who wants to run for president in 2014, believes that better infrastructure is more likely to attract foreign investors to South-east Asia's biggest economy than fighting corruption.

Mr Bakrie, who is chief social minister in President Susilo Bambang Yudhoyono's government, is a member of the Golkar Party, the political machine which dominated parliament for decades under former President Suharto but which has lost much of its support in Indonesia's post-Suharto democracy.

Mr Bakrie, whose family controls coal-miner Bumi Resources, plantations, property, and telecoms firms, is regarded as a holdover from the Suharto era.

He is an opponent of Ms Sri Mulyani Indrawati, the finance minister and coordinating economic minister who has promoted reform and the fight against graft.

Mr Bakrie also owns infrastructure businesses such as toll roads.

'What they (investors) want is infrastructure,' followed by less red tape and more transparency, Mr Bakrie said in an interview with Reuters on Monday.

'During the Suharto era, total investment per year was much more than now, and at that time the corruption was a lot compared to now, yet they (foreigners) invested.'
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Sep 15, 2009

'You Lie!' Shout Brings Vote on Sanction - washingtonpost.com

Rock Hill, South CarolinaImage via Wikipedia

Racial Issue Simmers as Black Democrats Lead Push Against Wilson

By Paul Kane
Washington Post Staff Writer
Tuesday, September 15, 2009

House Democrats plan to formally reprimand Rep. Joe Wilson (R-S.C.) on Tuesday for his outburst last week in which he accused President Obama of lying about proposed health-care legislation.

The vote on punishment will resolve the issue in the House, but behind the incident some see a broader question: Is racism a factor in the way the president is being judged?

With two simple words -- "You lie!" -- shouted during Obama's speech to Congress, Wilson helped escalate an issue that has been on a slow burn for weeks, especially among African Americans. Many watched the rancor at last month's town hall meetings with suspicion that the intense anger among some participants -- including signs calling for Obama's death and a movement questioning his citizenship -- was fueled by the fact that a black man sits in the Oval Office.

Led by their most senior black lawmakers, House Democrats decided Monday evening to hold the vote. The decision risks escalating the partisan warfare that has erupted since Wilson's outburst.

A vote would reverse the initial sentiment voiced by the president and House Speaker Nancy Pelosi (D-Calif.) that it was time to "move on" to the debate on health-care. But the White House and Pelosi yielded to senior black Democrats, led by House Majority Whip James E. Clyburn (D-S.C.), and other members of the leadership team, who argued that Wilson's remark was a breach of conduct that must not be tolerated.

Clyburn has said behind closed doors that many black voters saw Wilson's actions as part of the heated rhetoric from conservative activists whose protests, including one on the Capitol grounds Saturday, have included depictions of Obama as Adolf Hitler and the comic-book villain the Joker, according to those attending the meetings. It was one thing to have such remarks at town hall meetings during the summer recess but completely different during a presidential address to a joint session of Congress, Clyburn and other black Democrats argued, and Democrats needed to stand up for the nation's first black president.

Clyburn has not publicly called Wilson's remark racist, but he told reporters immediately after the speech that Obama is the only president to have been treated in such a manner.

Some black lawmakers were more direct.

Rep. David Scott (D-Ga.), who received hate mail from constituents during Congress's August break, said Wilson had just returned from the rowdy town hall forums at which the most heated accusations were leveled at Obama.

"I think he was caught up in a moment. The issue is: Would he have done that if the president were white?" Scott said, adding that few Republicans opposed the "level of rhetoric" against Obama in August. "We've got to realize racism is playing a role here. I'm hopeful that this will be a wake-up call for us to get it off the table."

Democrats emphasized that it was not just members of the Congressional Black Caucus seeking to reprimand Wilson, and that a broad cross section of Democrats supported the measure, including Majority Leader Steny H. Hoyer (D-Md.). Hoyer had argued publicly that Wilson had to make a formal apology from the well of the House chamber or face some sanction.

But Wilson has refused to offer any apology beyond the private phone call he made Wednesday night to White House Chief of Staff Rahm Emanuel. In a show of defiance Monday, the lawmaker was the first Republican to speak when the chamber opened for a round of brief speeches. Rather than apologizing, Wilson hailed the "patriots" who attended his August town hall forums and opposed a "government takeover" of the health-care system.

Republican leaders rejected the accusation that there was any racial tinge in Wilson's comments and instead accused Democrats of using the issue to play to their base of liberal activists, who have funneled more than $1 million in contributions to Wilson's likely opponent next year.

"Representative Wilson has apologized to the president, and the president accepted his apology," said House Minority Leader John A. Boehner (R-Ohio). "Last Thursday, Speaker Pelosi said that she believed it was time to move on and discuss health care. I couldn't agree more."

Senior aides in both parties expect the resolution to pass largely along party lines. The vote will officially be on what the House calls a "resolution of disapproval," the mildest form of punishment. Democrats cite rules of debate that prohibit lawmakers from "unnecessarily and unduly exciting animosity among its members or antagonism from those other branches of the government."

Republicans said Monday that they are not likely to offer an alternative resolution and that instead they want their members to focus on the content of the health-care proposal, as Wilson did in his brief remarks. But some Republicans came to Wilson's defense, accusing Obama and Pelosi of going back on their statements to move about moving beyond the controversy.

"What's it called when somebody says something they're going to do, and then they don't do it? What is that statement?" Rep. Louie Gohmert (R-Tex.) asked in a floor speech.

After Obama's speech, the initial "macro view" among top Democrats was that he had finally broken through the noise of the town hall meetings and the alleged distortions of the legislation, according to one senior aide who discussed internal deliberations on the condition of anonymity. Democrats, the aide said, did not want to get distracted from the policy debate, as they had earlier in the summer after Obama's prime-time news conference on health care ended with his controversial comments that police had acted "stupidly" in deciding to arrest Henry Louis Gates Jr., a black Harvard professor, outside his home after police responded to a call about a possible intruder.

"It's time for us to talk about health care and not Mr. Wilson," Pelosi told reporters Thursday morning, echoing a similar statement from Obama, who suggested that "we all make mistakes."

But that morning several members of the black caucus stood up at a gathering of House Democrats to argue that Obama was being treated differently than any president, according to those in attendance. They argued that the image of a white Southerner calling the nation's first black president a liar on television on the House floor could not stand with a private apology.

During a series of roll-call votes Thursday, Clyburn implored his fellow South Carolinian to make a formal apology, as did Boehner and other Republican leaders, who had initially rejected Wilson's comment to Obama as inappropriate. But Wilson rejected the entreaties.

Clyburn, the highest-ranking black lawmaker in Congress, took the position in a leadership meeting Thursday afternoon that Wilson had to be punished, according to a handful of those in attendance.

Clyburn has served as a leader on racial matters. During last year's hard-fought Democratic presidential primary contest, he criticized former president Bill Clinton when he thought his comments about Obama's victory over his wife, then-Sen. Hillary Rodham Clinton, in the critical South Carolina primary were racially disparaging toward Obama.

Rep. Gregory W. Meeks (D-N.Y.), another black lawmaker, said the action was warranted not "because he's the first black president" but because Wilson broke the rules. But Meeks said that Wilson's charge was borne of that sentiment from the town hall anger. "You've never seen those kinds of signs and that kind of language used before," Meeks said. "You didn't see that same kind of language with past presidents."

But some Congressional Black Caucus members were hesitant to give Wilson too much attention, suggesting that a reprimand plays into the Republican hands. Rep. Elijah E. Cummings (D-Md.), a past chairman of the group, said, "I don't want this to distract from what we are doing, because that's the danger."

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Jul 3, 2009

Barack Hoover Obama: The Best and the Brightest Blow It Again

By Kevin Baker

Three months into his presidency, Barack Obama has proven to be every bit as charismatic and intelligent as his most ardent supporters could have hoped. At home or abroad, he invariably appears to be the only adult in the room, the first American president in at least forty years to convey any gravitas. Even the most liberal of voters are finding it hard to believe they managed to elect this man to be their president.

It is impossible not to wish desperately for his success as he tries to grapple with all that confronts him: a worldwide depression, catastrophic climate change, an unjust and inadequate health-care system, wars in Afghanistan and Iraq, the ongoing disgrace of Guant·namo, a floundering education system.

Obama’s failure would be unthinkable. And yet the best indications now are that he will fail, because he will be unable—indeed he will refuse—to seize the radical moment at hand.

Every instinct the president has honed, every voice he hears in Washington, every inclination of our political culture urges incrementalism, urges deliberation, if any significant change is to be brought about. The trouble is that we are at one of those rare moments in history when the radical becomes pragmatic, when deliberation and compromise foster disaster. The question is not what can be done but what must be done.

We have confronted such emergencies only a few times before in the history of the Republic: during the secession crisis of 1860–61, at the start of World War II, at the outset of the Cold War and the nuclear age. Probably the moment most comparable to the present was the start of the Great Depression, and for the scope and the quantity of the problems he is facing, Obama has frequently been compared with Franklin Roosevelt. So far, though, he most resembles the other president who had to confront that crisis, Herbert Hoover.

The comparison is not meant to be flippant. It has nothing to do with the received image of Hoover, the dour, round-collared, gerbil-cheeked technocrat who looked on with indifference while the country went to pieces. To understand how dire our situation is now it is necessary to remember that when he was elected president in 1928, Herbert Hoover was widely considered the most capable public figure in the country. Hoover—like Obama—was almost certainly someone gifted with more intelligence, a better education, and a greater range of life experience than FDR. And Hoover, through the first three years of the Depression, was also the man who comprehended better than anyone else what was happening and what needed to be done. And yet he failed.

The story of the real Herbert Hoover reads like something out of an Indiana Jones script, with touches of Dickens and the memoirs of Albert Schweitzer. Orphaned and penniless by the age of nine, Hoover was raised by an exploitative uncle who considered him more chattel than son. He had no illusions about the America he grew up in, writing years later, “As gentle as are the memories of the times, I am not recommending a return to the good old days. Sadness was greater, and death came sooner.”

Removed from public school at fourteen to work as his uncle’s office boy, Hoover nonetheless learned enough at night school to make the very first class at the newly opened Stanford University, where he studied geology and engineering. He paid his own way by working as a waiter, a typist, and a handyman, and eventually running a laundry service, a baggage service, and a newspaper route. (Unsurprisingly, his favorite book was David Copperfield.) After graduation, he ran mining camps and scouted new strikes around the globe. It was an adventurous life; on one occasion he made a small fortune by following an ancient Chinese map and tiger tracks into a moribund silver mine in Burma. By the time he was forty, Hoover was worth $85 million in today’s dollars, and he retired from business to take up public life. “The ideal of service,” he would later write, was no burden on the striving entrepreneur but a “great spiritual force poured out by our people as never before in the history of the world.”

He had long lived up to his ideals. Caught in the siege of the Western delegations in Peking during the Boxer Rebellion of 1900, only Hoover and his fearless wife, Lou, cared enough to sneak food and water to the Chinese Christians besieged elsewhere in the city. He first came to national attention after the start of World War I, when he led the effort to feed the 7 million people of occupied Belgium and France. He worked for free, donated part of his own fortune to the cause, and risked his life repeatedly crossing the U-boat–infested waters of the North Atlantic. His postwar relief efforts rescued millions more throughout Europe and especially in the Soviet Union; it’s unlikely that any other individual in human history saved so many people from death by starvation and want. Questioned about feeding populations under Bolshevik control, he banged a table and insisted, “Twenty million people are starving. Whatever their politics, they shall be fed!” In 1920, many people in both major parties wanted to run him for president, but he opted for the Republican cabinet. As secretary of commerce under Warren Harding and Calvin Coolidge, he was a dynamic figure, tirelessly promoting new technologies, work-safety rules, and voluntary industry standards; he supervised relief to Mississippi and Louisiana during the terrible 1927 floods and advocated cooperation between labor and management.

“We had summoned a great engineer to solve our problems for us; now we sat back comfortably and confidently to watch the problems being solved,” the journalist Anne O’Hare McCormick wrote of Hoover’s inauguration in March 1929, in words that might easily have been used in January 2009. “Almost with the air of giving genius its chance, we waited for the performance to begin.”

Genius got its chance less than eight months after Hoover was sworn in, when the stock market collapsed. At the time, such an event wasn’t seen as having anything much to do with the president. Wall Street crashes happened every five to ten years in the old American economy, and it was understood that these crashes would sometimes start nationwide recessions. They might last a year or two, like the recession that started in 1920, or for much longer, like the devastating depression that began in 1873 and, according to some economists, didn’t really end until 1897. How long would it take to recover from the crash of ‘29? Who could know? Mere politicians were supposed to leave the outcome to the workings of the market. But Hoover—much like Obama—plunged right in, with a response that was designed to rise above old ideological battles and effect a new partnership between the public and private sectors. Less than a month after the Wall Street crash, he began what would be weeks of meetings at the White House with hundreds of “key men” from the business world. There the president briefed them on everything he had done so far and urged them to cut as few jobs as possible for the duration of the slump. He also encouraged public and private construction projects, signed bills recognizing the right of unions to organize, and used the fledgling Federal Reserve both to ease credit and to discourage banks from calling in their stock-market loans.

All of these projects were anathema to old-line conservatives in Hoover’s own party, such as Andrew Mellon, the tax-slashing secretary of the treasury throughout the go-go years of the 1920s boom, who offered the president the absurdist advice to let the market “liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.” Cutting one of the main ties to the trickle-down wisdom of what was suddenly a previous era, Hoover eventually shipped Mellon off to serve as ambassador to England.

Yet there remained little immediate action that the president could take, hobbled as he was by the limits of a federal government that made up less than 4 percent of the GDP and by the reluctance of those around him to interfere in any way with the sanctity of the markets. At what John Kenneth Galbraith would later skewer as “no-business” meetings, the key men of industry pledged their full support, then went home to slash wages and cut as many jobs as they could. By the end of 1930, the gross national product had dropped by nearly 13 percent, unemployment had shot up to nearly 9 percent, and over 600 banks had closed. The Democrats won a majority in the House of Representatives, but the primary response to the Depression offered by their laconic speaker, “Cactus Jack” Garner, was a national sales tax designed to balance the budget. Liberal legislators in both parties were more sympathetic, but they wielded little power.

As the Depression spread around the world, Hoover—like Obama—towered above the squabbling, suspicious leaders of Europe as well. Only Hoover, who had lived all around the world (like Obama) and also been part of the U.S. delegation at Versailles, seemed to understand the true threat the Depression posed to the global economy. Democratic forms of government were under assault everywhere in the West, and especially in the Weimar Republic, still staggering under the indemnity the victorious Allies had imposed on Germany in 1919. Hoover sought to alleviate the growing world credit crunch by pushing through a moratorium on the repayment of Europe’s considerable war debt to the United States—on the condition that the Allies also forgave Germany its indemnity. It was an example of statesmanship at its most enlightened, and if any single U.S. action at the time could have prevented the rise of the Nazis to power, this would have been it.

Back on the domestic front, Hoover tried to organize national, voluntary efforts to hire the unemployed, provide charity, and create a private banking pool. When these efforts collapsed or fell short, he started a dozen Home Loan Discount Banks to help individuals refinance their mortgages and save their homes, and created an unprecedented government entity called the Reconstruction Finance Corporation. Authorized to spend up to the then-astonishing sum of $2 billion, the RFC was a direct rebuttal to Andrew Mellon’s prescription of creative destruction. Rather than liquidating banks, railroads, and agricultural cooperatives, the RFC would lend them money to stay afloat.

Hoover, as the historian David M. Kennedy writes, had shown “himself capable of the most pragmatic, far-reaching, economic heterodoxy,” a trait that “would in the end carry him and the country into uncharted economic and political territory.” New Dealer Rexford Tugwell would, many years later, claim that “practically the whole New Deal was extrapolated from programs that Hoover started.” Indeed, “Hoover had wanted—and had said clearly enough that he wanted—nearly all the changes now brought under the New Deal label.”

Tugwell’s appraisal, though considerably exaggerated, nonetheless testifies to the boldness of Hoover’s program. The only problem was that it did not work. The nation’s credit system still would not thaw, banks kept falling like dominoes, unemployment rates and human suffering continued to rise. For all of his willingness to break with precedent and intervene directly in the economy, Hoover remained unable to turn his back fully on what Kennedy describes as the prevailing “legacy of perception and understanding of economic theory.”

As Europe faltered, for instance, foreign gold began to flow out of America’s banks and back home. Hoover reacted by increasing interest rates and raising taxes, in an effort to further deflate the economy, balance the federal budget, and thereby lure the gold back. This was the textbook economic response of the time to fleeing gold reserves; in the midst of the Great Depression, it was a disaster.

Meanwhile, the RFC was derided by populist critics as “bank relief” and “a millionaire’s dole”—criticisms echoed today by all those who see George W. Bush’s Troubled Asset Relief Program and Obama’s own Public-Private Investment Program as outrageous giveaways. And, as Kennedy points out, once Hoover had set in motion the great bank bailout of 1931, he “had given up the ground of high principle” and “implicitly legitimated the claims of other sectors for federal assistance.” Critics raised the same criticisms they would raise about Obama’s bailout plans seventy-eight years later. If the banks get a bailout, why not everyone else? Were bailouts only for the rich?

Exacerbating the entire situation was the RFC itself. Hoover’s leading weapon to combat the Depression performed with TARP-like languor, secrecy, and nepotism. Throughout 1932, as banks continued to topple by the hundreds, the RFC disbursed only three-quarters of its available money. Although Hoover had declared that the agency was “not created for the aid of big industries or big banks,” a record of its operations revealed that most of its money had indeed gone to a very few of the country’s biggest financial institutions. In June of 1932, the RFC’s president, Charles G. Dawes—who had just served as vice president of the United States under Calvin Coolidge—resigned his post, took a new job as head of the Central Republic Bank in Chicago, and promptly secured for his employer an RFC loan that nearly equaled the bank’s total deposits. Dawes’s successor, Atlee Pomerene, then lent another $12 million to a Cleveland bank of which he remained a director.

These facts were, in the end, wrestled out in the open only by congressional fiat. The recipients of some $642 million of the RFC’s loans—nearly half its total expenditures—were not revealed at all. Hoover, like Obama, had insisted on secrecy to keep the proceedings from being “politicized,” but, inevitably, this fear of politicization in the end only led to more politics. The writer John T. Flynn, who reported much of the RFC scandal in the pages of this magazine, found that most of the money was distributed “by a group of directors drawn from those business groups whose performances during the pre-crash years have rendered them objects of suspicion to the American people” and that the “immense sums they dispensed were given to borrowers, many of whom, to put it mildly, have forfeited, justly or unjustly, the confidence of the people.”

The RFC’s deliberations were understood—with good reason—not as effective management but as insider dealing: common financial practice through the 1920s, but politically and morally insupportable at a time when millions of Americans were losing their jobs, their homes, and their savings, and when some were literally dying of starvation. What’s more, even the loans that were made proved less than effective. The rescued banks, much like the rescued banks today, simply hoarded the new capital and refused to venture out into the marketplace.

Neither the RFC nor any of Hoover’s other programs did anything to seriously address the other major problems then plaguing the American economy: the decades-long farm crisis that was sweeping away Dust Bowl farmers’ actual soil along with their holdings; the near annihilation of the labor movement; a wildly unequal distribution of wealth; the lack of any real safety net for the old, the indigent, and the unemployable; a corrupt, non-transparent financial system that remained largely unregulated—in short, the need for systematic, wholesale reform of a nation that had foundered on the changing circumstances of the modern world.

It would have been very difficult to make most of these changes, because by and large they were advocated only by what were then the most radical individuals on the fringes of the political system. The one thing to be said in favor of such changes was that they were absolutely necessary.

By the summer of 1932, the country was in a state of near rebellion, with the “Bonus Army” of angry veterans camped out in Washington, farmers dumping their produce on the highways in protest, and mobs forcibly stopping evictions in the cities. The liberals in Congress had moved at last beyond Hoover, with even Jack Garner backing a $2.1-billion package of public works and direct relief. Hoover vetoed it, warning against the moral entrapments of “the dole.”

Why was Herbert Hoover so reluctant to make the radical changes that were so clearly needed? It could not have been a question of competence or compassion for this lifelong Quaker, who had rushed sustenance to starving people around the world regardless of their nationalities or beliefs. Ultimately, Hoover could not break with the prevailing beliefs of his day. The essence of the Progressive Era in which he had come of age—the very essence of his own public image—was that government was a science. It was not a coincidence that this era brought us the very term “political science,” along with the advent of “nonpartisan” elections and “city managers” to replace mayors.

Since the 1890s, Hoover and his contemporaries had promoted this brand of progressivism as an alternative not only to the political and corporate corruption of the Gilded Age but also to the furious class and regional warfare that progressivism’s predecessor, populism, seemed to promise. Progressivism aspired to be something of a political science itself, untrammeled by ideological or partisan influence: there was a right way and a wrong way to do things, and all unselfish and uncorrupted individuals could be counted on to do the right thing, once they were shown what that was.

There were plenty of progressives, led by Teddy Roosevelt, who understood that bringing real change meant fighting to bust up trusts, regain public ownership of utilities, and secure rights for labor, women, and others. But the great national effort inspired by World War I softened memories of the bitter class conflict that had characterized much of American politics since the Civil War, just as the rollicking prosperity of the 1920s erased memories of the postwar Red Scare and the crushing of labor unions. Throughout the decade, big business sought to co-opt any lingering labor resentments by forming “company unions” under what they called “the American Plan.” Volunteerism and boosterism would take care of the rest. Prosperity would come through an always rising stock market.

Hoover’s every decision in fighting the Great Depression mirrored the sentiments of 1920s “business progressivism,” even as he understood intellectually that something more was required. Farsighted as he was compared with almost everyone else in public life, believing as much as he did in activist government, he still could not convince himself to take the next step and accept that the basic economic tenets he had believed in all his life were discredited; that something wholly new was required.

Such a transformation would have required a mental suppleness that was simply not in the makeup of this fabulously successful scientist and self-made businessman. And it was this inability to radically alter his thinking that, ultimately, distinguished Hoover from Franklin Roosevelt. FDR was by no means the rigorous thinker that Hoover was, and many observers then and since have accused him of having no fixed principles whatsoever. And yet it was Roosevelt, the Great Improviser, who was able to patch and borrow and fudge his way to solutions not only to the Depression but also to sustained prosperity and democracy. It was FDR, brought up with the entitled, patronizing worldview of a Hudson Valley aristocrat, who was able to overcome attachments to all classes, all theories. It was Roosevelt who understood the imperfections, the rough-and-tumble of politics. The programs of the First and Second New Deals were a hodgepodge of ideologies—which is precisely why they worked. The innovations they brought about, however sloppily, were the core of twentieth-century American liberalism in that they reflected the complex ever-changing realities of the modern world.

Originally, Roosevelt, too, endorsed much of the progressive vision—or at least its pale 1920s imitation—as evidenced by his National Recovery Administration, a flabby utopian plan that would have had business, labor, and government collaborate to set prices, wages, and industry standards down to the most minute details. The NRA would have carried 1920s-style business progressivism right to the doorstep of the corporate state, had it been even vaguely workable. But right from the beginning, Roosevelt also endorsed reforms, from regulating Wall Street to saving the farmers to backing labor unions in their organizing wars, that required _conflict—_the only way in which a political and economic system can be fundamentally remade. When the NRA quickly proved to be a bust, FDR discarded it, and replaced his failure with the Second New Deal, in which business, labor, and government were situated as countervailing forces against one another—a fundamental power shift that enabled advances in both prosperity and democracy unmatched in human history.

Much like Herbert Hoover, Barack Obama is a man attempting to realize a stirring new vision of his society without cutting himself free from the dogmas of the past—without accepting the inevitable conflict. Like Hoover, he is bound to fail.

President Obama, to be fair, seems to be even more alone than Hoover was in facing the emergency at hand. The most appalling aspect of the present crisis has been the utter fecklessness of the American elite in failing to confront it. From both the private and public sectors, across the entire political spectrum, the lack of both will and new ideas has been stunning. When it came to the opposition, Franklin Roosevelt reaped the creative support of any number of progressive Republicans throughout his twelve years in office, ranging from New York Mayor Fiorello La Guardia to Nebraska Senator George Norris to key cabinet members such as Henry A. Wallace, Harold Ickes, Henry Stimson, and Frank Knox. Obama, by contrast, has had to contend with a knee-jerk rejectionist Republican Party.

More frustrating has been the torpor among Obama’s fellow Democrats. One might have assumed that the adrenaline rush of regaining power after decades of conservative hegemony, not to mention relief at surviving the depredations of the Bush years, or losing the vestigial tail of the white Southern branch of the party, would have liberated congressional Democrats to loose a burst of pent-up, imaginative liberal initiatives.

Instead, we have seen a parade of aged satraps from vast, windy places stepping forward to tell us what is off the table. Every week, there is another Max Baucus of Montana, another Kent Conrad of North Dakota, another Ben Nelson of Nebraska, huffing and puffing and harrumphing that we had better forget about single-payer health care, a carbon tax, nationalizing the banks, funding for mass transit, closing tax loopholes for the rich. These are men with tiny constituencies who sat for decades in the Senate without doing or saying anything of note, who acquiesced shamelessly to the worst abuses of the Bush Administration and who come forward now to chide the president for not concentrating enough on reducing the budget deficit, or for “trying to do too much,” as if he were as old and as indolent as they are.

Senate Majority Leader Harry Reid—yet another small gray man from a great big space where the tumbleweeds blow—seems unwilling to make even a symbolic effort at party discipline. Within days of President Obama’s announcing his legislative agenda, the perpetually callow Indiana Senator Evan Bayh came forward to announce the formation of a breakaway caucus of fifteen “moderate” Democrats from the Midwest who sought to help the country make “the changes we need” but “make sure that they’re done in a practical way that will actually work”—a statement that was almost Zen-like in its perfect vacuousness. Even most of the Senate’s more enlightened notables, such as Russ Feingold of Wisconsin or Claire McCaskill of Missouri or Sherrod Brown of Ohio, have had little to contribute beyond some hand-wringing whenever the idea of a carbon tax or any other restrictions on burning coal are proposed.

President Obama, with a laudable respect for the separation of powers, has left the details and even the main tenets of his agenda to be worked out by these same congressional Democrats. This approach looks like an exercise in democracy drawn from his days as a community organizer, the sort of strategy that helps a neighborhood to decide whether it wants, say, a health clinic or a youth center. What he doesn’t care to acknowledge is that, in the case of the U.S. Congress, he’s dealing with a neighborhood where maybe half want a health clinic and the rest are holding out for grenade launchers and crystal meth.

Some have suggested that this is a subtle strategy to ensure that the White House retains the whip hand, that Obama is reserving for himself the role of “decider” over competing plans. But what is the decision then? Half a health clinic and one grenade launcher? A plan for universal health care that is not universal and doesn’t cut costs will not work. A plan for combating climate change that perpetuates the shibboleth of “clean coal” will do nothing. Far from controlling the process, Obama’s procedure is more likely to commit him to one of Congress’s nebulous non-plans.

Yet Obama’s lack of direction, his lack of accomplishments in his Hundred Days and counting, cannot be attributed solely to his illusions about the august body he just vacated. Obama, like Hoover in his time, is almost alone among politicians in grasping the magnitude of the crisis. In his masterful February speech before the joint houses of Congress, Obama explained to the country why we cannot afford to continue with a tottering health-care system that has left 46 million Americans uninsured and that impedes our exports by adding, for instance, $1,500 to the cost of every GM car; why it is that climate change has to be addressed now, and how by addressing it we can regain our industrial base and actually begin to make things again; why it is that our financial system could not simply be bailed out and patched up but must be fundamentally reformed and re-regulated. Above all, he explained the necessary interaction of all these reforms, of how they were not just some liberal wish list but the actions that the radical moment demanded.

Speeches almost as powerful have followed, always linking these ideas together. But, like Hoover, Obama has been unable to make his actions live up to his words. Health care is being gummed to death on Capitol Hill. Obama has done nothing to pass “card check” provisions that would facilitate union organization and quietly announced that he would not seek stronger labor and environmental protections in NAFTA. He has capitulated on cap-and-trade in the budget outline and never even bothered to push for an actual carbon tax. Only minuscule portions of the stimulus bill or his budget proposals were dedicated to mass transit, and his indifference to the issue—what must be a major component of any serious effort to go green—was reflected in his appointment of a mediocre Republican time-server, Ray LaHood, as his transportation secretary.

Still worse is Obama’s decision to leave the reordering of the financial world solely to Larry Summers and Timothy Geithner, both of whom played such a major role in deregulating Wall Street and bringing on the disaster in the first place. It’s as if, after winning election in 1932, FDR had brought Andrew Mellon back to the Treasury. Just as Herbert Hoover could not, in the end, break away from the best economic advice of the 1920s, Barack Obama is sticking with the “key men” of the 1990s. The predictable result is that, even as he claims to recognize the interlocking nature of the problems facing us and vows to solve them as a whole, the president is in fact abandoning most of his program, at least for the time being.

No doubt, President Obama and his chief of staff, Rahm Emanuel, would claim that by practicing “the art of the possible,” they are ensuring that “the perfect does not become the enemy of the good.” But by not even proposing the relevant legislation, Obama has ceded a key part of the process—so much so that his retreat seems not so much tactical as a reversion to his core political beliefs.

A major theme of Obama’s 2006 book The Audacity of Hope is impatience with “the smallness of our politics” and its “partisanship and acrimony.” He expresses frustration at how “the tumult of the sixties and the subsequent backlash continues to drive our political discourse,” and voices a professional appreciation for Ronald Reagan’s ability to exploit such divisions. The politician he admires the most—ironically enough, considering the campaign that was to come—is Bill Clinton. For all his faults, Clinton, in Obama’s eyes, “instinctively understood the falseness of the choices being presented to the American people” and came up with his “Third Way,” which “tapped into the pragmatic, non-ideological attitude of the majority of Americans.”

This is an analysis consistent with Obama’s personal story. Like Herbert Hoover, Obama grew up as an outsider and overcame formidable odds—hence his constant promotion of personal responsibility and education. He came of age in a time when hardworking young men and women like him went to Wall Street or to Silicon Valley, and—once properly “incentivized” by the likes of Ronald Reagan and Bill Clinton—seemed to save the national economy, creating what appeared to be great general prosperity while doing well themselves. There’s no need to do battle with these strivers and achievers, individuals as accomplished in their fields as Obama is in his. All that’s required is to get them back on their feet, get the money running again, and maybe give them a few new rules to live by, a new set of incentives to get them back on track.

Just as Herbert Hoover came to internalize the “business progressivism” of his era as a welcome alternative to the futile, counterproductive conflicts of an earlier time, so has Obama internalized what might be called Clinton’s “business liberalism” as an alternative to useless battles from another time—battles that liberals, in any case, tended to lose.

Clinton’s business liberalism, however, is a chimera, every bit as much a capitulation to powerful and selfish interests as was Hoover’s 1920s progressivism. We are back in Evan Bayh territory here, espousing a “pragmatism” that is not really pragmatism at all, just surrender to the usual corporate interests. The common thread running through all of Obama’s major proposals right now is that they are labyrinthine solutions designed mainly to avoid conflict. The bank bailout, cap-and-trade on carbon emissions, health-care pools—all of these ideas are, like Hillary Clinton’s ill-fated 1993 health plan, simultaneously too complicated to draw a constituency and too threatening for Congress to shape and pass as Obama would like. They bear the seeds of their own defeat.

Obama will have to directly attack the fortified bastions of the newest “new class”—the makers of the paper economy in which he came of age—if he is to accomplish anything. These interests did not spend fifty years shipping the greatest industrial economy in the history of the world overseas only to be challenged by a newly empowered, green-economy working class. They did not spend much of the past two decades gobbling up previously public sectors such as health care, education, and transportation only to have to compete with a reinvigorated public sector. They mean, even now, to use the bailout to make the government their helpless junior partner, and if they can they will devour every federal dollar available to recoup their own losses, and thereby preclude the use of any monies for the rest of Barack Obama’s splendid vision.

Franklin Roosevelt also took office imagining that he could bring all classes of Americans together in some big, mushy, cooperative scheme. Quickly disabused of this notion, he threw himself into the bumptious give-and-take of practical politics; lying, deceiving, manipulating, arraying one group after another on his side—a transit encapsulated by how, at the end of his first term, his outraged opponents were calling him a “traitor to his class” and he was gleefully inveighing against “economic royalists” and announcing, “They are unanimous in their hatred for me—and I welcome their hatred.”

Obama should not deceive himself into thinking that such interest-group politics can be banished any more than can the cycles of Wall Street. It is not too late for him to change direction and seize the radical moment at hand. But for the moment, just like another very good man, Barack Obama is moving prudently, carefully, reasonably toward disaster.