Obama Moves to Centralize Control Over Party Strategy

January 24, 2010

By JEFF ZELENY and PETER BAKER

WASHINGTON — President Obama is reconstituting the team that helped him win the White House to counter Republican challenges in the midterm elections and recalibrate after political setbacks that have narrowed his legislative ambitions.

David Plouffe, who ran the Obama campaign, has been asked to play a bigger role.

Mr. Obama has asked his former campaign manager, David Plouffe, to oversee House, Senate and governor’s races to stave off a hemorrhage of seats in the fall. The president ordered a review of the Democratic political operation — from the White House to party committees — after last week’s Republican victory in the Massachusetts Senate race, aides said.
In addition to Mr. Plouffe, who will primarily work from the Democratic National Committee in consultation with the White House, several top operatives from the Obama campaign will be dispatched across the country to advise major races as part of the president’s attempt to take greater control over the midterm elections, aides said.
“We are turning the corner to a much more political season,” said David Axelrod, a senior adviser, who confirmed Mr. Plouffe’s role. “We are going to evaluate what we need to do to get timely intelligence and early warnings so we don’t face situations like we did in Massachusetts.”
As Mr. Obama prepares to deliver his State of the Union address on Wednesday and lay out his initiatives for the second year of his presidency, his decision to take greater control of the party’s politics signals a new approach. The White House is searching for ways to respond to panic among Democrats over the possible demise of his health care bill and a political landscape being reshaped by a wave of populism.
Improving tactical operations addresses only part of his challenge. A more complicated discussion under way, advisers said, is how to sharpen the president’s message and leadership style.
The reinforcement of the White House’s political operation has been undertaken with a sense of urgency since Tuesday, when a Republican, Scott Brown, won the Massachusetts Senate seat that had been held by Edward M. Kennedy. The White House was caught off guard when it became clear that Democrats were in danger of losing it, and by the time alarm bells sounded from the Democratic Senatorial Campaign Committee, it was too late.
The president summoned Mr. Plouffe to the Oval Office hours before the polls closed and asked him to assume the new role because of the implications the midterm elections hold. Mr. Plouffe built a reputation in 2008 as a master of the nuts and bolts of campaigns, and will assemble a team to provide unfiltered information that serves as an early-warning system so the White House and party officials know if a candidate is falling behind.
The day-to-day political operation will be run by Jim Messina, a deputy White House chief of staff, but Mr. Plouffe will coordinate the effort.
The party is trying to become less reliant on polls conducted by candidates, which can often paint a too-rosy picture of the political outlook. The president’s leading pollster, Joel Benenson, will be among those conducting research for Mr. Plouffe, aides said, along with others who will divide the country by regions.
Mr. Plouffe, who did not follow Mr. Obama to the White House last year, has remained in the president’s tight circle of advisers and has frequently worked on projects for the party.
The first indication of Mr. Plouffe’s more prominent role came in an op-ed article he wrote for the Sunday issue of The Washington Post, presenting a blueprint for how Democrats could avoid big defeats in the fall. He acknowledged the challenges ahead, saying, “We may not have perfect results, but November will be nothing like the nightmare that talking heads have forecast.”
Senator Robert Menendez of New Jersey, chairman of the Democratic Senatorial Campaign Committee, said he had “no interest in sugarcoating” the defeat in Massachusetts. Several party leaders said they expected Mr. Menendez to remain in his position for the rest of the election cycle, but the move by the White House had the effect of subverting at least some of the committee’s authority.
“Our own political operation will be more rigorously in communication with the other elements, so we can compare notes,” Mr. Axelrod said. “What we learned from Massachusetts is that we need to be more assiduous about getting our own data and our own information so we have a better sense of where things stand.”
The White House intends to send Mr. Obama out into the country considerably more in 2010 than during his first year in office, advisers said, to try to rekindle the relationship he developed with voters during his presidential campaign.
His first big chance will come when he delivers his State of the Union address. Rather than unveil a laundry list of new initiatives, advisers said, Mr. Obama will try to reframe his agenda and how he connects it with public concerns. In particular, he will focus on how his ideas for health care, energy and financial regulation all fit into the broader economic mission of creating what he calls a “new foundation” for the country, the key words being “rescue, restore and rebuild.”
While presidents typically experience rough patches, this one is particularly challenging for Mr. Obama. Liberals have grown disenchanted with what they see as his unwillingness to fight harder for their causes; independents have been turned off by his failure, in their view, to change the way Washington works; and Republicans have become implacably hostile.
The long and messy legislative fight over health care is a leading example of how Mr. Obama has failed to connect with voters, advisers say, because he appeared to do whatever it would take to get a bill rather than explain how people could benefit.
“The process often overwhelmed the substance,” said Dan Pfeiffer, the White House communications director. “We need to find ways to try to rise above the maneuvering.”
The discussion inside the White House includes at least two distinct debates: Should Mr. Obama assume a more populist or centrist theme in his message? And should the White House do what it takes to pass compromise legislation or should it force votes, which even if unsuccessful can be used to carry an argument against Republicans in the fall?
It remains an open question how much new legislation will pass Congress, but the coming months will help frame the campaigns. While some form of financial regulation and job creation measures may pass, Obama aides said, larger initiatives like health care, a cap on carbon emissions and an immigration overhaul may have to wait, even though the White House denies trimming its ambitions.
“I wouldn’t say the door is shut on trying to find some places where you can develop a strategy for a bipartisan vote in the Senate,” said John D. Podesta, a former White House chief of staff under President Bill Clinton who advises the Obama team.
But he said Republicans appeared determined to oppose any initiative Mr. Obama offers. “They would try to deny him passing the Mother’s Day resolution,” he said.
Some veterans of the Clinton White House have advised their friends in the West Wing to take a breath and not make lasting decisions in the immediate aftermath of the election, when it might be tempting to overreact.
Rahm Emanuel, the White House chief of staff and himself a Clinton alumnus, gave a pep talk at the senior staff meeting last week. “These things go in cycles,” participants recalled him saying. “We’ve got a lot of work to do. Keep your head up and keep going.”

They Still Don’t Get It

January 23, 2010
Op-Ed Columnist
They Still Don’t Get It
By BOB HERBERT

How loud do the alarms have to get? There is an economic emergency in the country with millions upon millions of Americans riddled with fear and anxiety as they struggle with long-term joblessness, home foreclosures, personal bankruptcies and dwindling opportunities for themselves and their children.

The door is being slammed on the American dream and the politicians, including the president and his Democratic allies on Capitol Hill, seem not just helpless to deal with the crisis, but completely out of touch with the hardships that have fallen on so many.

While the nation was suffering through the worst economy since the Depression, the Democrats wasted a year squabbling like unruly toddlers over health insurance legislation. No one in his or her right mind could have believed that a workable, efficient, cost-effective system could come out of the monstrously ugly plan that finally emerged from the Senate after long months of shady alliances, disgraceful back-room deals, outlandish payoffs and abject capitulation to the insurance companies and giant pharmaceutical outfits.

The public interest? Forget about it.

With the power elite consumed with its incessant, discordant fiddling over health care, the economic plight of ordinary Americans, from the middle class to the very poor, got pathetically short shrift. And there is no evidence, even now, that leaders of either party fully grasp the depth of the crisis, which began long before the official start of the Great Recession in December 2007.

A new study from the Brookings Institution tells us that the largest and fastest-growing population of poor people in the U.S. is in the suburbs. You don’t hear about this from the politicians who are always so anxious to tell you, in between fund-raisers and photo-ops, what a great job they’re doing. From 2000 to 2008, the number of poor people in the U.S. grew by 5.2 million, reaching nearly 40 million. That represented an increase of 15.4 percent in the poor population, which was more than twice the increase in the population as a whole during that period.

The study does not include data from 2009, when so many millions of families were just hammered by the recession. So the reality is worse than the Brookings figures would indicate.

Job losses, stagnant or reduced wages over the past decade, and the loss of home equity when the housing bubble burst have combined to take a horrendous toll on families who thought they had done all the right things and were living the dream. A great deal of that bleeding is in the suburbs. The study, compiled by the Brookings Metropolitan Policy Program, said, “Suburbs gained more than 2.5 million poor individuals, accounting for almost half of the total increase in the nation’s poor population since 2000.”

Democrats in search of clues as to why voters are unhappy may want to take a look at the report. In 2008, a startling 91.6 million people — more than 30 percent of the entire U.S. population — fell below 200 percent of the federal poverty line, which is a meager $21,834 for a family of four.

The question for Democrats is whether there is anything that will wake them up to their obligation to extend a powerful hand to ordinary Americans and help them take the government, including the Supreme Court, back from the big banks, the giant corporations and the myriad other predatory interests that put the value of a dollar high above the value of human beings.

The Democrats still hold the presidency and large majorities in both houses of Congress. The idea that they are not spending every waking hour trying to fix the broken economic system and put suffering Americans back to work is beyond pathetic. Deficit reduction is now the mantra in Washington, which means that new large-scale investments in infrastructure and other measures to ease the employment crisis and jump-start the most promising industries of the 21st century are highly unlikely.

What we’ll get instead is rhetoric. It’s cheap, so we can expect a lot of it.

Those at the bottom of the economic heap seem all but doomed in this environment. The Center for Labor Market Studies at Northeastern University in Boston put the matter in stark perspective after analyzing the employment challenges facing young people in Chicago: “Labor market conditions for 16-19 and 20-24-year-olds in the city of Chicago in 2009 are the equivalent of a Great Depression-era, especially for young black men.”

The Republican Party has abandoned any serious approach to the nation’s biggest problems, economic or otherwise. It may be resurgent, but it’s not a serious party. That leaves only the Democrats, a party that once championed working people and the poor, but has long since lost its way.

Bankers’ Sense of Entitlement

January 24, 2010
Editorial
Bankers’ Sense of Entitlement

We suspect most Americans would be baffled to realize that bankers see themselves as victims of the Obama administration’s financial policies. But there you go.

Irate at the administration’s decision to impose a fee on the largest banks, the bank lobby has hired a top lawyer to challenge the levy all the way up to the Supreme Court. Their case seems to rest on the perplexing argument that the fee would amount to a bill of attainder, which singles out a specific group of people and violates their right to due process. But the levy is aimed at a class — very large financial institutions. There are other taxes, fines and fees that operate in the same sort of way.

The push-back against the fee underscores bankers’ peculiar sense of entitlement. They feel entitled to the public support dished out by the Treasury, the F.D.I.C. and the Federal Reserve. Yet they do not believe they should be made to contribute toward the effort to save the economy from their reckless behavior.

President Obama articulated the fee as a way to recover the $117 billion cost of the direct financial bailout. It would apply to financial institutions with more than $50 billion in assets. (Bank of America, the country’s largest bank, would have to pay about $1.5 billion a year.)

Mr. Obama could have gone further. Government assistance to the banks went far beyond the Treasury’s bailout — large guarantees from the F.D.I.C., copious lending from the Federal Reserve, extremely low interest rates. And the damage caused by the banks exceeded $117 billion by an order of magnitude.

A levy on big banks’ assets could also be seen as a way to slow the further consolidation of a banking system that already has too many banks considered too big to fail. It fits the administration’s avowed interest in limiting the size of commercial banks by tightening limits on their market shares. In any case, having spent trillions to drag the economy back from the brink of the abyss, the government needs the money.

And the money is there. Goldman Sachs said last week that it would set aside 35.8 percent of last year’s revenue to pay bonuses. That is down from the 48 percent Goldman doled out for bonuses in 2008. But it adds up to an obscene $16.2 billion, more than 10 times what the proposed levy is expected to cost the bank each year.

Bankers would do well to stop trying to avoid this fee, and they should stop trying to block broad-based reforms intended to create a more solid financial system.