The Surrender President
Obama's "deal" isn't a compromise. It's capitulation. And there were alternatives.
By Mehdi Hasan Published 01 August 2011 19:15
We got 98 per cent of what we wanted.
That's the verdict of Republican congressman and House Speaker, John "dark side" Boehner, on the debt deal that was agreed yesterday between Barack Obama, congressional Democrats and congressional Republicans.
The deal, as the BBC summarises, involves:
* Government spending cuts of $900bn, split between defence and non-defence spending
* Bipartisan Congressional "super-committee" to recommend $1.5trn of further spending cuts, spread out over ten years, reporting by November
* Cuts to key spending areas, including education and defence spending, to be enacted automatically if committee fails to reach a deal
It's difficult to disagree with Boehner. Obama started off asking for a "clean" rise in the $14.2trn debt ceiling and then switched to pleading for tax revenues to match spending cuts. He got neither. He couldn't even get the Tea Party crazies to agree to the abolition of the tax exemptions on private jets. The US budget deficit will be paid off the backs of the poor. Here is the opening para of a news report on the website Hedgefund.net:
Hedge-fund managers and others in the investment world breathed a sigh of relief when President Barack Obama announced Sunday night a tentative deal to raise the county's debt ceiling.
Obama defenders have also railed against critics of the president, asking again and again: "Well, what was the alternative? What is YOUR alternative?"
Well, to begin with, as the Irishman said, "I wouldn't have started from here."
But Paul Krugman offers some details:
Did the president have any alternative this time around? Yes.
First of all, he could and should have demanded an increase in the debt ceiling back in December. When asked why he didn't, he replied that he was sure that Republicans would act responsibly. Great call.
And even now, the Obama administration could have resorted to legal maneuvering to sidestep the debt ceiling, using any of several options. In ordinary circumstances, this might have been an extreme step. But faced with the reality of what is happening, namely raw extortion on the part of a party that, after all, only controls one house of Congress, it would have been totally justifiable.
At the very least, Mr. Obama could have used the possibility of a legal end run to strengthen his bargaining position. Instead, however, he ruled all such options out from the beginning.
As Robert Reich, the academic and former US labour secretary (under Bill Clinton) points out:
But another part of the answer lies with the president -- and his inability or unwillingness to use the bully pulpit to tell Americans the truth, and mobilize them for what must be done
Barack Obama is one of the most eloquent and intelligent people ever to grace the White House, which makes his failure to tell the story of our era all the more disappointing and puzzling. Many who were drawn to him in 2008 (including me) were dazzled by the power of his words and insights -- his speech at the 2004 Democratic convention, his autobiography and subsequent policy book, his talks about race and other divisive issues during the campaign.
We were excited by the prospect of a leader who could educate -- an "educator in chief" who would use the bully pulpit to explain what has happened to the United States in recent decades, where we must go, and why.
But the man who has occupied the Oval Office since January, 2009 is someone entirely different -- a man seemingly without a compass, a tactician who veers rightward one day and leftward the next, an inside-the Beltway dealmaker who doesn't explain his compromises in light of larger goals.
In his inaugural address, Obama warned that "the nation cannot prosper long when it favors only the prosperous." In private, he professes to understand that the growing concentration of income and wealth at the top has robbed the middle class of the purchasing power it needs to keep the economy going. And it has distorted our politics.
He is well aware that the Great Recession wiped out $7.8 trillion of home values, crushing the nest eggs and eliminating the collateral that had allowed the middle class to keep spending despite declining real wages -- a decrease in consumption that's directly responsible for the anemic recovery.
But instead of explaining this to the American people, he joins the GOP in making a fetish of reducing the budget deficit, and enters into a hair-raising game of chicken with House Republicans over whether the debt ceiling will be raised.
Never once does he tell the public why reducing the deficit has become his number one economic priority. Americans can only conclude that the Republicans must be correct -- that diminishing the deficit will somehow revive economic growth and restore jobs.
And here's Bill Clinton, the Bubba himself, earlier this month, saying what he'd have done were he still in the Oval Office:
Former President Bill Clinton says that he would invoke the so-called constitutional option to raise the nation's debt ceiling "without hesitation, and force the courts to stop me" in order to prevent a default, should Congress and the President fail to achieve agreement before the August 2 deadline.
But Obama shied away from using the 14th Amendment. Perhaps, as Reich suggests, because:
. . . he simply lacks the courage to tell the truth. He wants most of all to be seen as a responsible adult rather than a fighter. As such, he allows himself to be trapped by situations -- the debt-ceiling imbroglio most recently -- within which he tries to offer reasonable responses, rather than be the leader who shapes the circumstances from the start.
Obama cannot mobilize America around the truth, in other words, because he is continuously adapting to the prevailing view. This is not leadership.
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37 comments
If people are frustrated with Obama it is not just because of the debt ceiling.The majority of the american public in polls show that they want higher taxes on the rich,They wanted nobody to touch Medicaire,medicaid and social security and lets not go anywhere near healthcare and the public option !! On everyone of these occasionsnb he as moved to the right with the GOP.
He was voted in to change Washington and he as done things that the Bush and the GOP would not dare do !! He had all three branches of government for two years and the spineless Democrats just feathered there nest !
Looking at the long game I'm sure Obama will take the 14th next time, as elections.
He will be able to cite his previous flexibility and the lack of compromise from the GOP/TP. And talk about vested interests, decisive action and making a stand.
ugh .. as elections -> as elections loom.
This episode just goes to highlight something I've though for a long time: The US is an absolute joke.
As much i would have loved Obama to stick it to the Tea Party, any 14th Amendment attempts would have likely have led to the Republicans trying to impeach Obama. It's the voters fault for voting in the Republicans.
Does this come as a surprise? Anyone who has watched this presidency could have predicted this, in fact, why was it even allowed to get to this stage?
President Obama is a lot of things, but he sorely lacked political experience when he entered the White House, the system is too big and he is getting swallowed up.
If he gets a second term it will be 4 quick years to the speakers circuit. To be fair to him the job has become virtually impossible but then that is why you need an FDR type to get the job that needs done, done.
Any chance of writing the bulk of an article yourself instead of just copying and pasting!!
Stop scolding Obama for not standing up please. He is still a black man, even though he lives in the US white house, remember?
Black or white is not the point. He is still the President and has a duty to all Americans and indeed the rest of the World. The President has immense power even though the vested interests are lined up against him. And he is a Democrat and should be introducing Democratic policies, those that he was elected on, in his first 2 years. Obama like most Presidents don't really know hat they are letting themselves in for; after the euphoria of an election victory, its time to get on with the programme and fulfill all those promises.
Look at who Obama is surrounded by. His "economic advisors" are all Wall St. or hedge fund types. That being said, is it so surprising that he would consistently give in("compromise")?
Obama and other politicians constantly talk about how "politics is the art of compromise". No it's not. This proves that trying to shove your views down the throats of others is all that matters.
It's boring to have to say this, but I will. Being the first President of color, Obama can only go so far. It's no secret that many of the neocons hate having an African American President and will do anything to destroy him. Now, will any national politician be stupid enough to publically call Obama the N word and risk throwing away his career? I don't know. However, if Obama fights back too much many will say he's being "uppity" and other idiotic racist rubbish.
What's even worse than that? That's considered "normal" in Stateside politics. For two years, Obama had to just sit there and take endless racist abuse during the '08 campaign. He was told, this is how it's done. If you can't take it, quit and go home.
Now, three years later Obama knows this "agreement" won't solve anything. All that matters to the corporate Powers that be is get the bloody markets open again. Which means even more borrowing and spending.
14th amendment, section 4: "The validity of the public debt of the United States, authorized by law..."
The implications of which are really not as clear cut as is being made out.
The Armchair Presidents, turning on Obama, and screaming "14th amendment!" on their blogs and Twitter streams would rather have staked global economic stability on a long drawn out game of chicken between POTUS and the Supreme Court, rather than the shorter and resolved version between POTUS and Congress.
It is hard not to sympathise with US Democrats. They have a leader who does not lead - who capitulates to the benefit of hids pponents and against the interests of his supporters. They must feel like Labour Party members.
well actually he did have a very clear alternative - Article 14 - but was too spineless to take it. There would have been lots of justification to do so in the current situation, but it seems our fallen hero was once again afraid to upset the rightwing, redneck, racist Republicans.
Obama has played the 'reasonable' card. In his speech subsequent to Congressional approval, Obama mentioned the billionaire hiding in his tax shelter and the wealthy paying the same level of income tax as the nurse.
Down the road apiece he hopes to get the Republicans holding out for the folks who just happen to have a million or two. The Democrats will no doubt be supporting the American worker and the old timers needing Medicare and other earned benefits.
There will be a gunfight at the Congress corral. And dad blame me if it ain't gonna be a helldinger of a ruckus.
Deputy Dawg
Let's be brutally honest, surely, in times like these, as the whole edifice, the giant stack of cards begins to totter and fall, anything else would be cowardly?
Obama is, like most presidents, a mere figurehead, or puppet, for far bigger and deeper sources of power in society, interests that remain and continue long after the current occupant of the White House shuffles off into history.
What's tragic is the shear scale of the damage Obama and his handlers are imposing on the American people, literally wiping out decades of social progress, giving up without a fight what was so dearly bought.
Obama is the servant of Wall Street, his entire adult career, and probably from childhood, has been to make himself available, show his talents, sell his abilities, and make himself an indespensible asset to the rich and powerful. Even at Yale he realised his worth in the current climate, that for a person of 'colour' with his education, ambition, and abilities, the sky was the limit.
And he proved it. He got the top job, but, strangely, seemed to lose interest in it once he had it. What had he become president for exactly? The answer was, not much. A man without much real interest in politics becomes president and has close to no idea what to do with his symbolic power. So bowing to power is obviously the easiest course and fits his personality perfectly. Another wasted opportunity for reform, another wasted eight years.
Since his election Obama has had two overwhelming priorities; the first was to undermine the anti-war movement, the second was to protect the interests of the financial aristocracy that control the US economy. On both accounts he's succeeded.
For those who believed he represented a break with the past and the trajectory of the Bush era; more war and more inequality, he's a disaster, a disaster for the vast majority of Americans, but a saviour for the 1% who real count, an elite who can continue to 'rob' the country virtually unopposed for even longer.
He is an incredibly weak president, inept, with the politics of a conservative male model. He is all surface and no substance, something the right realized far sooner than Obama's liberal base, who swallowed his bullshit like it was the softest, sweetest, cream.
Obama could have chosen another course and used his 'historic' victory, with an oppositon on its knees, to introduce a Green New Deal and create millions of new jobs. Instead he acted as if he hadn't really won at all and began to 'copromise' with the people he'd just defeated. There was no break with the Bush years at all, there was continuity, look at the people he chose as his advisors.
One feels really sorry for ordinary Americans who, as usual, have been screwed again.
Obama is a charlatan.
Let's look at his economic policies; cutting expeniture in the depths of a depression, actually taking money out of the pockets of millions of ordinary Americans... when has that ever worked?
He could, for example, have fought and explained to the public that as the United States is, supposedly, 'at war', 'under attack' and in a depression; sacrifices were needed by everyone, and that he was going to fight for tax increases on the corporations and the super-rich. He could have begun the process of dismantling the empire and bringing the legions home and diverting the grossly bloated military budget towards rebuilding the domestic US economy and infra-structure.
It's not that the US isn't incredibly powerful and fantastically rich, but rather that the resources are wasted and directed at the wrong things; war, empire, and decadent luxury for the top 1%. What about the 99%, when is it there turn?
But Obama, culturally and politically, isn't the kind of person to challenge vested and powerful interests, who profit massively from both inequality and the empire. He has the attitudes of a servant or a courtier, not a radical and determined reformer. For ordinary Americans... he's, yet another, disaster.
It's ordinary Americans who are angry at big government, high taxes and endless pointless foreign wars. It's ordinary Americans that are angary at big bussiness. It's ordinary Americans that keeps voting for the tea party.
Here in Smolensk butcher's shop, we think you miss wisdom of this deal. I post on Daily Kos site on how Tea Party will save America > http://t.co/jNEHCEx
Personally... I don't think it really matters very much who ordinary Americans vote for... voting, though interesting as a form of gigantic opion poll, doesn't really lead to fundamental, structural, changes to the distribution of wealth and power in society, or radical changes in imperial strategy. When has grand, imperial strategy, ever been influenced by the 'mob'?
I'm all for, up to a point, 'democracy', in theory; but I question its practicality and how one impliments it on a large scale.
If, for example, one looks at a series of opinion polls, for what they are worth, one can see that there is an overwhelming opposition, or at the very least, scepticism among 'ordinary' Americans relating to the 'empire'. Most Americans don't want to spend their taxes paying for the US play the role of the world's policeman. They want the money spent at home. If foreigners what to kill each other, well, that's their business. Yet decade after decade the US elite more-or-less totally ignores the will of the people, the majority, and spends a vast fortune on grand, imperial, strategy, and pointless wars.
Second, the American people want the corporations and the super-rich to pay their fair share of taxes. Americans aren't stupid. They understand that their tax system is grossly unfair and puts the burden on those who earn least and own peanuts, whilst the super-rich, as in 18th century France, pay far less than their share.
How is this possible in a democracy? First to ignore the will of the people and secondly to pursue policies that are oposed to the will and interests of the majority?
Do Americans really 'freeely' choose and vote for their own 'castration'? Or is the political system structurally biased in favour of the interests and reflects the power of the elite, far, far, more than it does the will of the people?
Obama is the perfect example. Here one has a candidate that promisses real change, people give him an historic level of support, a mandate for change... yet instead of reform, once in office he changes tack and reaches out to the same people and the same policies which the people have resoundingly rejected, almost as if there existed a permanent 'House of Lords' that has a veto over the will of the people, regardless of how they vote. Like a kind of 'shadow Congress' exists, made up of powerful, vested, economic interests, and the military, who don't have many votes, but who do have collosal power.
And even the Tea Party are a minority, but incredibly well-financed, how does a minority like them gain so much power way beyond their actual numbers, in a democracy? Does this indicate that a well-funded and well-organised minority can weild disproportinate power in a democracy? How exactly is that representative and democratic?
Mr Hasan is just obsessed with running the president down, Mr Hasan is like a jealous little school boy. I doubt he had this much to say about the idiot George Bush. Did it occur to you at all that the intransigence that the 'Tea Party' and the GOP are displaying could be racially motivated? Considering they let George Bush spend whatever he wanted without complaint, including losing a billion dollars somewhere in Afghanistan. If you capitulate because your country will go down the swanny then who are we to sit finger-pointing and judging? We have enough clowns in this country to deal with. Keep your nose out Mr Hasan
Tom has a point. I often wonder whether this intelligent and inherently brave man acts spineless because of his colour, feeling the need somehow to 'play the game'and not come across as a big (black) bully. You will never mollify racists, so he might as well fight his side more vigorously rather than keep trying to compromise with extremists who are beyond reason.
The banking system rules the world. But all the politicians were happy to turn a blind eye, whilst the system suited them, with ridiculous credit and lending levels, spurred on in the name of capitalism and socialism as it raised the standard of living for the masses. This extra state spending should have come from higher taxes, but instead peoples wealth was created on never ending credit. This was to cover up for a lack of economic imagination and allowed the monopolies to expand even more, fuelled by the average persons personal debt. The banking wide boy scams started in the late 80's, but not one socialist politician in the world noticed the collapse of BCCI and Barrings in the city and thought - hey! Things are getting dangerous. But then bank auditors are paid by the short termist rich kids in the US and UK banking industry not to find the errors. The system is inherently flawed and whilst Brown was commended for his bail out stance and now Obama is being encouraged to do the same. The sums are so vast and will come from a loss of jobs- (think bank of scotland and job losses with the super injunction man we can't mention) from the low paid bank workers at the bottom,(nice bonus for getting rid of staff and making no profits). Brown was an economic genius- not!!!He loved that guy. Or the bailout will come out of the public purse, like it is doing now.
The banking system is flawed, but nobody will fix it. Now Russia and China rule the world in their relatively debt free societies, we can look forward to being servile to their high electric and gas prices (russia) and being ever in debt to china.
So patching up this emergency with a higher debt mountain is the only solution, but it is getting a bit like drug dependency. It might be necessary, but where will it all end?
Why do they even have two political parties in the United States? To disguise the fact their political system is really a form of dictatorship. One party rule would make it way too obvious.
But today, for various complex reasons, it's becoming increasingly difficult to hide the nature of 'elite, class rule' as the economy shrinks and the empire falters in key areas. An empire is either expanding, and successful, or contracting, and a failure; their is no state of equilibrium for empires.
Now, the heart of the empire is no longer the economy, which has been outsourced, the heart is now the military machine, the legions, which function like a state within a state, a military state like a gigantic parasite inside the body of what's left of the democractic republic.
A massive political, and democratic, challenge in the United States, is how does one curb the power of the legions, and the people in the civilian sector, who profit so vastly and disproportionately from the emperial project?
Historically, from the very beginning of the republic, and still today, there has been a form of 'conspiracy' between the military and those in the 'private sector' supplying the military, to cheat and rob the treasury of as much as they could get away with. Corruption and crime were, and are, at the core of the military/industrial complex, but because it's the military criticism is muted because of the fear of being thought unpatriotic. This attitude is a permanent, golden payday for a thoughroughly corrupt and grossly wasteful system. And this corrupt, destructive system is about all that's left of the state, or soon will be. The corrupt heart of an empire in terminal decline, heading, in a desparate attempt to justify its own existance and worth, for even more war.
I asked elsewhere, could he not have issued an executive order in this case? The US constitution clausefor their use is quite vague and I wondered if they can be decreed in these sort of economic circumstances.
Te President is not the Pope and doesn't rule by decree, particularly when it comes to Budgetry Matters.
Obama must be mightily relieved; he's got his breathing space and 'the trillion $ cuts' for which the Republicans will be blamed.
And if the economy does by a miracle improve, he can always claim the credit.
Obama is bound to win because the Republicans have yet to find a credible candidate.
Stuff and nonsense. For anyone slightly familiar with smoke and mirrors operations in the Congress and Administration, the debt ceiling "compromise" is easily recognized as fairly hollow. It doesn't reduce the deficit by very much for years (most of the cuts are backended -- almost nothing occurs for years), and if, even by some miracle, it does kick in early, the results would hardly show up as a blip on an accountant's graph. The main point, however, is that there is absolutely no way to prevent a Congress, or an Administration, three terms from now, from completely ignoring this deal. Even so, on its own terms, a huge chunk of the proposed cuts come from Defense spending -- did you miss this not unimportant fact? Medicare, Medicaid and Social Security recipients are protected from any cuts flowing from the deal. Tax increases are indeed on the table (and the expiration of the Bush tax cuts are hanging out there as well). Obama gets to push another bout with the Tea Partiers over debt extensions well into 2013, after his re-election. He has now insulated himself to a degree from the charge that he is all spend, spend, spend -- Republicans can hardly claim he is after he gave them their great "victory" in raising the debt limit, can they? The answer is yes they can, but it will have little force. I don't doubt that Republicans will soon wonder who snookered whom in this farce.
The article is correct in every detail. But, come 2012, what is the alternative to Obama which is not a full horror movie scenario? The Republicans would caused the global financial meltdown from sheer ideological stupidity.
Is Mehdi really in a position to make jokes about politicians being from the, er, "dark" side?
The executive power of the President can conquer all. But it not something that a President wants to use on a matter such as this. I suspect he used it as a bargaining chip to get a deal. I used the situation to make a heap of dosh by buying call options on Friday and selling on Monday .. probably more than Mehdi Hasan makes in 6 months.
Medhi, no one in US politics comes out of this well, but the result is in fact a sensible compromise, and does get to address defence expenditure which has to be cut as it is unsustainable if you want healthcare reform. Like it not (readers of this august magazine ignore them) the debts in the west are real and must be tackled through cuts and tax rises...both seem unavoidable.
A heck-of-a-lot of Republicans and 'way-down-south Democrats are still south of the border if you consider the Mason-Dixie Line.
'The America my Dad used to know!' Seen a lot of placards with this legend. Strangely, NO smoke signals. Reckon there must be more than a smidgeon of Native American blood in them 'on-the-prod' protesters.
Next Prez gotta be one of our tribe - not one of them Tea Bag Ladeeze, pleezze.
Crazy Horse & Braves
If anyone can answer this question, you will have your answer to this promblem?...."Why is the Federal Reserve {A seperate Company EX:LLC} Printing money with a DEBT attatched!! and selling it back to the U.S.A??? WTF!!!???
I think we are all aware that the President is only the head of a "company" set up by a higher order:}! And "DEBT" is a form of slavery to the people!!! Some might call it FACISUM!!? OUR Money used to be backed by Gold and is no longer backed by shit!! Total BS!!! USERY!!..."Every Dollar printed should be gaining wealth for this Counrty! not adding DEBT!"...
America had it's short flirtation with progressive politics, but found it doesn't pay the bills, and end unpopular foreign wars. Like it or not. American politics will move sharply to the right, it's going to be the tea party that will be driving American politics for the foreseeable future.
In Europe the equivalent to the Tea Party would be recognised as right wing going on fascist and kicked out of any right of centre party. Just as far left Militant group was kicked of UK's Labour party.
Where is the centre in American politics? And why don't they organise to squash the far right?
What a damn shame. There seems to be practically no one in power who is on the side of the little person right across the world. Profoundly depressing.
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