Are the White house and the Democrats really so isolated that they don’t realize that no matter how well they say they have done the American voters don’t agree? From the sinking economy, lack of jobs, the ineffective health care and financial regulation bill, the Cat Food Commission to the weak support of GLBT and Women’s Reproductive Rights, the lack of strong support for Progressive/Liberal issues is affecting Democratic candidates in key races.
It is not a “profound mystery” that the Democrats and the President have sold out on core Democratic principles and have failed to get the job they were elected to do done.
The Economy is the biggest problem and will need some really bold moves by the President and Congressional Democrats, even if the Republicans and Blue Dogs object. It is well part time that the the administration embrace the Congressional Progressive/Liberals and throw the conservative Democrats under the bus.
From Paul Krugman:
Lately, the hysteria over deficits in the United States has definitely brought back memories of that march to war. In a recent opinion piece about the current enthusiasm for fiscal austerity, Chris Hayes, Washington editor for The Nation, wrote: “From one day to the next, what was once accepted by the establishment as tolerable – Saddam Hussein – became intolerable, a crisis of such pressing urgency that ‘serious people’ were required to present their ideas about how to deal with it.”
If the Iraq parallel is any guide, and deficits become intolerable for everyone, years from now, when the American economy is mired in a deflationary trap – long after most people will have conceded that austerity was a mistake – only those who went along with the mistake will be considered “serious,” while those who argued strenuously against a disastrous course of action will still be considered flaky and unreliable.
This is the biggest reason for the President to end the Cat Food Commission and distance himself from Alan Simpson and conservative Democrat, Erskine Bowles, as well as the conservative bias of the rest of the commission.
From Robert Reich:
Many big American companies have been showing profits because they’re doing ever more business in China while cutting payrolls at home. American consumers aren’t buying much of anything because they’ve lost their jobs or are worried about losing them, and are still trying to get out from under a huge debt load (the latest figures show more consumer debt delinquent now than last year and a surge in personal bankruptcies). The U.S. housing market is growing worse, auto and retail sales are dropping, and the ranks of the jobless continue to swell.
Why are companies making huge profits sending jobs to China? Because like the failure of Congress to truly regulate Wall St, the President has backed away from his promise to close the tax loop hole that makes it more profitable for these companies to ship jobs overseas. The proposed bill died in Congress this past May along with extending unemployment for the “99ers”.
This is just the tip of the iceberg.
h/t Glenn Greenwald @ Salon