Repudiating the Bush Era

Notes on the New Politics

For the last several years NDN has been making an argument that a "new politics" of the 21st century is emerging.  Driven by vast changes in demography, media and technology, and the a whole new set of very 21st century challenges (and one could add the utter collapse of modern conservatism) a new politics was emerging in America that would be very different from the century just past.  

Reflecting on the morning papers 3 stories stuck out as interesting examples of how the world is changing around us.  1st up is how the Army is starting to see nation building and the shoring up of "fragile states" as a primary area of responsibility.  2nd is a fascinating piece by Eve Fairbanks on the sensibility of the next generation of Congressional Republicans.  Finally, a wide ranging and important piece by our friend David Rothkopf, who argues: 

The current economic debacle is far more likely to be seen by historians as a true global watershed: the end of one period and the beginning of another. The financial chaos has brought down the curtain on a wide range of basic and enduring tenets also closely linked with the Reagan era, those associated with neoliberal economics, the system that the Nobel Prize-winning economist Joseph Stiglitz has called "that grab-bag of ideas based on the fundamentalist notion that markets are self-correcting, allocate resources efficiently and serve the public interest well." Already this crisis has seen not just our enemies but even some of our closest allies wondering whether we are at the beginning of the end of both American-style capitalism and of American supremacy.  

Change is indeed coming to Washington.  And this next Presidency will without doubt be among the most important in American history. 

A Real Solution to the Financial Crisis

Milton Friedman once said that "only a crisis, real or perceived, produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around."

Now, I'm not usually one to quote Mr. Friedman, but in this case he is fundamentally correct (as Naomi Klein shows definitively in her fantastic book, The Shock Doctrine). And what we have on our hands right now is a genuine crisis; in fact, a new Washington Post - ABC News poll shows that a majority of Americans view the current financial situation as a "crisis." But that's not all:

"...the poll also revealed significant public concern with the bill Congress rejected yesterday, as few voters said the package did enough to protect 'ordinary Americans,' and nearly half said it did not go far enough to shore up the nation's economy."

What this information should tell progressive lawmakers is that, in the midst of this crisis, there is also a real opportunity to do something important. If they can conjure up the political nerve to seize this moment, they have a chance to help secure the financial (and moral) future of the country. We have offered some suggestions about how this can be accomplished, but the key is keeping people in their homes. The general public is looking for an idea to solve this crisis; they want a measure that protects ordinary Americans and shores up our economy. This is that idea, and now is the time to make it happen.

Back to Basics: The Treasury Plan Won’t Work

Years of reckless mismanagement by the self-styled masters of the financial universe and senior economic policy officials now leave us with no alternatives but major action – but the Administration’s proposals are neither the only alternative nor anywhere close to the best one.

The Treasury says we need its plan to address a liquidity crisis, with banks unable to secure the funds to lend to sound businesses that need to invest or just need to meet their payrolls. There is evidence that overnight lending to banks by other banks or other financial institutions is way down. But there’s no evidence of sound companies unable to get funds to meet operating requirements. Moreover, the Federal Reserve has opened its "discount" window and is prepared to lend funds to any financial institution and at below-market rates. The Bush Administration seems to be trying to steamroll Congress and the public: we have to conclude that there is no liquidity emergency that could conceivably justify the steps they propose.

The Treasury also says Americans have to be prepared to bankroll their plan, because more financial institutions are on the verge of insolvency, which would trigger serious problems for the economy. The insolvency or capital problem is self-evident, since these institutions created it. They borrowed hundreds of billions of dollars to buy mortgage-backed securities and to sell the default-protecting derivatives of those securities, all of which were patently speculative: they bought and sold them precisely because they produced very large streams of monthly income, and since financial markets trade off risk and return, their initial high returns signaled that they were very risky.

Now that the securities have fallen sharply in value, these institutions owe much more on the debt they took on to buy them than the securities themselves are worth. That means capital losses that come out of their equity and leave many of them technically insolvent or close to it. So there is a real capital or equity problem across much of our financial system. The Treasury plan won’t solve it, however, not at least on terms that any sensible legislator, regulator or taxpayer should consider.

The Treasury plan originally contemplated providing that capital by paying financial institutions more than their securities are currently worth – since it’s the current market value of those securities that threatens these institutions with insolvency. So that means ordinary taxpayers would have to overpay for the assets of institutions owned and operated by the richest people in America. That’s the Bush economic doctrine, but it’s not mine – is it yours?

At a minimum, if taxpayers are to overpay rich people for their risky investments, they should get a big equity stake in all the institutions in return. That would make it a version of a debt-equity swap – but if that’s what it is, we alternatively could use regulation to require debt-equity swaps between the institutions and those they actually owe to debt to. That would be cleaner, less intrusive over the long run, and create no taxpayer exposure.

Alternatively, Congress could mandate that these institutions halt dividend payments and raise more capital, since we’re in this fix because they haven’t been subject to capital/equity requirements. Anything can find a buyer at the right price, and as a result of these institutions’ mismanagement, they’ll have to trade more of their equity for the capital -- as Goldman Sachs is doing now with Warren Buffet.

That still leaves the most serious business. Congress needs to take serious steps to address the underlying cause of the crisis by stabilizing the underlying assets: provide a new loan facility for homeowners facing foreclosure or new mechanisms to renegotiate the terms of the mortgages of people facing foreclosure. It also leaves one more thing: the stark and unhappy recognition that the Treasury, the Federal Reserve and the White House have produced an unworkable, inequitable and inefficient plan that Congress need not and should not accept.

Hispanic Heritage Month 2008

Every year the United States takes a time out from September 15-October 15 to recognize the contributions of Hispanics in the United States as part of Hispanic Heritage Month. Hispanics are now recognized as the largest minority in the U.S. - the Census estimates that by 2042 one in four persons will be of Hispanic origin. As this year's Hispanic Heritage Month kicked off this week, it becomes clear that an unprecedented number of Latino voters could decide this year's election, Latinos are increasingly represented in government and industry, Latinos are a growing force in the media - as evidenced by the launch of shows like "Agenda" and "Al Punto" on Spanish language networks, and Hispanics are also becoming web and technology users in rapidly growing numbers.

For these reasons and more, the Pew Hispanic Center reported this week on a survey it conducted on the overall state of Latinos. The report reflects how Hispanics are bearing much of the current economic crisis, combined with suffering increased instances of discrimination.

Half (50%) of all Latinos overall (native and foreign born) say that the situation of Latinos in this country is worse now than it was a year ago, according to this nationwide survey of 2,015 Hispanic adults (higher than the average for non-latinos). Fully 63% of Latino immigrants say that the situation of Latinos has worsened over the past year. In 2007, just 42% of all adult Hispanic immigrants - and just 33% of all Hispanic adults - said the same thing. These increasingly downbeat assessments come at a time when the Hispanic community in this country--numbering approximately 46 million, or 15.4% of the total U.S. population--has been hit the hardest by rising unemployment.

Due mainly to the crisis in the housing and construction industry, the unemployment rate for Hispanics in the U.S. rose to 7.3% in the first quarter of 2008, well above the 4.7% rate for all non-Hispanics, and well above the 6.1% rate for Hispanics during the same period last year. As recently as the end of 2006, the gap between those two rates had shrunk to an historic low of 0.5 percentage points--4.9% for Latinos compared with 4.4% for non-Latinos, on a seasonally adjusted basis. The spike in Hispanic unemployment has hit immigrants especially hard. For the first time since 2003, the unemployment rate for Latinos not born in the United States was higher, at 7.5 percent, than the rate for native-born Latinos, at 6.9 percent, the report found. Latinos make up 14.2% of the U.S. labor force, or roughly 22 million people.

In addition to the economy, issues like immigration, access to health care, and discrimination continue to be of concern to Hispanics and to Hispanic voters. In the Pew survey, one-in-ten Hispanic adults - native-born U.S. citizens (8%) and immigrants (10%) alike - report that in the past year the police or other authorities have stopped them and asked them about their immigration status. Some Latinos are xperiencing other difficulties because of their ethnicity. One-in-seven(15%)say that they have had trouble in the past year finding or keeping a job because they are Latino. One-in-ten (10%) report the same about finding or keeping housing.

On the question of immigration enforcement, the Pew Center's research demonstrates the same data NDN found through our polling on immigration, released last week. Latinos disapprove of current enforcement-only measures - more than four-in-five Hispanics (81%) say that immigration enforcement should be left mainly to the federal authorities rather than the local police and 76% disapprove of workplace raids. Two-thirds (68%) of Latinos who worry a lot that they or someone close to them may be deported say that Latinos' situation in the country today is worse than it was a year ago, as do 63% of Latinos who have experienced job difficulties because of their ethnicity and 71% of Latinos who report housing difficulties because of their ethnicity.

Most Hispanics in the U.S. are native born, i.e., U.S. citizens legally not susceptible to deportation, therefore the fact that most Hispanics worry about raids, immigration, and even facing possible deportation reflects how the existing reckless "enforcement-only" policies are impacting not only foreign Hispanics, but U.S. citizens.

NDN has a history writing and speaking about the Hispanic community as one of the great American demographic stories of the 21st century, recognizing that it will be hard for any political party to build a 21st century political majority without this fast-growing electorate. Hispanics have become one of the most volatile and contested swing voting blocs in American politics, and they are responding to this attention. As reported in Hispanics Rising II, an analysis of the Hispanic electorate and their motivation, Hispanic immigrants are becoming increasingly involved, as reflected by the data released this week by the Immigration Policy Center, demonstrating a spike in citizenship applications. Immigrants want to be U.S. citizens, they want to apply for citizenship, often having to overcome virtually impossible obstacles to be able to pay the obscenely high application filing fees.

Therefore, political candidates will do well to pay attention to the many challenges facing Hispanics today. At the onset of Hispanic Heritage Month this week, both Presidential candidates released statements praising Hispanics' contributions to American society and their military service. The difference between the two statements is that Barack Obama also called for comprehensive immigration reform. On the other hand, John McCain didn't mention it. This is curious because polling for the last 3 or 4 years, including the latest polls conducted by NDN, consistently shows that immigration is of top concern for Hispanic voters.

"Play Stump the Candidate", Says Sarah Palin

Right on the heels of Senator McCain's latest foreign policy gaffe, his side-kick/Vice Presidential running mate decided to take a crack at dispelling these "attacks" about her lack of foreign policy experience. Just to put this in context: in the past week a bomb was detonated at the U.S. Embassy in Yemen, two U.S. ambassadors were expelled from Latin American countries, and the ambassadors from those nations were similarly recalled from the U.S. (not to mention the ongoing conflicts in Afghanistan and Iraq, of course). The importance of the actual knowledge - not just "experience" travelling - and understanding of these complex international relationships by Presidential candidates cannot be understated. It is anything but unfair to demand that the persons running for the highest seat in the land possess higher than average knowledge and understanding of the different regions in the world and our interest in each.

In this town hall meeting Gov. Palin basically says that we shouldn't fear because she and her running mate might not be ready now, but they will be ready "on January 20", "God willing". And she explains her credentials in the area of foreign policy: she'll be ready because she "has that readiness"...she's "ready to serve". "You can even play stump the candidate if you want to" by asking her "specifics, with specific policy or countries."

 

New Two-Minute Obama Ad on the Economy

U.S. Sen. Barack Obama on the economy, in two minutes:

 

As Simon wrote, Obama does just what he needs to do here: Sit down, look at the camera, and tell the American people how he plans to fix our economy. This is an issue on which he should be dominating, and I have a feeling he's about to pull ahead.

Matt Damon on The Palin Ultimatum

And just for fun - I think Matt Damon brings up a good point.

I love the comment a VERY conservative friend of mine made when I sent him this video: "Caring or quoting what celebrities think about anything is usually cause for a punch line, but in this case, he happens to be correct."

His comment reflects how during this election, unlike any other, people are switching parties, switching preferences, and reflecting over a broader array of issues that are less substantive but no less relevant - issues like race and age in a Presidential election, the role of a Vice Presidential nominee - much more than in the past.

 

 

 

 

NDN Releases Major Findings on Immigration

Today, NDN released polls conducted among all voters in four key battleground states - Florida, Colorado, New Mexico and Nevada - that show strong support for comprehensive immigration reform. As Simon and Courtney mentioned, the poll was conducted in key swing states that also have a large Hispanic Population. Additionally, the states in question are reflective of the cross-section of Hispanics in the United States, with Florida's Hispanic population consisting mainly of foreign-born Hispanics from the Caribbean and South America, Nevada with mostly foreign-born Hispanics from Mexico, and New Mexico and Colorado with largely native-born Hispanics.

For an in-depth look at how the public views the immigration debate in these four states, please view our full Immigration Survey Report here.

As stated in the Executive Summary, our findings indicate that in each of these four states, voters:

  • Overwhelmingly support Comprehensive Immigration Reform as:
    1. Strengthening border security
    2. Strengthening interior enforcement through an employer verification plan
    3. New visa program for 200,000 workers annually
    4. Increasing the number of family visas available
    5. Path to earned citizenship for the undocumented once they meet certain requirements.
  • Have a positive view of undocumented immigrants, believing that they have come here to work and seek a better life, are not taking jobs from American citizens and are not interested in receiving public handouts.
  • Blame the federal government and businesses - not immigrants - for the broken immigration system. This tells us that the anti-immigrant message of the Lou Dobbs and Rush Limbaughs of the world actually doesn't resonate with the large majority of voters.

The data also shows:

  • The issue of immigration remains an important issue to voters, particularly Hispanics, and Democrats and Barack Obama are more trusted to handle the immigration issue than U.S. Sen. John McCain and the Republican Party.
  • The dramatic swing of Hispanic voters to Senator Obama in Florida, Colorado, New Mexico and Nevada - with a total of 46 electoral votes - has helped turn these previously red states, which were critical to Bush's narrow victory in 2004, into competitive swing states this year.
  • But in each state, 14 percent to 20 percent of the Hispanic electorate remains undecided, which translates into a two percent to six percent of the statewide vote in each state - a percentage significant enough to tip dead-even states into one camp or the other.
  • The Hispanic vote may very well determine the Presidential winner in these four states. Given how close the election is, this may determine the outcome of the Presidential race itself.

Therefore, the data proves that the paranoia over the prospect of dealing with the broken immigration system due to the emotional nature of the debate as framed by anti-immigrant activists is unfounded. An overhaul of our current immigration system is not only the right thing to do, there is an urgent need for it and the data demonstrates that there is overwhelming support to enact it. Enforcement-only is not an immigration policy. We need to fix the entire broken system. Just this morning, USA TODAY's Emily Bazar wrote a story reporting how the higher application fees at ICE are actually discouraging immigrants from seeking citizenship. Even Mark Krikorian, Executive Director of the research center for a series of anti-immigrant hate groups, CIS, which calls for reduced immigration agrees fees are, "probably too high" and should reflect only processing costs.

When it comes to immigration reform, our data matches the data from the many polls conducted on this issue for the last three years: politically, immigration is actually a positive and not a negative because voters want action, and from a policy standpoint there is a consensus to enact it.

 

 

 

What Becomes of the Broken Maverick

A few hours ago, I got off the phone with my Dad who was driving by Franklin and Marshall College in Lancaster, PA. Seeing the large crowds and commotion, he asked if I had heard whether "anyone big" was visiting. He said he thought U.S. Sen. John McCain and Alaska Gov. Sarah Palin were making a stop there, so I looked it up and confirmed to him that he was right, prompting him to react with what seems to be the prevailing assessment surrounding the GOP ticket: everyone was there to see Palin.

McCain, who was quick to label U.S. Sen. Barack Obama as a celebrity, now embraces, perhaps even encourages, the glamorous reception with which his running mate is met. It seems like he was right to do so in the short-term, as the focus of the election, as Simon has mentioned, has shifted to Palin. Though that's not really surprising, given that the timing of her introduction left us either amazed by her acceptance speech or wondering who she is and what she believes.

Yet while the scramble for information over Palin was especially hurried after she was chosen as McCain's running mate, the dust has since settled from her speech in St. Paul. And with the clearing comes more information - from her understanding of institutions like Fannie Mae and Freddie Mac to her conduct as Governor. What little we are learning about Palin comes from her interactions with regular citizens since she has been absent from the talk shows, as well as through close friends who speak well of her personally but seem mixed when the subject turns to politics.

All of this unravels before our eyes, gets us caught up in Alaska drama, and deflects attention away from McCain towards Palin. Recognizing this, and maybe trusting the media and the American people to do its due diligence on Palin, the Obama campaign is bringing the focus back to the GOP nominee and his Party's record. Its latest ads, "No Maverick" and "Naked Lies", as well as his speech on education are good examples of this strategy.

Meanwhile, McCain continues to tout Palin - whose speech is the only one from the GOP Convention that is highlighted on McCain's YouTube channel - and that maverick nature of theirs. As mentioned above, plenty of people have and will sift through Sarah Palin's past and credentials, which frees us up to focus on the notion of the maverick.

One definition from Princeton shows that, as a noun, "maverick" has two meanings: First, a rebel; and second, an unbranded rage animal that belongs to the first person who puts a brand on it. An adjective for the term: irregular.

While the bit about the "rage animal" seems to align itself with one of McCain's purported problems, I must acknowledge that the term maverick does connote a positive image in the "independent in behavior or thought" sense. We're familiar with that image. It's what defined the John McCain of yesteryear and won him public admiration from all sides. Yet things changed for him when he was branded the GOP nominee and started marching to the beat of a different drum, avoiding or outright fleeing from his once admirable stance on a whole slew of issues. Instead of sticking to his guns, he gave into the brush-clearing tactics of his predecessors.

It's almost tragic, really. The glorified way in which he painted his maverick image is now broken, and in its place we are left with an all-too-familiar ideal that begs for real change we can believe in. 

Update: The Huffington Post is chronicling the news sources that are speaking out about the McCain campaign's recent tactics, which seem to evoke the irregular nature of the maverick. 

Update II: Reuters shows how McCain finds the campaign trail to be more hostile when Palin's deference-deserving persona isn't with him on the trail. 

Update III: Brave New PAC weighs in on the maverick's campaign in the video below: 

(Note: You are now free from my random musings and long and tedious '08 Updates, as I have left NDN. Unless a new Kanye West video comes out and I can relate it to the work of the NDNBlog champions, it's safe to say that I will be appearing much less in the months ahead. I do look forward to returning occasionally, and hope to see you all soon! Thanks for putting up with me for so long...)

McCain, The Fallen Hero

As I wrote earlier this week, the central drama of the Republican Convention was not the emergence of Governor Sarah Palin, but could Senator John McCain adequately distance himself from this terribly disapointing era of GOP governance to give himself a shot at winning this thing?

As of this morning while I think McCain and his team tried very hard and had a strong last 2 days of the Convention I'm not sure they pulled it off. Hurricane Gustav did its part, knocking Bush and Cheney off the stage without disrupting the rest of the Convention. And Sarah Palin did her part, and has now arrived on the national stage as a powerful new part of the GOP's future. We also saw all sorts of GOP moderates, not normally associated with hard right conservative politics. We were bombarded with iconic American images, mostly from a time gone by. We heard about the virtues of small town life and the dangers of cosmopolitianism. We saw large and attractive families, strong and articulate women, and a never ending stream of American flags. What we almost never heard about was George Bush.

While Palin was a glimpse of the GOP's future, most of what we saw was an evocation of the GOP's and America's past. After all John McCain was born a long time ago. He is the oldest man to be the nominee of either Party. He is very much a man of the 20th century, of its battles, struggles and culture. The problem for him is that past includes the GOP's recent Washington ascendency a period which has without doubt been among the worst periods of goverance America has ever seen.

In his speech last night John McCain acknowledges his disapointment with his Party in recent years, and while he does his best to spread the blame the thrust of his remarks are clear:

I fight to restore the pride and principles of our party. We were elected to change Washington, and we let Washington change us. We lost the trust of the American people when some Republicans gave in to the temptations of corruption. We lost their trust when rather than reform government, both parties made it bigger. We lost their trust when instead of freeing ourselves from a dangerous dependence on foreign oil, both parties and Senator Obama passed another corporate welfare bill for oil companies. We lost their trust, when we valued our power over our principles.

And in watching him last night, this aging warrior, I got the sense that he knew that it was unlikely that he was going to win this election and lead this fight in restoring his Party. That he could craft a road map, and promote the leaders - like Palin and Ridge and Whitman - whom he hoped would carry on this important fight. But that the damage done by the recent conservative rise was too great, too fresh and that too many of its leaders were still in positions of power; that he, by adopting so many of the core arguments of this era to win the nomination was no longer the man of virtue he once was; and that he at the end of the day simply does not have a big enough vision, enough energy, enough understanding of the moment to be the one who can lead this post Bush-DeLay-Abramoff Party forward.

Which is perhaps why this Convention spent so much time talking about him and his past - it was in essence a validictory event rather than the beginning of a winning campaign. And that it did achieve something very important to McCain - the beginning of the liberation of the Party he loves from the grips of corrupt, weak and ineffective leaders. That my friends is no small accomplishment, and one that McCain seems to be in the process of pulling off. Whether however he can do the next thing - make a more compelling argument about the future than his opponents - remains to be seen. The task of doing so became almost impossible when McCain sacrified his own beliefs and principles to win the GOP primary, and in my gut I think he knows this.

More than anyone else John McCain knows that the mythical character he has become is not the successful aging warrior, but the fallen hero, overwhelmed by events much greater than him. And that his year he will do his part and fight the good fight all the while knowing that it will be others who end up carrying on and winning the battle that he began waging in St. Paul.

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