Obama tried to have it all on the stimulus – now inches to the “right” on financial cures

Without a doubt, Obama has tried to “have it all” on this stimulus bill…. nicely laid out in Newsweek’s Robert Samuelson’s op-ed today, Obama Ducks Hard Choices: Why investing in tomorrow won’t help today’s economy. He made an ambitious reach, along with his Dem leadership, to package a financial boost along with big spending energy and education, health care, and a new infrastructure.

As it turns out, President Obama didn’t make the tough choices on the stimulus package. He could have either used the program mainly (a) to bolster the economy or (b) to advance a larger political agenda, from energy efficiency to school renovation. But Obama wanted both, and, superficially, the two can be portrayed as an enlightened partnership.

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In its releases, the White House gushes superlatives. The stimulus program, says one fact sheet, “launches the most ambitious school modernization program on record,” “computerizes every American’s health record in five years” and “undertakes the largest weatherization”—insulation—”program in history.” What a bonanza of good stuff!

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The decision by Obama and Democratic congressional leaders to load the stimulus with so many partisan projects is politically shrewd and economically suspect. The president’s claims of bipartisanship were mostly a sham, as he skillfully maneuvered Republicans into a no-win position: Either support a Democratic program, or oppose it—and seem passive and uncaring.

But the result is that the stimulus, as an act of economic policy, is hobbled. A package so large can be defended only because the economy is so weak—and seems to be getting weaker by the moment. The central purpose is simple: halt downward momentum. Perhaps some of the out-year spending might ultimately prove useful. But the immediate need is for the stimulus package to stimulate—now. It needs to be front-loaded; it isn’t.

Obama’s political strategy fails to address adequately the economy’s present needs while also worsening the long-term budget outlook. Some of his “temporary” spending increases in practice will almost certainly become permanent. There were tough choices to be made—and Obama ducked them.

[Mata Musing: There’s some “good stuff” in this article specifically about that alternative energy grid, BTW… have a full read.]

But as the events of the day wear on, it’s fascinating to watch a man who seemed so confident in government and his party’s spending plans as being “the cure” inch a tad into the more traditional conservative corner on economics…. resigning himself to the reality that he just may have to have his cake, sans the icing.

He did tap the GOP Senator from New Hampshire, Judd Gregg, as his new Commerce Secretary… with a few humorous caveats thrown in to soften the blow to his liberal cohorts.

“Clearly, Judd and I don’t agree on every issue, most notably who should’ve won the [presidential] election,” Obama joked in announcing the nomination, “but we do agree on the urgent need to get American businesses and families back on their feet.”

Gregg will be an “able, persuasive ambassador for industry” because he is a skillful negotiator and a “master of reaching across the aisle to get things done,” Obama said.

Project Vote Smart shows him to be relatively conservative on the issues, with few exceptions. CNN describes him as “known for being fiscally conservative.”

Conservative, Michelle Malkin, thoroughly disagrees, while DailyKO’s brownsox can’t figure out why Obama’s doing it, and calls it “regrettable” while giving it the thumbs on the “Noble Spirit of Bipartisanship”.

Apparently, Gregg’s pick doesn’t please anyone… and perhaps that’s a good thing in itself.

BTW, it appears Gregg was recommended by his pal, Harry Reid. So one would have to guess this is one conservative they either consider friendly enough to deal with, or one they can manipulate easily.

Gregg, however is to be commended for refusing to accept the nomination if his replacement upset the current balance of the Senate.

But all this chummy chummy stuff with the GOP has much of Obama’s liberal, progressive, and social welfare base very uncomfortable. As he seeks to strip out some of the “future investments” from the stimulus bill for another day, many of the liberal beneficiaries are a’scramble to save their piece of the stimulus pie. Everyone from teachers to those in the arts are assuming the position, wearing their “I’m not expendable… I’m stimulus!” tee shirts.

As the Obama administration seeks ways to streamline his stimulus plan to appeal to Republican lawmakers, the president risks alienating key allies in his liberal base.

A range of interest groups are aggressively making the case that favored projects and programs deserve funding as part of the stimulus plan, even while the president and his aides scour the package for items they can eliminate.

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“In my judgment, [the push for funding] is as important as an election campaign,” said Randi Weingarten, president of the American Federation of Teachers.

Her group is bringing teachers from around the country to Washington Wednesday for a national lobbying day, to highlight the importance of maintaining $159 billion in education aid in the latest version of the stimulus plan.

“The economy and educational opportunities are completely and totally intertwined, both in the long-term and the short-term,” Weingarten said. “It’s absolutely critical to do it now. This is what leadership is about.”

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“It’s a big tension,” said Julian Zelizer, a political science professor at Princeton University. “The more he moves to the center, and to the right, the more he risks losing some of his core supporters, who have limited tolerance for these kinds of compromises.”

Thus far, the Dems have agreed to strip the anti-smoking funds, and Obama intervened on the House version and removed “$200 million that was to be set aside to refurbish the National Mall, and a Medicaid expansion that would have allowed all states to expand family-planning services, including contraception, for low-income women.”

These have the public health and womens groups – particularly NOW – all in an uproar, of course.

Dems and liberals alike are complaining that too much of the package is going towards tax cuts, and the Arts groups are circling the wagons and lobbying Obama to protect their cut.

In the meantime, the House Dems and Republican are both launching local media attack campaigns.

The House Democrats’ political arm is launching a radio, email, and telephone campaign against 28 House Republicans in 20 states who voted against the $819 billion economic-stimulus package last week.

The “Putting Families First” campaign will being airing Tuesday morning on drive time radio and run throughout the week. The Democratic Congressional Campaign Committee also said they will target three million voters with an email campaign and make 100,000 phone calls.

Targeted members in leadership include Minority Whip Eric Cantor of Virginia, Republican Policy Committee Chairman Thaddeus McCotter of Michigan, and National Republican Congressional Committee Chairman Pete Sessions of Texas.

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House Republicans, in turn, are targeting media in more than two dozen Democratic districts who voted in favor of the package Republicans criticize as fiscally irresponsible. The Democrats ad campaign is “nothing more than a desperate attempt to save face after House Democrats suffered a number of PR embarrassments for larding up a trillion-dollar bill disguised as a ‘stimulus’ package,” said National Republican Congressional Committee spokesman Ken Spain in a statement.

With all these events, I *might* (just might, mind you) to be inclined to believe that Obama may not be so convinced of his own liberal/progressive campaign talking points on financial cures. Afterall, were he so sure that the vast spending truly would improve the economy, he’d be standing firm and utilizing the Democrats power in Congress despite Republican opposition.

But then, he’s no doubt conscious of both public and media criticism. Using the power of Congress so early, and against the better judgment of most of the nation, is a waste of that power. By adding a GOP to his administration in charge of Commerce, and acquiescing to GOP demands to remove much of the pork, Obama’s inching to the right demonstrates flexibility, and certainly packs his political capital coffers… at least with some constituents and Congress members.

I have no doubts he’ll go for the rest of the gold in a new future attempt. But for now, I’m going to give Obama a cautious thumbs up for finding the middle ground on this contentious issue. But then, the devil will remain in the final details… for one man’s view of what’s considered stimulus may be another man’s pork.

Or, as Harry Reid said when sniping at Republicans for not falling into line without opposition:

“If we don’t [pass the bill], it’s not our fault, we’re trying,” Reid said. “The president has done a remarkable job covering all the bases on Capitol Hill.”

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Reid pushed back on GOP complaints that not all of the spending in the package was truly stimulative.

“Stimulus is in the eye of the beholder,” Reid said

Either Obama and Reid “behold” differently, or they’re saving their political capital pennies for another day.