Legal Commentary

Jimmy Carter Had It Hard Too

By Big Tent Democrat

Being President of the United States at any time is probably the most difficult job in the world. Becoming President after the worst President in history left the nation in shambles puts Barack Obama in the position of being able to say his job is as difficult as any person's since FDR. That and 3 dollars will get you a cup of coffee at Starbucks. Let me put it bluntly, saying the job is hard at this point will do no one a bit of good - politically or otherwise. Ezra Klein tries anyway:

Noam Scheiber compares the task facing deficit hawks in 2009 to the task facing deficit hawks in 1993 [. . .] As Noam [. . .] explain[s], one of the difficulties facing the Obama team is that it was a lot easier to see how to kick-start the economy in 1993 than in 2009. [. . .]

And it's a lot easier to see how to kickstart the economy now than it was in 1933. You see, Keynes had not yet been proven right. More . . .

It's not that the Obama Administration does not know what to do - I'm pretty sure they do - it is that they are unwilling to take the political risks to try and do it. Kevin Drum explains:

I imagine that no one in the administration will ever admit this, even off the record, but the main reason for inaction is almost certainly because they believe there's zero chance of getting any of this stuff done. Politically, then, there's nothing but downside here: yet another long, bruising battle with both Congress and the Fed, ending in total defeat. If everyone in the administration were utterly convinced that the economy was completely sunk otherwise, they might risk that. But no one in his right mind will risk it for anything less.

I imagine folks around FDR were telling hm the same thing. In fact, I know they were. See Morganthau, Henry. A LEADER and a genius politician would know that there is no choice but to try. And if you fail, try something else. In any event, I always get mad at the attempts to prop up Obama at Bill Clinton's expense. Therefore, once again, I will remind folks what Bill Clinton, he of the 43% mandate, did in 1993:

I have written about this before, but in 1993, Bill Clinton pushed through the most progressive legislation the US has had since the Johnson Administration. It was called, prosaically, the Omnibus Budget Reconciliation Act. What did it do?

It created 36 percent and 39.6 income tax rates for individuals. [up from 33% top rate]

It created a 35 percent income tax rate for corporations. [up from 28%]

The cap on Medicare taxes was repealed. [Making it less regressive.]

Transportation fuels taxes were raised by 4.3 cents per gallon.

[Helpful for the environment.]

The taxable portion of Social Security benefits was raised.[Making wealthier seniors pay more in taxes.]

The phase-out of the personal exemption and limit on itemized deductions were permanently extended. [Again, making wealthier Americans pay more in taxes.]

Part IV Section 14131: Expansion of the Earned Income Tax Credit and added inflation adjustments [In essence eliminating taxes for the working poor.]

Clinton's initiative passed by the barest of margins - 218-216 in the House and with a tiebreaking vote from Vice President Al Gore in the Senate.

What was the effect of Clinton's initiative? You know the usual litany - 8 years of economic expansion, the creation of 22 million jobs, etc.

How about a little of that now in 2009?

Speaking for me only

Full post as published by TalkLeft on December 11, 2009 (boomark / email).