Saturday, August 7, 2010

An Odd Parallelism Within Obama's Admin

Here is an interesting bit from a NY Review of Books article by Frank Rich looking at Jonathan Alter's book The Promise: President Obama, Year One. I'm especially taken by the parallel between Obama's economic team and the McCrystal team which I've bolded:
Obama complains that he doesn’t get enough credit for stabilizing an economy that was teetering toward another Great Depression when he arrived in office. “It’s very hard to prove a counterfactual, where you say, ‘You know, things really could have been a lot worse here,’” as he puts it. He has a point. The stimulus package, actually five ambitious pieces of legislation packaged together for political expediency, was the largest economic recovery bill in American history, bigger in constant dollars than any program of FDR’s first hundred days. It gets no respect because it left no New Deal–style legacy of grand public works and did more to prevent jobs being lost—as more than 2.6 million were in 2008—than it did to add new ones.

Yet it’s hard not to wonder if much more would have been accomplished, both substantively and politically, had Obama’s economic principals, Timothy Geithner and Lawrence Summers, been more open to ideas not of their own authorship and more capable of playing with others, including a public that still hardly knows either of them. Obama “apparently never considered appointing a banker or Fed governor from outside the East Coast who knew finance but was less connected to the policies that caused the crisis,” Alter writes. The homogenous team he chose “all knew one another and all looked at the world through nearly identical eyes.” Once in place in Washington, they would all underestimate the threat of rising unemployment, be blindsided by the populist anger rising outside the capital, and even fail to predict the no-brainer popularity of the “cash for clunkers” program. Their paramount group-think lapse—their inability “to think more boldly about creating jobs fast”—still haunts the administration. A White House job summit didn’t materialize until December 2009, nearly a year too late.

The Promise depicts a carelessness and dysfunctionality in the economic team that at times matches that revealed by Rolling Stone in the military and civilian leadership of the team managing the Afghanistan war. Geithner’s inexplicable serial income tax delinquencies, as elucidated by Alter, should have disqualified him for Treasury secretary just as Stanley McChrystal’s role in the Pentagon’s political coverup of Pat Tillman’s friendly fire death should have barred him from the top military job in Afghanistan. Summers’s Machiavellian efforts to minimize or outright exclude the input of ostensible administration economic players like Paul Volcker, Austan Goolsbee, and Christina Romer seem to have engaged his energies as much as the policy issues at hand.

In April 2009, at Obama’s insistence, a group of economists that Summers had blocked from the Oval Office, including Volcker, Paul Krugman, Joseph Stiglitz, and Alan Blinder, was invited to a White House dinner. That colloquy has been cited ever since by White House aides in response to complaints that the administration’s economic circle is too insular. The dinner was a one-off, however, and the liberal economists’ ideas about tougher financial reform and a more ambitious stimulus package have languished.
Obama may have entered the White House with the intention of assembling a Lincolnesque “team of rivals,” but Summers subverted that notion by making himself chief packager and gatekeeper for any dissenting arguments about economic policy—all, he claimed, to spare the President from meeting with “long-winded people.” Lincoln’s “team of rivals” reported directly to Lincoln, but, as one source told Alter, Summers so skewed the process in this White House that it was like “a team of rivals reporting to Edwin Stanton, Lincoln’s prideful secretary of war.” Even Warren Buffett, a supporter who had spoken to Obama weekly during the fall of 2008, “found himself mysteriously out of touch with the new president” once he took office.

Obama was now imprisoned within the cozy Summers-Geithner group “and it would be increasingly difficult for him to see beyond its borders.” This “disconnection from the world,” Alter concludes, was not due to ideology or the clout of special interests but was instead “the malign consequence of the American love of expertise, which, with the help of citadels of the meritocracy, had moved from a mere culture to something approaching a cult.” For all Obama’s skepticism of cant, he was “in thrall to the idea that with enough analysis, there was a ‘right answer’ to everything. But a right answer for whom?”
Both the author, Eric Alter, and the reviewer, Frank Rich, are most positive in their evaluation of Obama than I can be. I see a man who promised much and has delivered little, a man who supposedly is "quick to learn" showing an obstinancy in following failed policy directions well beyond the point of initial hints at failure, a man who is "cool" and worse: distant from the public he claims to want to lead. This past week's trip by Michele Obama to Spain is just another indicator of the tone deafness of the Obama administration to the suffering in America. Michele Obama had urged Americans to vacation on the Gulf in the wake of the disaster there. But obviously Michele thinks her advice is for "the little people" and need not be heeded by her and her family. Little thinks like this bother me immensely.

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