Joe references lots of Democratic concern over the Obama economic stimulus plan.
What’s striking about it is that the pressure is coming from the left much more than the right. Sure, there are Blue Dog Democrats concerned about deficits. But Obama has assuaged the fears of them by speaking openly and frankly about the perils of long-term debt and by consulting with them on a regular basis. As for Republicans, there are plenty of dead-enders who don’t care about a workable solution. But of the conservatives who believe that tax cuts will genuinely stimulate the economy, most are happy that Obama is providing $300 billion in tax cuts – even if they’re unsure exactly how those cuts will be applied.
The biggest opposition, however, is coming from what we might call the Paul Krugman left. These folks have argued from the beginning that the biggest risk in a stimulus package is not debt or too much government, but not going far enough. We need to encourage ordinary Americans to spend money and we need to give them jobs right away.
I actually think Obama planned it this way. Typically, the President starts big and bargains down to a workable compromise spending amount. But this time the opposite is happening. Obama is letting the groundswell of public opinion and Congressional pressure push him toward a more robust stimulus package.
It’s noteworthy that this is exactly what happened during the New Deal. FDR offered relatively conservative policies in the 1932 campaign, and focused almost entirely on solidifying the banks in 1933. But then came more pressure for interventionist government and job creation and, consequently, the WPA, PWA, CCC and the rest. He was pushed to the left after he took office.
I suspect that will be true of Obama too. Like FDR – or even Lincoln, who pushed a very moderate anti-abolitionist course in the first year of the Civil War – Obama is willing to be pushed by events to the left.
This is the exact opposite of what Bill Clinton did. Clinton tried to push through liberal policies that many conservative Democrats opposed. The Republicans were perfectly positioned to hold firm and push back against Clinton.
2009 is not 1993. It is more like 1935.