Tim Pawlenty is a mainstream conservative governor in a traditionally liberal state. When I use the term “mainstream,” I mean simply that he is in the mainstream of Minnesota conservatism – decidedly less conservative than the heart of Republicanism in the south, but conservative enough for most of the rest of the GOP. This alone gives him a decent shot as an alternative to either Palin or Romney in the 2012 primaries.

Reading this long interview in Esquire, I was struck by the governor’s pragmatism and unflappability. Esquire’s Mark Warren threw enough bait into the water that Pawlenty could have easily blundered in his responses. Instead, the Minnesota governor coolly maneuvered through the minefields and came off looking reasonable, and thoughtful.

One thing is for sure; Pawlenty has a very good idea of where the GOP went wrong during their time in the majority:

“The Republicans had their shot not long ago to address the real needs and concerns of everyday Americans, and they blew it…. Over the time that they were there and had the leadership opportunity, they blew it. We got fired for a reason.”

“The party got into a whole bunch of corruption and personal scandals that weren’t compatible with the principles it claimed to stand for.”

“We just lost our way. You can’t say that your hallmark issues are that we’re going to control spending, keep taxes low, and make government accountable, and then go to Washington and do the opposite…. Let’s face it, when Republicans had total control over it, they didn’t do what they said they were gonna do.”

“The marketplace measurement in politics is something called an election…. And in 2006 and 2008, the marketplace was telling the Republicans, We prefer the products and services of your competitors.”

That may still be the case in 2010 if the GOP tries to recycle an agenda better left in the 1980’s. Conservative principles may be deathless, but issues are not. Compared to Palin, Pawlenty has a lot going for him in this regard. Where Palin has a laundry list of resentments that resonate with the base, Pawlenty has a record of achieving concrete results by applying conservative principles to governance. That puts him lightyears ahead of Palin in my book.

Like most GOP governors, Pawlenty is a font of new and innovative ideas when it comes to applying conservative principles to a governing philosophy. Education, health care, mass transit, and other issues important at the state level were addressed to varying degrees by Pawlenty by growing government as little as possible. He also addressed budget shortfalls by generally cutting spending and not raising taxes, although he did raise the cigarette tax and tuition at Minnesota state schools among other “fee” increases to close the budget deficit.

Along with Indiana’s Mitch Daniels, and now Ambassador to China, former Utah governor John Huntsman, Pawlenty represents a new kind of Republican governor – pragmatic leadership buttressed by maintaining good relationships with the legislature, and plugging in conservative policy ideas to address the problems of ordinary people.

If this be the future of Republicanism, bring it on.

This pragmatic conservatism comes through in the Esquire interview as Pawlenty addressed what he would have done about the financial meltdown, a stim bill, and the bailouts:

Whether the threats or doomsday scenarios that were painted were real or partially real or not real at all. We won’t know the answer to that, but we do know that some very bright people said that we faced doomsday, and there were other very bright people who said that, at the very least, the danger was overstated, and this notion that they were too big to fail was untested or untrue.

I’ve argued, at least as it related to the stimulus bill as opposed to TARP, that there were things that we could have and should have done, but it should have been much more targeted. For example, instead of spending $800 billion in a stimulus package, I think we would have gotten much more bang for the buck if we would have done two simple things: focused on tax cuts that would have put cash immediately into the average citizen’s pocket, and two, put money into bread-and-butter infrastructure projects like roads and bridges that could be done quickly. Of the $800 billion stimulus package, only about $50 billion, give or take, actually went into roads and bridges. It was a paltry amount compared to the overall size of the bill.

As for the other bailouts, I did not support the car-company bailout, either. They should have been allowed to go bankrupt — in fact, they [entered] bankruptcy, most of ’em. That’s the way that they’re going to get most effectively restructured. And I think the same could be said for many of the financial institutions. The idea that we’re gonna bail out every major bank in the country with the exception of Lehman Brothers is ridiculous. Why let Lehman fail and not all the others? These markets have to correct. And the answer can’t be for every problem that emerges as a result of reckless behavior, the government’s gonna come in and bail everybody out. I was talkin’ to people this morning who run small businesses. Where’s their bailout?

The narrative as it is presented today – the trillions we spent on TARP, bailing out the banks, the auto takeover, and the stimulus package – is that without these measures, we would have had a catastrophic, worldwide depression.

As Pawlenty says later, “We’ll never know” if that scenario would have played out if we had allowed the banks to go into bankruptcy, along with the GM and Chrysler (who, as the governor points out, went into bankruptcy anyway), or if the stim, bill had been smaller and more targeted in its spending and tax cuts. Yes, there are many economists who agree with Paul Krugman that Obama saved the world, but there are also many others who disagree to one degree or another. Why their criticisms should be any more or less valid than the dominant narrative that has emerged about these government actions mitigating a crisis is a mystery.

Nor do I believe that the choice was between doing nothing and having the government massively intervene the way it did. That’s a political take on what might have been accomplished short of the trillions in bailout monies advanced by the Fed and the government. The fact is, there was talk at the time of managed bankruptcies, forced mergers, and other measures short of simply handing over money to companies that it was claimed were “too big to fail.” It was never tried, so it is impossible to say if it would have accomplished much of the same thing; i.e., an economy in the toilet but a ruinous depression avoided.

I think Pawlenty is the man to make that case. He supports regulation of the banks, a modified stimulus bill, health care reform, but a firm belief in the idea that market forces are what underlies the American economy:

I think both sides have people who have genuine feelings and beliefs about what they think the proper direction of the country should be. I just think the other side’s wrong. I don’t question motives or assign some sort of label. But I think what President Obama and the Democratic Congress are offering is a dangerous direction for the country. Not just because it’s gonna cost us more, not just because taxes are gonna go up, not just because it expands government, but because of what it does to the American spirit. As I view it, there is an American spirit that is associated with the kinds of attitudes about taking risk, about taking responsibility, about a sense of respect for the private market and the power that it has in creating and rewarding wealth. The government doesn’t do that — the government redistributes, but it doesn’t actually create wealth or prosperity. And the health-care debate is a pretty good proxy for this struggle between these two views. And in the case of the Republicans, what they see and what they’re rightly concerned about is that it’s another increment down the road toward government taking over more and more things. And it worries people.

Is Obama a socialist?

You know, I don’t think name-calling is helpful. I’ve done my share of that, so I’m not Pollyannaish about how the political process works. But as a general proposition, I think these are serious times, the country’s in significant danger, and I think we need people who are thoughtful. We’re gonna have sharp differences, but we need to debate those in a way that’s constructive and civil. I think President Obama is governing as a movement liberal. I don’t think that rises to the level of being a socialist.

This puts Pawlenty in the mainstream of conservatism in about 75% of the country – and proves that he can handle a hostile interviewer. (Warren spent a lot of time making statements that defended Obama, much less time asking Pawlenty any questions that might reveal something about the man.)

Beyond that, note that he makes a classic defense of conservative principles against the onslaught of liberal orthodoxy on growing the size of government to meet challenges. And he frames this argument in terms of American exceptionalism – the “American Spirit” he calls it – while clearly delineating between the role of government and the role of private citizens.

Clearly, Pawlenty has given these issues and concepts a great deal of thought. This comes out in his statement on why he might run in 2012:

I think the country’s in trouble. And I think I have a pretty clear sense of the values and principles that have made this country great. I’ve had a chance to govern and lead with those in mind, with some significant success in Minnesota. And I think the country needs that kind of leadership and insight and perspective. So through my PAC, I’m going to share my beliefs across the country. And I’m gonna take the next year to see how that goes and make my decision late in 2010 or in early 2011.

His bid is still a very long shot. He will not generate the kind of excitement that Sarah Palin would if she chooses to run, nor will he possess the bottomless resources of a Romney should Mitt choose to throw his hat into the ring again. He will not capture much of the Republican base, nor attract much interest in the south generally speaking. He is not an inspiring speaker by any means.

But Pawlenty is a candidate brimming with ideas, and an idea of what kind of leadership the country needs right now. How far that will take him is anyone’s guess.