A Radical Presidency, by Daniel Henninger
WSJ, Feb 26, 2009
When Barack Obama delivered his 44-minute acceptance speech in August among the majestic columns of Denver, it was apparent his would be an expansive presidency. Some wondered whether his solutions for a very long list of problems was too ambitious. On Tuesday, before Congress, he made clear across 52 minutes that the economic downturn would not deflect him from his Denver vision.
Instead, the economic crisis, as it did for Franklin D. Roosevelt, will serve as a stepping stone to a radical shift in the relationship between the people and their government. It will bind Americans to their government in ways not experienced since the New Deal. This tectonic shift, if successful, will be equal to the forces of public authority set in motion by Lyndon Johnson's Great Society. The Obama presidency is going to be a radical presidency.
Barack Obama is proposing that the U.S. alter the relationship between the national government and private sector that was put in place by Ronald Reagan and largely continued by the presidencies of Bill Clinton and the Bushes. Then, the private sector led the economy. Now Washington will chart its course.
Mr. Obama was clear about his intention. "Our economy did not fall into this decline overnight," he said. Instead, an "era" has "failed" to think about the nation's long-term future. With the urgency of a prophet, he says the "day of reckoning has arrived." The president said his purpose is not to "only revive this economy."
In fact, people would probably coronate Mr. Obama if he merely revived the Dow Jones Industrial Average. The Dow's fall since the Sept. 14 collapse of Lehman Brothers and sale of Merrill Lynch to Bank of America has eviscerated the net wealth of Americans across all incomes. Many are in the most dispirited state in their lifetimes.
Yesterday, the post-Obama Dow lost another percentage point. No matter. In his worldview, "short-term gains were prized over long-term prosperity." His speech did include a plan to address the market crisis. It consists of a program to support consumer and small-business loans; a mortgage refinancing mechanism; and the "full force of the government" to restart bank lending. Mr. Obama delivered that last element with a rather crude pistol-whipping of the nation's bankers and CEOs, thousands of whom have been operating their companies in a responsible, productive way.
This was just the prelude. Notwithstanding the daily nightmares of the economic crisis, now is the time to "boldly" rebuild the nation's "foundation." The U.S. budget he released today isn't just a budget. "I see it as a vision for America -- as a blueprint for our future." With it, Mr. Obama becomes the economy's Architect-in-Chief.
This blueprint will reshape energy and health. With energy, it proposes a gradual tear-down of the existing energy sector and its replacement with renewables. This vision has foundered before on the price disadvantage of noncarbon energy. Mr. Obama says he will "make" renewable energy profitable. He'll do this with a cap-and-trade system for carbon. The goal here is to "make" renewables economic by driving up the price of carbon.
The once-private auto industry, now run by federal "car czar" Steve Rattner, a reformed investment banker, is about to be ordered to produce "more efficient cars and trucks." Americans, like it or not, will buy these government-designed vehicles with government-supported car loans.
Mr. Obama believes health-care costs cause a bankruptcy "every 30 seconds" and will drive 1.5 million Americans from their homes this year. Therefore, the budget's vision on health is "historic" and a "downpayment" toward comprehensive health insurance. This "will not wait another year," he said.
He announced "tax-free universal savings accounts" as a solution to Social Security's crisis. This is a savings plan supported by federal matching contributions automatically deposited in individual accounts.
Mr. Obama acknowledged that this spending -- which in the public sector's new vocabulary is always "investment" -- will be costly. His read-my-lips moment was that no family with an income under $250,000 will pay a "single dime" in new taxes to support the construction of this new federal skyscraper. If that's still true in 2015, Mr. Obama will be walking back and forth across the Potomac River.
He told Congress he does not believe in bigger government. I don't believe that. It's becoming clear that the private sector is going to be demoted into a secondary role in the U.S. system. This isn't socialism, but it is not the system we've had since the early 1980s. It would be a reordered economic system, its direction chosen and guided by Mr. Obama and his inner circle.
Gov. Bobby Jindal's postspeech reply did not come close to recognizing the gauntlet Mr. Obama has thrown down to the opposition. Unless the GOP can discover a radical message of its own to distinguish it from the president's, it should prepare to live under Mr. Obama's radicalism for at least a generation.
Governor Bobby Jindal’s Republican Address: "Americans Can Do Anything"
ReplyDeleteTuesday, February 24, 2009
http://www.gop.com/News/NewsRead.aspx?Guid=da3e1c13-c3c3-494f-9232-4a8cbd69ede4
"Good evening. I'm Bobby Jindal, Governor of Louisiana.
Tonight, we witnessed a great moment in the history of our Republic. In the very chamber where Congress once voted to abolish slavery, our first African-American President stepped forward to address the state of our union. With his speech tonight, the President completed a redemptive journey that took our nation from Independence Hall ... to Gettysburg ... to the lunch counter ... and now, finally, the Oval Office.
Regardless of party, all Americans are moved by the President's personal story - the son of an American mother and a Kenyan father, who grew up to become leader of the free world. Like the President's father, my parents came to this country from a distant land. When they arrived in Baton Rouge, my mother was already 4 ½ months pregnant. I was what folks in the insurance industry now call a 'pre-existing condition.' To find work, my dad picked up the yellow pages and started calling local businesses. Even after landing a job, he could still not afford to pay for my delivery - so he worked out an installment plan with the doctor. Fortunately for me, he never missed a payment.
As I grew up, my mom and dad taught me the values that attracted them to this country - and they instilled in me an immigrant's wonder at the greatness of America. As a child, I remember going to the grocery store with my dad. Growing up in India, he had seen extreme poverty. And as we walked through the aisles, looking at the endless variety on the shelves, he would tell me: 'Bobby, Americans can do anything.' I still believe that to this day. Americans can do anything. When we pull together, there is no challenge we cannot overcome.
As the President made clear this evening, we are now in a time of challenge. Many of you listening tonight have lost jobs. Others have seen your college and retirement savings dwindle. Many of you are worried about losing your health care and your homes. And you are looking to your elected leaders in Washington for solutions.
Republicans are ready to work with the new President to provide those solutions. Here in my state of Louisiana, we don't care what party you belong to if you have good ideas to make life better for our people. We need more of that attitude from both Democrats and Republicans in our nation's capital. All of us want our economy to recover and our nation to prosper. So where we agree, Republicans must be the President's strongest partners. And where we disagree, Republicans have a responsibility to be candid and offer better ideas for a path forward.
Today in Washington, some are promising that government will rescue us from the economic storms raging all around us.
Those of us who lived through Hurricane Katrina, we have our doubts.
Let me tell you a story.
During Katrina, I visited Sheriff Harry Lee, a Democrat and a good friend of mine. When I walked into his makeshift office I'd never seen him so angry. He was yelling into the phone: 'Well, I'm the Sheriff and if you don't like it you can come and arrest me!' I asked him: 'Sheriff, what's got you so mad?' He told me that he had put out a call for volunteers to come with their boats to rescue people who were trapped on their rooftops by the floodwaters. The boats were all lined up ready to go - when some bureaucrat showed up and told them they couldn't go out on the water unless they had proof of insurance and registration. I told him, 'Sheriff, that's ridiculous.' And before I knew it, he was yelling into the phone: 'Congressman Jindal is here, and he says you can come and arrest him too!' Harry just told the boaters to ignore the bureaucrats and start rescuing people.
There is a lesson in this experience: The strength of America is not found in our government. It is found in the compassionate hearts and enterprising spirit of our citizens. We are grateful for the support we have received from across the nation for the ongoing recovery efforts. This spirit got Louisiana through the hurricanes - and this spirit will get our nation through the storms we face today.
To solve our current problems, Washington must lead. But the way to lead is not to raise taxes and put more money and power in hands of Washington politicians. The way to lead is by empowering you - the American people. Because we believe that Americans can do anything.
That is why Republicans put forward plans to create jobs by lowering income tax rates for working families ... cutting taxes for small businesses ... strengthening incentives for businesses to invest in new equipment and hire new workers ... and stabilizing home values by creating a new tax credit for home-buyers. These plans would cost less and create more jobs.
But Democratic leaders in Congress rejected this approach. Instead of trusting us to make wise decisions with our own money, they passed the largest government spending bill in history - with a price tag of more than $1 trillion with interest. While some of the projects in the bill make sense, their legislation is larded with wasteful spending. It includes $300 million to buy new cars for the government, $8 billion for high-speed rail projects, such as a 'magnetic levitation' line from Las Vegas to Disneyland, and $140 million for something called 'volcano monitoring.' Instead of monitoring volcanoes, what Congress should be monitoring is the eruption of spending in Washington, DC.
Democratic leaders say their legislation will grow the economy. What it will do is grow the government, increase our taxes down the line, and saddle future generations with debt. Who among us would ask our children for a loan, so we could spend money we do not have, on things we do not need? That is precisely what the Democrats in Congress just did. It's irresponsible. And it's no way to strengthen our economy, create jobs, or build a prosperous future for our children.
In Louisiana, we took a different approach. Since I became governor, we cut more than 250 earmarks from our state budget. And to create jobs for our citizens, we cut taxes six times - including the largest income tax cut in the history of our state. We passed those tax cuts with bipartisan majorities. Republicans and Democrats put aside their differences, and worked together to make sure our people could keep more of what they earn. If it can be done in Baton Rouge, surely it can be done in Washington, DC.
To strengthen our economy, we need urgent action to keep energy prices down. All of us remember what it felt like to pay $4 at the pump - and unless we act now, those prices will return. To stop that from happening, we need to increase conservation ... increase energy efficiency ... increase the use of alternative and renewable fuels ... increase our use of nuclear power - and increase drilling for oil and gas here at home. We believe that Americans can do anything - and if we unleash the innovative spirit of our citizens, we can achieve energy independence.
To strengthen our economy, we also need to address the crisis in health care. Republicans believe in a simple principle: No American should have to worry about losing their health coverage - period. We stand for universal access to affordable health care coverage. We oppose universal government-run health care. Health care decisions should be made by doctors and patients - not by government bureaucrats. We believe Americans can do anything - and if we put aside partisan politics and work together, we can make our system of private medicine affordable and accessible for every one of our citizens.
To strengthen our economy, we also need to make sure every child in America gets the best possible education. After Katrina, we reinvented the New Orleans school system - opening dozens of new charter schools, and creating a new scholarship program that is giving parents the chance to send their children to private or parochial schools of their choice. We believe that, with the proper education, the children of America can do anything. And it should not take a devastating storm to bring this kind of innovation to education in our country.
To strengthen our economy, we must promote confidence in America by ensuring ours is the most ethical and transparent system in the world. In my home state, there used to be saying: At any given time, half of Louisiana is under water - and the other half is under indictment. No one says that anymore. Last year, we passed some of the strongest ethics laws in the nation - and today, Louisiana has turned her back on the corruption of the past. We need to bring transparency to Washington, DC - so we can rid our Capitol of corruption ... and ensure we never see the passage of another trillion dollar spending bill that Congress has not even read and the American people haven't even seen.
As we take these steps, we must remember for all our troubles at home, dangerous enemies still seek our destruction. Now is no time to dismantle the defenses that have protected this country for hundreds of years, or make deep cuts in funding for our troops. America's fighting men and women can do anything. And if we give them the resources they need, they will stay on the offensive ... defeat our enemies ... and protect us from harm.
In all these areas, Republicans want to work with President Obama. We appreciate his message of hope - but sometimes it seems we look for hope in different places. Democratic leaders in Washington place their hope in the federal government. We place our hope in you - the American people. In the end, it comes down to an honest and fundamental disagreement about the proper role of government. We oppose the National Democrats' view that says -- the way to strengthen our country is to increase dependence on government. We believe the way to strengthen our country is to restrain spending in Washington, and empower individuals and small businesses to grow our economy and create jobs.
In recent years, these distinctions in philosophy became less clear - because our party got away from its principles. You elected Republicans to champion limited government, fiscal discipline, and personal responsibility. Instead, Republicans went along with earmarks and big government spending in Washington. Republicans lost your trust - and rightly so.
Tonight, on behalf of our leaders in Congress and my fellow Republican governors, I say: Our party is determined to regain your trust. We will do so by standing up for the principles that we share ... the principles you elected us to fight for ... the principles that built this into the greatest, most prosperous country on earth.
A few weeks ago, the President warned that our nation is facing a crisis that he said 'we may not be able to reverse.' Our troubles are real, to be sure. But don't let anyone tell you that we cannot recover - or that America's best days are behind her. This is the nation that cast off the scourge of slavery ... overcame the Great Depression ... prevailed in two World Wars ... won the struggle for civil rights ... defeated the Soviet menace ... and responded with determined courage to the attacks of September 11, 2001. The American spirit has triumphed over almost every form of adversity known to man - and the American spirit will triumph again.
We can have confidence in our future - because, amid today's challenges, we also count many blessings: We have the most innovative citizens ...the most abundant resources ... the most resilient economy ... the most powerful military ... and the freest political system in the history of the world. My fellow citizens, never forget: We are Americans. And like my dad said years ago, Americans can do anything.
Thank you for listening. God bless you. And God bless America."