http://www.ibdeditorials.com/IBDArticles.aspx?id=313890516143932        
 

Obama's 'Shift' To The Center Masks Agenda


By CHARLES
<http://www.ibdeditorials.com/AuthorProfile.aspx?id=255302646710074>
KRAUTHAMMER | Posted Thursday, December 11, 2008 4:20 PM PT 

Barack Obama has garnered praise from center to right - and has highly
irritated the left - with the centrism of his major appointments. Because
Obama's own beliefs remain largely opaque, his appointments have led to the
conclusion that he intends to govern from the center.

Obama the centrist? I'm not so sure.

Take the foreign policy team: Hillary Clinton, James Jones, and Bush
holdover Robert Gates. As centrist as you can get. But the choice was far
less ideological than practical.

Obama has no intention of being a foreign policy president. Unlike, say,
Nixon or Reagan, he does not have aspirations abroad. He simply wants quiet
on his eastern and western fronts so that he can proceed with what he really
cares about - his domestic agenda.

Similarly his senior economic team, the brilliant trio of Tim Geithner,
Larry Summers and Paul Volcker: centrist, experienced and mainstream. But
their principal task is to stabilize the financial system, a highly
pragmatic task in which Obama has no particular ideological stake.

A functioning financial system is a necessary condition for a successful
Obama presidency. As in foreign policy, Obama wants experts and veterans to
manage and pacify universes in which he has little experience and less
personal commitment. Their job is to keep credit flowing and the world at
bay so that Obama can address his real ambition: to effect a domestic
transformation as grand and ambitious as Franklin Roosevelt's.

As Obama revealingly said just last week: "This painful crisis also provides
us with an opportunity to transform our economy to improve the lives of
ordinary people." Transformation is his mission. Crisis provides the
opportunity. The election provides him the power.

The deepening recession creates the opportunity for federal intervention and
government experimentation on a scale unseen since the New Deal. A
Republican administration has already done the ideological groundwork with
its unprecedented intervention, culminating in the forced partial
nationalization of nine of the largest banks, the kind of stuff that happens
in Peronist Argentina with a gun on the table.

Additionally, Henry Paulson's invention of the number $700 billion forever
altered our perception of imaginable government expenditure. Another $20
billion for Citigroup? Lunch money.

Moreover, no one in Congress even pretends that spending should be pay as
you go (i.e., new expenditures balanced by higher taxes or lower spending),
as the Democrats disingenuously promised when they took over Congress last
year.

Even some conservative economists are urging stimulus (although structured
far differently from Democratic proposals). And public opinion, demanding
action, will buy any stimulus package of any size. The result: undreamed
amounts of money at Obama's disposal.

To meet the opportunity, Obama has the political power that comes from a
smashing electoral victory. It not only gave him a personal mandate. It
increased Democratic majorities in both houses, thereby demonstrating
coattails and giving him clout. And by running on nothing much more than
change and (often contradictory) hopes, he has given himself enormous
freedom of action.

Obama was quite serious when he said he was going to change the world. And
now he has a national crisis, a personal mandate, a pliant Congress, a
desperate public - and, at his disposal, the greatest pot of money in
galactic history. (I include here the extrasolar planets.)

It begins with a near $1 trillion stimulus package. This is where Obama will
show himself ideologically. It is his one great opportunity to plant the
seeds for everything he cares about: a new green economy, universal health
care, a labor resurgence, government as benevolent private-sector "partner."
It is the community organizer's ultimate dream.

Ironically, when the economy tanked in mid-September, it was assumed that
both presidential candidates could simply forget about their domestic
agendas because with $700 billion drained by financial system rescues, not a
penny would be left to spend on anything else.

On the contrary. With the country clamoring for action and with all
psychological barriers to government intervention obliterated (by the
conservative party, no less), the stage is set for a young, ambitious,
supremely confident president - who sees himself as a world-historical
figure before even having been sworn in - to begin a restructuring of the
American economy and the forging of a new relationship between government
and people.

Don't be fooled by Bob Gates staying on. Obama didn't get elected to manage
Afghanistan. He intends to transform America. And he has the money, the
mandate and the moxie to go for it.

 


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