Voice, Leadership, Messages, Realities: Living in a Tough World
The latest Real Clear Politics poll has it like this: Barry 46.3, John-boy 43.7, Difference 2.6(B). Not
much of a gap and one that's narrowing, even after the triumphal world tour. We'll have to see how things play out of course. Every "objective" indicator from dislike of Bush, to the state of the economy, to accelerating voter anxiety about the future to the successes in Iraq would favor Barry. What's going on here ? Well some of, if not most of it, is the dilemmas and lack of clarity we already discussed (Moral Clarity ? Good Intentions, Muddy Proposals, Directional Obscurities). And the cartoon, puts it in perspective. A caveat - while the cartoonist probably intended to take a shot at Barry IMHO it applies to John-boy as well, just differently.
My bottom line is this - we have a pretty clear grip on the major policy challenges, both here on the blog in some depth and analytical fashion and among the general public. Who may be less analytical but has a darn good grasp of what the real challenges are. Where the rub's turning into pain and how serious it is. What we don't have a clear grip on is what either candidate is proposing to do about it. Let me wrap a couple of pictures around that, just for fun, illustration and to riff off of.
Policy Directions
First, just as a reminder and to frame the discussion, here's how we see the major policy challenges. And our recommendations for strategic directions to follow to dealing with them - basic or fundamental principles if you will. Now the categories and descriptions got built up out of the way things work - reality as best we can judge - and the way people end up thinking about these things, even when it's not so crisp. The directional recommendations are what our analysis suggests offer the best and most workable objectives to pursue at a high level. But of course the devil's in the details.
Candidate Evaluation
So how're the candidates doing against the blueprint ? And how will/are people judging them ? The next picture we put together to try and frame those question from a couple of direction. As the last post discussed (Rational Voters, Public Choice, Economics and Futures) nobody's got the time or resources to do detailed evaluations on all the issues and alternatives, the candidates and their non-existent proposals. So we all tend to the next best thing - judging on Vision, Leadership and Policy Principles. More or less - and it's not a bad way to go. If you combine that list with the policy principles blueprint you might end up with something like this. And apply it to the two candidates you might end up with the two-color triangles. Which aren't entirely fair but heh, what'd you expect for free graphics. But aren't entirely inaccurate either - Barry is a lot stronger on the Vision thing but sure seems to fade out fast on anything below that. On the other hand John-boy gets to down to brass tacks on a few things where he's comfortable (his paint scheme should have been spottier for sure) but sure fades fast when trying to explain how he sees it all tying together. If Barry is running on eloquence John-boy's running on true-grit and track record and both might just be running on empty.
As Good As It Gets ??? Where's Ronnie When You Need Him ?
That's a complaint, not a diagnosis and not a treatment for sure but it may be as good as it gets. Going back to the "Policy Principles" chart we're in a world where there are major structural changes in every category. It's a brave new, multi-polar world where peace and love haven't broken out but there are major rising powers who need to be incorporated constructively into some new system. Meanwhile we're experiencing major structural shifts in the economy which is making people legitimately anxious about future growth prospects. And it's also leading to major pressures on society that are making people less comfortable with the old American verities. The only good news IOHO is that the culture wars have been back-burnered as the seriousness of these challenges mount up. The last time we faced a range and depth of problems this severe was in 1980 when we had an imploding economy, a failing foreign policy that was losing the Cold War and a mounting backlash against the failed social engineering of the '60s and the associated libertinism attacking our core historic values. And Ronnie managed to step forward, calm everybody down by offering a vision for the future and specific action plans that did address many of these problems. In a small way he shared Lincoln's abilities in finding simple explanations for complex problems and converting them into convincing stories. But also for the record he was badly wrong about much of his economics and we're still living with the consequences. On the other hand there was a lot he was right about; for example he and Volcker broke the back of inflation and restored a growing economy though supply-side turned out to be voodoo economics indeed.
In other words he had a VOICE - he could tell us straight out what he thought was going on and what we ought to do about it, in a way we could understand and find convincing...or not.
Voice and Leadership
And therein lies the problem - neither of the candidates has found their VOICES as yet. They haven't come up with simple, clear and compelling explanations of who they are, what they stand for, what they think we should do and how we should go about. That's it in a nutshell.
But let's set the record straight. The scope and seriousness of the problems we face now are not anything like the ones Reagan faced and those were nothing in comparison to what we faced at prior major turning points in the history of the Republic. So let's everyone get a grip - we got thru those. Maybe not with style and grace but overall not ineffectively either. We'll muddle thru these somehow as well - if nothing else by definition. The question then becomes will we like the outcome ?
Part of the problem is that for a long time politicians have been successful telling us what the think we want to hear because we haven't insisted on hearing painful truths. Well the fact of the matter is that the world is what it is and we're in a better position, now and for decades than almost any other entity. But there are serious challenges. The one of most concern is the economy and there aren't any magic answers, there especially. Most of the problems we face with regard to the Economy, and the associated problems with Energy and Education are the result of deep structural flaws that have been accumulating for decades. They are addressable....just not quickly, easily or cheaply. So ?
The bottomline of the bottomlines is that the central challenge is the short- and long-term economic issues. And neither candidate has demonstrated any comfort, competence or command there. Despite, at least in Barry's case, having as fine a composite team of business leaders and economists at his disposal as any I've ever known to be assembled. And John-boy's on the whole ain't to bad either. But that's in a nutshell - they need to find their VOICES on the Economy and we're running out of time.
And with only a little over three months left this may indeed be as good as it gets.
Worldviews vs. Realities
The problems afflicting discontented America Regardless of their political beliefs, American voters are in a horrible mood this year. Democrats are sick of George Bush. Republicans are sick of the Democrats running Congress. Everyone worries about Iraq, either because they think the war should never have been fought, or because of the long, costly and thankless slog it has turned into. The latest violence in Afghanistan is depressing. The culture war grinds on: America is slouching towards Gomorrah or theocracy, depending on your viewpoint. The earth is either cooking or being overrun by eco-fanatics. And the American economy is tottering. The polls tell a dismal tale. Only 29% of Americans approve of the president. Only 14% approve of Congress. And just 6% view the economy positively. Yet many Americans combine despondency about the big picture with personal contentment. More than 80% say they are satisfied with their own circumstances. Even more are satisfied with their jobs. And although nearly everyone despises Congress, most Americans like their own representatives. Americans have grown accustomed to extraordinary prosperity. Poor Americans today are more likely to have fridges, dishwashers and air-conditioning than average Americans were in 1971. Young voters have no memory of a serious recession, since the last one was in the early 1990s. Some do not even realise that cyclical downturns are normal. Only 18% of Americans think they are worse off than their parents were at the same age. But elections hinge on shorter-term concerns. Four-fifths of Americans say it is harder to maintain a middle-class lifestyle now than it was five years ago. That probably means the election is Mr Obama’s to lose.
Nihilism vs Optimism Tom very nicely captured what might be the essence of these culture battles when he said: "If the dominant clash of my generation was between communism and capitalism, the dominant clash of this generation is between nihilism - as” represented by suicide bombers who try to blow up hope from New York to Baghdad -” and optimism that a better social and political order can be created." You need hope and optimism, not only to go out there and plan the next steps in your life and work, but to help address some of the really tough problems facing us in society. Especially when you are young, it is good to be somewhat naive and idealistic, to have the feeling that the world is your oyster and that there is little you cannot accomplish if you just try hard enough. Even as we get older and have been chastened by encounters with real life, it is very important to retain some measures of hope and optimism in the future as the energy that keeps us going. By contrast, all those individuals that think nothing of killing young people in Baghdad outdoor markets and Tel-Aviv and London nightclubs seem to have discarded all hope in the world. Human existence to them no longer has any meaning or purpose beyond killing those they hate because they live different kinds of lives, as well as wrecking havoc in a society from which they feel alienated. Closer to home, we have our own culture wars. Thankfully, they are quite different in nature, - with loud, angry words as the weapons of choice, - but they are playing out on many fronts with surprising ferocity.
Unhappy America NATIONS, like people, occasionally get the blues; and right now the United States, normally the world’s most self-confident place, is glum. Eight out of ten Americans think their country is heading in the wrong direction. The hapless George Bush is partly to blame for this: his approval ratings are now sub-Nixonian. But many are concerned not so much about a failed president as about a flailing nation. One source of angst is the sorry state of American capitalism (see article). And it’s not just the downturn that has caused this discontent. Many Americans feel as if they missed the boom. America has got into funks before now. In the 1950s it went into a Sputnik-driven spin about Soviet power; in the 1970s there was Watergate, Vietnam and the oil shocks; in the late 1980s Japan seemed to be buying up America. Each time, the United States rebounded, because the country is good at fixing itself. Just as American capitalism allows companies to die, and to be created, quickly, so its political system reacts fast. Everybody goes through bad times. Some learn from the problems they have caused themselves, and come back stronger. Some blame others, lash out and damage themselves further. America has had the wisdom to take the first course many times before. Let’s hope it does so again.
Political Economy and Realities
The Democrats' Dilemma But this Democratic ascendancy is by no means guaranteed for the long run. The changing nature of the party casts its future in doubt, particularly after 2008. Much of this has to do with how the party’s base has shifted, and where that base may lead it over the coming decades. In other words, to borrow roughly from Franklin Roosevelt, the only thing the Democrats have to fear is themselves. Yet today’s Democratic revival represents something far more profound. Rather than a shift to the “middle,” the current Democratic tide reflects a long-term secular shift in the composition of our economy and our class structure. Americans may dislike the term class, but it has been an essential part of our political history. And for most of our history, Democrats represented the middle and working classes, dating at least back to the days of Andrew Jackson. Under William Jennings Bryan, the Democratic Party cast itself as largely the voice of the small farmer and the working and middle classes. Franklin Roosevelt, Harry Truman, and even Bill Clinton maintained this tradition. Yet over the past two decades, and particularly the last few years, the party’s base has shifted decisively in both demographic and geographic terms. Increasingly, the core Democratic constituency—and, even more so, the base of Senator Barack Obama’s campaign—consists not of working- and middle-class whites but of African-Americans and a rising new class of affluent, well-educated professionals. These factors may make it difficult for Democrats to govern as the party of what used to be called “economic justice,” even given the presence of a widening gap between the rich and the middle class. It’s revealing that, rather than express outrage at the huge payouts to the Wall Street elite, Democrats generally prefer to demonize oil company executives, whose pay, if more than generous, pales in comparison to that earned by the traders and speculators.
Where did our financial stability go? Changes to the US economy over the past 4 decades have left Americans richer but less secure. A new book explains why anxiety is rising along with incomes. If the economy is so great, why do things feel so bad? If you've even asked yourself that question, read the following book. Peter Gosselin's just-published "High Wire: The Precarious Financial Lives of American Families" is the best explanation that I've read of why a substantial majority of us feel less secure, more anxious and increasingly worried about the future even though the national economy has done so well over the past 10 to 20 years. I've wrestled with this question repeatedly in my column during the past few years, well before $4-a-gallon gas, falling home prices and rising unemployment provided a short-term focus for our anxieties. After the current economic slowdown is over and we've returned to "normal" good times, I think we're likely to be left puzzling over this question again. If the economy is so great, why do things feel so bad? If you've even asked yourself that question, read the following book. However it's phrased, though, the message is the same: People are worried, really worried, about the future for themselves and their families. The increase in income volatility that shows up in these numbers isn't an accident of the U.S. or global economy, Gosselin argues. As a society, we've pursued choices that have led to this increase in volatility. For example, we've replaced pensions that had guaranteed annual payouts with individual retirement accounts and 401(k)s, where the payout is determined by how much we save and how well our individual investment choices turn out. And we're increasingly replacing employer-provided health insurance with private policies that, when disaster strikes, provide little coverage or none at all. If the statistics don't bring you around to Gosselin's conclusions, his vivid anecdotes about how this system can devastate the lives of people who have planned intelligently and soberly to take care of themselves should at least make you think about the system we've built:
- Americans Losing Faith In Free Markets? Discussing whether Americans are losing faith in free markets, with William Galston, former adviser to President Clinton, and CNBC's Larry Kudlow & Steve Liesman
- Your Money Your Vote Debate Preview A look ahead of the political candidates money men economic battle, with CNBC's John Harwood
Bush Economics Give Obama an Opening A new book designed to show Republicans how to win the working-class vote actually makes a strong case that Sen. Barack Obama (D-Ill.) will carry it. Much-discussed and deservedly praised, "Grand New Party" by Ross Douthat and Reihan Salam paints a grim picture of working-class prospects, both economically and socially, under prevailing circumstances. Instead of being a society where anybody can "make it," Douthat and Salam describe the United States as increasingly becoming an "inherited meritocracy" where the wealthy and well-educated get more so and those without education and skills get left behind and face a life of stress and insecurity. They don't say so directly, but I would: What Obama is offering -- and eloquently -- is hope for a better deal, while Republicans are offering more of the same. And, to the extent that Sen. John McCain (R-Ariz.) does offer new proposals, they tend to be small-bore or hard to grasp. It may be true, as Douthat and Salam contend, that what Democrats propose amounts to a "European-style welfare state" that's economically unsustainable, but McCain hasn't been able to make that case, either. The white working class is the classic "swing" constituency -- Richard Nixon's "silent majority," Ronald Reagan's "Reagan Democrats," the group that gave victories to Bill Clinton and George W. Bush and has been dubbed "Sam's Club voters" by Minnesota Gov. Tim Pawlenty. But my guess is that -- unless McCain can make a better case for Republican economics than he has -- working-class voters will opt for more government help than they've had. As Obama says, Bush's economic policies "have failed to create well-paying jobs or insure our workers, or help Americans afford the sky-rocketing cost of college -- policies that have lowered the real income of the average American family, widened the gap between Wall Street and Main Street, and left our children with a mountain of debt." The working class, like everybody else, wants a change.
Voters Want Less Pork, Even in Their Own District The Club for Growth recently conducted a nationwide poll on government spending, and the results were exactly the opposite of what most politicians have been saying for years. Voters are fed up with Washington's out-of-control spending. Politicians aren't representing the will of the people when they bring home the bacon. They are really representing the will of their special-interest cronies. And it's not just conservative voters who feel that way. Voters across the board have finally found something they can agree on even if their elected officials can't: It's time to cut the fat, even if that means fewer projects for their own districts. The results were unambiguous. Fifty-four percent of general election voters chose the frugal candidate, compared with only 29% who chose the profligate candidate. Republicans overwhelming favor less federal spending, 72% to 17%, with independents close behind at 61%. Only Democrats prefer more federal spending, but only by a plurality. Thirty-six percent of Democrats chose the more fiscally conservative candidate, with 42% choosing the alternative. Unfortunately, too many politicians are refusing to listen. The vast majority of congressmen are just as wedded to bloated budgets as ever. Part of the problem is that wasteful spending is embedded in the congressional culture. Congressional freshmen are instructed by leadership to seek out earmarks and flaunt their success back home. They are indoctrinated to believe that seeking and securing earmarks -- no matter how silly or wasteful -- is a congressman's official duty and a surefire path to re-election. It is for this reason that vulnerable incumbents are showered with additional pork projects as the election cycle heats up. I know this is true because Republican leaders explained this all to me when I entered Congress in 1999.
Candidates Struggle to Find Economic Voice So, the general election campaign has been going on about 45 days, and where do things stand? Interestingly, almost exactly where it did when the two person race started nearly two months ago. Barack Obama is up about five points over John McCain, and that number really hasn't changed at all. And this despite a very positive, widely covered trip overseas by Obama, in conjunction with some mistakes made along the way by John McCain and his surrogates, as well as lots of ads aired and released by each campaign. If all you did was add up the media reports on the race, you would think this race holds an overwhelming lead by Obama. But voters have not yet made that decision. What does this tell us? First, both candidates are underperforming where they should be based on two indicators: 1) the incumbent President has a job approval rating in the high 20s, the worst position ever for a president in the midst of a presidential election, and 2) Democrats have at least a ten-point advantage on the generic ballot and partisan voter affiliation. But I think what is preventing either candidate to do as well as they should, is that the dominant issue in this race is the economy (jobs, cost of health care, gas prices), and neither candidate has found their voice to talk about it, to address voter concerns, and to present a compelling vision for the 21st century. And not only has each candidate not found their voice, but each candidate seems to look for an opportunity to talk about anything else but this issue. If you add up the first 45 days of this general election, the majority of time has been spent on something other than the economy. Quite unbelievable when pocketbook issues are driving American's votes. There is now less than 100 days until election day, and the candidates don't have a lot of time to fix this situation. (I note this week Obama and McCain are trying to address the economy.) And the longer this goes on, the more this race will settle into historic factors which has nothing to do with the candidate's and their campaign's performance. I believe that the first candidate to find their voice on the economy and speak to voters fears and hopes related to that issue will be the candidate most likely to take the oath of office in 2009.
Other Assessments
Obama, Playing His Own Game For years, Democrats have marveled at Republicans' ability to create compelling visuals. When Ronald Reagan's advisers began treating his every appearance as a tableau that required careful attention to lighting, perspective, and composition, it was revolutionary. But look at what we saw this week. While Barack Obama was photographed standing on mountaintops and being mobbed by adoring troops, John McCain was filmed tooling around in a golf cart with George H. W. Bush, a figure from the political past. Then, while Obama spoke in front of a crowd of 200,000 Germans waving American flags, McCain answered questions in the dairy aisle of a supermarket. The imbalance is more than just the two campaigns' relative talent at staging photo-ops. The fact is that in every aspect of campaigning, Obama's team is showing more skill and results than that of his more seasoned Republican opponent. Perhaps the most important difference between the two campaigns lies in their core messages. Look back at recent elections, and you see again and again that the eventual winner had a clear, simple, easily understood message, a story he wanted the public to hear that could be summed up in a single sentence. Obama's message has been the same since he began his campaign (and even before): He is the candidate of change, hope, and unity. Ergo, "Change We Can Believe In," all three ideas conveyed in five words. And McCain? One day he's the candidate of reform, one day he's the candidate of strength, one day he's the candidate of '60s-era cultural resentments, one day he's "the American president Americans have been waiting for."
Known Unknowns About Obama "Just tell me one thing Barack Obama has done that you admire," I asked a prominent Democrat. He paused and then said that he admired Obama's speech to the Democratic convention in 2004. I agreed. It was a hell of a speech, but it was just a speech. On the other hand, I continued, I could cite four or five actions -- not speeches -- that John McCain has taken that elicit my admiration, even my awe. First, of course, is his decision as a Vietnam War POW to refuse freedom out of concern that he would be exploited for propaganda purposes. To paraphrase what Kipling said about Gunga Din, John McCain is a better man than most. But I would not stop there. I would include campaign finance reform, which infuriated so many in his own party; opposition to earmarks, which won him no friends; his politically imprudent opposition to the Medicare prescription drug bill (Medicare has about $35 trillion in unfunded obligations); and, last but not least, his very early call for additional troops in Iraq. His was a lonely position, virtually suicidal for an all-but-certain presidential candidate, and no help when his campaign nearly expired last summer. In all these cases, McCain stuck to his guns. , it was Walter Lippmann's enduring misfortune to size up FDR and belittle him: Roosevelt, he wrote, was "a pleasant man who, without any important qualifications for office, would very much like to be president." Lippmann later recognized that he had underestimated Roosevelt. My guess is that Obama will make a fool of anyone who issues such a judgment about him. Still, the record now, while tissue thin, is troubling. The next president will have to be something of a political Superman, a man of steel who can tell the American people that they will have to pay more for less -- higher taxes, lower benefits of all kinds -- and deal in an ugly way when nuclear weapons seize the imagination of madmen. The question I posed to that prominent Democrat was just my way of thinking out loud. I know that Barack Obama is a near-perfect political package. I'm still not sure, though, what's in it.









