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Democrats, Pushing Stimulus, Admit to Regrets on Obama’s 2009 Response
In pitching President Biden’s relief package, Democrats have said their 2009 stimulus efforts under Barack Obama were insufficient. Those close to Mr. Obama have noticed.
As Democrats pushed this month to pass the $1.9 trillion coronavirus relief package, they were eager to rebuke Republicans for opposing en masse a measure filled with aid to struggling Americans. But they had another target as well: the core policy of President Barack Obama’s first-term agenda.
Party leaders from President Biden on down are citing Mr. Obama’s strategy on his most urgent policy initiative — an $800 billion financial rescue plan in 2009 in the midst of a crippling recession — as too cautious and too deferential to Republicans, mistakes they were determined not to repeat.
The pointed assessments of Mr. Obama’s handling of the 2009 stimulus effort are the closest Democrats have come to grappling with a highly delicate matter in the party: the shortcomings in the legacy of Mr. Obama, one of the most popular figures in the Democratic Party and a powerful voice for bipartisanship in a deeply divided country.
The re-examination has irked some of the former president’s allies but thrilled the party’s progressive wing, which sees Mr. Biden’s more expansive plan as a down payment on his ambitious agenda. And it has sent an early signal that Mr. Biden’s administration does not intend to be a carbon copy of his Democratic predecessor’s. Times, all concede, have changed.
“This time, the feeling was, ‘We’re not very willing to negotiate what we think is needed,’” said former Senator Byron Dorgan, a Democrat from North Dakota who retired ahead of the 2010 midterm elections. “In 2009, I think the feeling was, ‘Oh we wanted more, but we didn’t get what we wanted.’”
The careful dance around Mr. Obama and his accomplishments continues a dynamic from the Democratic presidential primary. While taking care not to disparage his administration, several candidates stressed the need for the party to embrace a more take-no-prisoners political approach with Republicans; others criticized Mr. Obama’s policies on immigration: though he used an executive order to aid the Dreamers, he also pushed deportations and border detentions.
It also highlights the rapid change in Washington over a decade of partisan brawling. Both Mr. Obama and Mr. Biden came into office on promises of unity and bipartisanship in the face of an economic crisis, but Mr. Biden is the beneficiary of a changed landscape in the party. Democrats are now more cognizant of Republican obstruction, less deferential to the deficit hawks and energized by a growing progressive wing that has pulled the party’s ideological midpoint to the left.
A decade ago, Mr. Obama’s strategy reflected the Democratic Party’s mainstream, an insistence on negotiating with Republicans, keeping the Senate filibuster and trimming his own ambitions for a nation that he and others worried could handle only so much change after electing its first Black president. Now, the progressive criticism of that posture has become party canon.
Representative Alexandria Ocasio-Cortez of New York, a leading progressive voice, said the changes should be attributed partly to the growth of the left, but partly to an inadequate Democratic response to the Great Recession, which she said “created so much damage economically, for people, but it also created a lot of political damage for the party” by not being larger in scope.
“I came of age watching Democratic governance fail me and fail my family,” Ms. Ocasio-Cortez said.
Mr. Obama is himself a person who carefully takes stock of his presidential legacy and his place in Democratic Party politics. He has not publicly responded to the recent criticism of his stimulus strategy, and through a spokesman he declined a request to comment for this article.
But for friends and allies who are close to him, the characterizations of Mr. Obama’s 2009 efforts sting.
Some describe it as an attempt, in a different political era, to act as Monday-morning quarterback, and bristle that figures who were involved in the 2009 negotiations — like Senator Chuck Schumer or Mr. Biden — have now publicly expressed regret over them. Others describe it as the natural course of politics: past actions being used as a baseline for improvement.
Valerie Jarrett, Mr. Obama’s former senior adviser, said the administration was acting on the evidence and the political possibilities of the time.
“This was the worst economic recession since the Great Depression,” she said. “And therefore, there wasn’t a body of evidence about the size of the package and the impact it would have.” She also mentioned a political incentive: “It was important to show the country early in President Obama’s time in office, he was willing to work with Republicans.”
Rahm Emanuel, the former Chicago mayor who served as Mr. Obama’s first chief of staff, said Democrats would do well to compare themselves with their Republican presidential counterparts, and not with other Democrats.
“It’s really about Obama versus Bush, and Biden versus Trump, not the other way around,” Mr. Emanuel said. “We built long-lasting, robust economic growth. And I think comparing one to the other is, is historically not accurate. And also, more importantly, it’s strategically not advantageous.”
David Axelrod, who served as a chief strategist to Mr. Obama, said he believed the current criticism was born of a desire to avoid a midterm shellacking similar to the one Democrats suffered in 2010.
“It is irksome only in the sense that it was an entirely different situation,” Mr. Axelrod said. “If the Obama economic record were deficient, I’m pretty sure Joe Biden wouldn’t have run on it.”
In many ways, the maneuvering is a stand-in for larger tensions within the party. Mr. Obama’s close-knit circle is keenly devoted to protecting his policy legacy. A growing left wing wants more investments in health care and combating climate change, and a break from hard-line policy on immigration. Mr. Biden’s administration is seeking to chart its own path.
In a recent address to House Democrats, Mr. Biden argued that it was Mr. Obama’s “humility” that cost Democrats at the time, because the president didn’t spend enough time explaining the benefits of his stimulus package to the American people.
“Barack was so modest, he didn’t want to take, as he said, a ‘victory lap,’” Mr. Biden said. “I kept saying, ‘Tell people what we did.’ He said, ‘We don’t have time, I’m not going to take a victory lap,’ and we paid a price for it, ironically, for that humility.”
The White House recently announced that Mr. Biden, Vice President Kamala Harris and some key administration figures would travel the country.
In the former president’s recently released memoir, he often returns to a familiar argument: that the ambitions of his legislation were hamstrung by an obstructionist Republican Party and moderate Democrats who were unwilling to go it alone without any bipartisan support.
Frequently Asked Questions About the New Stimulus Package
The stimulus payments would be $1,400 for most recipients. Those who are eligible would also receive an identical payment for each of their children. To qualify for the full $1,400, a single person would need an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income would need to be $112,500 or below, and for married couples filing jointly that number would need to be $150,000 or below. To be eligible for a payment, a person must have a Social Security number. Read more.
Buying insurance through the government program known as COBRA would temporarily become a lot cheaper. COBRA, for the Consolidated Omnibus Budget Reconciliation Act, generally lets someone who loses a job buy coverage via the former employer. But it’s expensive: Under normal circumstances, a person may have to pay at least 102 percent of the cost of the premium. Under the relief bill, the government would pay the entire COBRA premium from April 1 through Sept. 30. A person who qualified for new, employer-based health insurance someplace else before Sept. 30 would lose eligibility for the no-cost coverage. And someone who left a job voluntarily would not be eligible, either. Read more
This credit, which helps working families offset the cost of care for children under 13 and other dependents, would be significantly expanded for a single year. More people would be eligible, and many recipients would get a bigger break. The bill would also make the credit fully refundable, which means you could collect the money as a refund even if your tax bill was zero. “That will be helpful to people at the lower end” of the income scale, said Mark Luscombe, principal federal tax analyst at Wolters Kluwer Tax & Accounting. Read more.
There would be a big one for people who already have debt. You wouldn’t have to pay income taxes on forgiven debt if you qualify for loan forgiveness or cancellation — for example, if you’ve been in an income-driven repayment plan for the requisite number of years, if your school defrauded you or if Congress or the president wipes away $10,000 of debt for large numbers of people. This would be the case for debt forgiven between Jan. 1, 2021, and the end of 2025. Read more.
The bill would provide billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes. About $27 billion would go toward emergency rental assistance. The vast majority of it would replenish the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. That’s on top of the $25 billion in assistance provided by the relief package passed in December. To receive financial assistance — which could be used for rent, utilities and other housing expenses — households would have to meet several conditions. Household income could not exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals would have to qualify for unemployment benefits or have experienced financial hardship (directly or indirectly) because of the pandemic. Assistance could be provided for up to 18 months, according to the National Low Income Housing Coalition. Lower-income families that have been unemployed for three months or more would be given priority for assistance. Read more.
Options like budget reconciliation, the parliamentary tactic Mr. Biden used to pass the coronavirus relief plan by a simple majority vote, were not even proposed by most progressives, former aides to Mr. Obama said. That meant that any legislation would need a filibuster-proof 60 votes.
“Between Republican attacks and Democratic complaints I was reminded of the Yeats poem ‘Second Coming,’” Mr. Obama wrote in the book. “My supporters lacked all conviction, and my opponents were full of passionate intensity.”
But Mr. Obama’s own public comments since his presidency hint at a changing worldview. At the funeral for Congressman John Lewis, the civil rights icon who died in 2020, Mr. Obama seemed to endorse ending the Senate filibuster as a way to expand voting rights — a move he had long avoided. He said during the Democratic primary that while he was proud of his presidential campaigns, the landscape had changed and required more expansive policy proposals.
“I want candidates now to propose beyond what we were able to get done then, because the politics have changed,” he said at a 2019 fund-raiser.
That task is now left to Mr. Biden, who lacks the cult of personality that surrounded his former boss but is also less interested in cultivating one. In passing his first piece of signature legislation without a Republican vote, the president has subtly rejected the way Ms. Jarrett framed unity — he will pursue it not by endlessly wooing Republicans but by passing legislation that most Americans support.
Senator Susan Collins of Maine, a moderate Republican who backed Mr. Obama’s stimulus measure after it was pared back, said the Democrats’ approach on the stimulus bill passed last week was a reversion on the president’s campaign promise to be a unifying figure.
She recently told reporters that Mr. Schumer, the majority leader who led the negotiations on Mr. Biden’s bill, “showed that he had absolutely no interest in trying to negotiate a bipartisan agreement.”
Progressives like Senator Bernie Sanders of Vermont and Ms. Ocasio-Cortez say the willingness to forgo Republican buy-in is proof the entire party now agrees on the need for structural reform, and the hardball tactics that may be required.
“Schumer spoke to the very real pain of delaying decisive action, which is a self-inflicted wound, I would say, for the party,” Ms. Ocasio-Cortez said. “Where you delay and you water down, and you just kind of hand Susan Collins a pen, to have her diminish legislation for months, just for her to not even vote for it in the end.”
But Mr. Emanuel advised Democrats to remember the lessons of the presidential primary. After one debate in Detroit, when candidates repeatedly remarked on the failures of Mr. Obama’s tenure and how they would do better, voters rushed to defend the nation’s first Black president, and the running mate who stood with him.
“When the Democrats were criticizing President Obama, it was Biden that said: ‘What are you guys doing? He’s our president,’” Mr. Emanuel said. “So I’m with Joe Biden on that analysis.”
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