Can Obama Stimulate Republicans - Road to the Middle Class

AFTER THE thunder of the Wall Street Journal conservative edit-page folks, now we get the opinion of the liberal news side (don’t ask why the Journal has two opinion pages).

Today the Journal’s Gerald F. Seib wonders whether President Obama will be able to sweeten the stimulus pot enough to attract some Republican votes. President Obama’s heart is in the right place, but the stimulus package creates a conflict between the need for fast action on the economy and his promise of an end to partisan wrangling.

The passage of the bill without a single Republican vote showed the tension between those dual Obama goals. By ceding so much authority to House Democratic leaders to write and then steer the initial version of the big stimulus package — as opposed to offering his own version and trying to dictate legislative strategy — Mr. Obama got action quickly. But he also got a bill with fewer concessions to Republican wishes than the president himself seems willing to make, and the vote showed it.

A stimulus plan without Republican support would be a replay of the first year partisanship of the Carter and the Clinton administrations. In neither case did the overt liberal partisanship turn out too well for the president and his party. That contrasted with President Reagan, who did get bipartisan majorities for his proposals.

Preventing a similar outcome now likely requires expansion and modification of the tax portion of the stimulus package to accommodate Republican wishes for a more business-friendly mix, and further reduction of the questionable spending provisions in the House bill. Republicans need a reason to swim against the tide in their party.

But here’s an idea. How about a stimulus package that actually stimulates the economy? Loyal partisan that he is, Seib rather dances away from the fact that the stimulus plan is nearly 90 percent to-the-victor-goes-the-spoils. There really is no reason for Republicans to sign on to any stimulus package that doesn’t genuinely stimulate the economy.

So far all we’ve seen from the Obama adminstration is silly subsidies and tax credits. That sort of thing reduces the real economic issues into special interest goodies.

If the Obama adminstration wanted to do one thing to help Americans rather than Democratic supporters (who really don’t work in the real economy, if they work at all) it would be to lower the corporate income tax rate. If it did that it could at least hold its head up at liberal dinner parties because it had avoided the awful sin of lowering personal income tax rates on the rich. And it would lower the water level in the economy so that more corporations could get their feet on the bottom of the pool.

Meanwhile here’s some unsolicited advice to Congressional Republicans. Don’t cave unless you get something that really helps the economy and really helps ordinary Americans.

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Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.