Job One

The only way Obama can pull his presidency back from the brink.

Similar factors could certainly make the state of the economy less important in shaping Obama's popularity--dramatic success or failure in Afghanistan, for instance, or a new terrorist attack--but, for now, these factors are not in play. And that means Obama's fortunes, like those of so many of his predecessors, are tethered to the economy.

At the peak of Obama's popularity in January, when 69 percent approved and only 13 percent disapproved of his presidency, the unemployment rate was 7.6 percent. In September, after unemployment had climbed to 9.7 percent, 52 percent approved and 41 percent disapproved. Indeed, except during the spring, there has been a close correlation between unemployment and Obama's disapproval ratings throughout the last nine months (see Figure 3).

These numbers are ominous. Obama's disapproval ratings exceed those of every president since Eisenhower at this early stage--except for Clinton, who had similar disapproval ratings nine months into his first term. And they can't be explained as the inevitable result of the administration's honeymoon period coming to an end: Eisenhower, Kennedy, and George H.W. Bush all saw their popularity rise during the same period Obama's has fallen.

So what can Obama do? It's easy to say what would really help: rapid job growth, the revival of the housing market, transit systems that aren't breaking down, the reinstitution of after-school programs, crowded shopping malls and auto showrooms--the kind of things that go with a robust economic recovery. But the U.S. economy isn't going to morph overnight from its current woeful condition to a state of buoyant full employment. In a September 14 speech, Janet Yellen, president of the Federal Reserve Bank of San Francisco, warned of a "tepid" recovery that is "vulnerable to shocks" and an "unemployment rate [that] will remain elevated for a few more years."

What Obama and the Democrats have to hope for, then, is not a full recovery, but sufficient improvement in jobs, wages, and public services to convince voters that the economy is on the mend. That's what helped Roosevelt and Reagan keep their majorities--and, in Roosevelt's case, what lay the basis for nearly four decades of Democratic hegemony. With the Republicans in disarray and demographic trends favoring the Democrats, an uptick in the economy for which voters credit Obama could lay the basis for a new Democratic majority. But, to accomplish this, Obama must promote programs that visibly and immediately provide economic relief.

In that respect, even a successful resolution to the current health care debate is unlikely to do Obama much good. Yes, it will ward off the stigma of incompetence and ineffective leadership that haunted Carter and Clinton during their first two years, but it isn't likely to overcome the drag on Obama's popularity of continuing joblessness.

As presently designed, the health care bill won't take effect until 2013--after the 2012 election. Even then, its effects may not be felt by many voters who already have insurance. Over the years, I've heard Democrats hope and Republicans fear that a health care bill will do for Democratic electoral prospects what the introduction of Social Security in 1935 did for Roosevelt. But this assertion is based on a misunderstanding of the original Social Security Act. That bill included old-age insurance, unemployment compensation, and public assistance for poor seniors and children. The introduction of unemployment compensation probably did help FDR, since the concrete economic benefits could be felt immediately. But old-age insurance--what we now call Social Security-- remained controversial and open to attack from anti-tax Republicans for years to come. Taxes for old-age insurance began in 1937 (and were later seen as contributing to the downturn that year), but benefits, which were very small, were not slated to be paid until 1942. Many workers, including farm laborers, domestic employees, professionals, and the self-employed, were not even eligible for old-age pensions.

 It wasn't until 1950, when Congress expanded the scope of the program to include most employees and the self-employed, and when the benefits were increased to exceed those of welfare, that Social Security became a boon to the Democratic Party. And that was 15 years after it was created. Obama's health care bill could suffer a similar political fate--both because the initial benefits will take years to come into play and because, even when they do, the system will probably remain a work in progress for a very long time. Eventually, health care reform could undergird a liberal majority. But, in the short term, it will not necessarily keep Obama and congressional Democrats in office.

What dramatized the New Deal's contribution to the economy--ensuring that Roosevelt was given credit for the rise in employment--was the advent of colorful new agencies like the Civilian Conservation Corps, the Rural Electrification Administration, the Works Progress Administration, and the Public Works Administration. If Obama wants to follow Roosevelt's precedent, he'll introduce programs that provide jobs and capture the public's imagination. In a late August CNN poll showing that the public narrowly disapproved of Obama's "handling of the economy," respondents still deemed "cash for clunkers"--a perfect example of a visible and imaginative stimulus program--a success rather than a failure by 55 percent to 40 percent.

Moreover, to avoid what marred Roosevelt's second term--the precipitous double-dip in the depression that occurred in 1937–1938--Obama should turn a deaf ear to those who are calling for fiscal responsibility. He should keep pouring money into jobs and into the pockets of people who will spend until the unemployment rate begins going down and wages begin going up. That may mean a second stimulus (despite the current hostility toward spending in Congress) would be worth pushing. He might also be wise to follow Reagan's example and get tough with foreign competitors who are using import barriers, export subsidies, and currency manipulation to inflict large trade deficits on the United States. And, whatever he does to try to mend the economy, Obama should never stop loudly trumpeting his efforts--so that he is able to reap the credit when improvements occur.

None of this is to say that Obama shouldn't try to pass a major health care overhaul. He is correct that Democrats may not have another chance to do so for decades--and, as the experience of Social Security shows, an imperfect program can be improved over time. There is good reason to applaud the president's statement to Congress that "we did not come here just to clean up crises, we came here to build a future." But, if Obama doesn't clean up the crisis and get the economy moving again, his administration may not be around to enjoy the future he is building.

John B. Judis is a senior editor at The New Republic.

 

Page 3 of 3

COMMENTS (19)

09/22/2009 - 1:51am EDT |

Judis jumps back in the game joining The Editors in tentatively applauding Obama, Baucus and the insurance industry for being on the brink of health care "reform". Really, that's what he'll call it when it's his turn to drink the kool-aid. Or does he make the stuff now?

But why so long? Did Marty have him on suspension...or is he working on the new book, "My Long Road From Main Street To Wall Street: The Inflection Point Years"

And here we go again:

Yesterday:

"The Republican Party Is Falling Apart At The Seams---Democrats Likely To Rule For Generations To Come!!"

Today:

"Polls Show Republicans Surging In Key States.....Obama, Democrats Risk Losing It All [OH GOD] Forever!!!"

You guys are fucking ... view full comment

09/22/2009 - 2:08am EDT |

I wouldn't mind a chart that simply tracked disapproval and unemployment since disapproval has been polled. For that matter, we could throw in an approval line too. The presentation here raises two questions: First, what about the periods not shown? For example, I assume that Clinton's early first term troubles -- one of the precedents that is driving Judis's concerns -- could *not* be explained by unemployment, because that chart is not shown and Judis offers in passing a preemptive, economic explanation for its absence -- that is, Clinton was hit by "wage stagnation." But is wage stagnation really a good explanation for Clinton's Obama-esque early rise in disapproval? What about that ... view full comment

09/22/2009 - 2:53am EDT |

Walton, you are insane and the sad thing is is that you don't know it. John Judis as David Broder is the dumbest thing that I have ever read on this website. Jonathan Chait - who is about a billion times smarter than you - wrote an excellent piece on the fact that even partial health care reform will be a radical step forward. But no, if you can't have the whole loaf, you don't want any of it. The late Richard Rorty wrote about your kind when he said that radicals desire the sublime while liberals are satisfied with the merely beautiful. Actually, he was writing about people far smarter than you but your attitude is redolent of his apercu.

09/22/2009 - 4:33am EDT |

Lib,

Chait, Judis and Rorty [Rorty from the grave] can no doubt run rings around me intellectually. All academics can. But that doesn't make them any less subservient to the WHCD ilk that pervades the mainstream media. They ooze the newspeak of those who get almost all the information they think they need to know about the world around us....from each other. They all read the same stuff skewed left or right. They all think comfortably within the parameters of the inflection points that embrace state capitalism while still yammering on and on about stuff like freedom and democracy at home and abroad. As though the two the bump into each other only occasional with glancing blows.

And if more th ... view full comment

09/22/2009 - 7:20am EDT |

It's really, really, really the economy, stupid.

Obama can't just "hope." After health care reform in some form or another is passed, Obama has to get medieval on unemployment. End of story.

It's insane that China is cspturing the green jobs market.

09/22/2009 - 7:30am EDT |

Every other stable and functional discussion group or message board I've ever used has allowed users to customize their interaction with other users. For example, to receive alerts when a favorite other commenter posts a message. Or, more to the point, to ignore messages from particular commenters, such that posts from known trolls simply don't appear in threads at all. TNR.com used to have some of these features; now it does not, or if it does, they are prohibitively hard to find to activate. This is a major step backwards. These tools -- the ability to follow or ignore posts by particular individuals -- are fundamental and necessary to allowing any useful online discussion. Without these t ... view full comment

09/22/2009 - 10:08am EDT |

rhubarbs said,

"...These tools -- the ability to follow or ignore posts by particular individuals -- are fundamental and necessary to allowing any useful online discussion..."

I second that. In particular, there's a particular maundering ubertroll I'd love to be able to filter out.

09/22/2009 - 10:45am EDT |

Aside from George who always has a pretty good handle on things, nothing to see here but the same old BS. Now I remember why I stopped commenting here, damn this rag needs an infusion of fresh commenting blood.

09/22/2009 - 1:36pm EDT |

rube:

....Or, more to the point, to ignore messages from particular commenters, such that posts from known trolls simply don't appear in threads at all. TNR.com used to have some of these features; now it does not, or if it does, they are prohibitively hard to find to activate...

george:

Or why not just outright censor them....or kick them out of here? Right, Mr. Rube? We're Good and they're Evil,

You guys are priceless.

How are you NOT able to ignore alleged trols in here? Are you reading trolls now? Then stop reading them. After all, if trolls come in here to "ruin it" and no one ever reads them, what's ruined?

What is it about particular "trolls" that so disturb you if you don't have to read ... view full comment

09/22/2009 - 1:49pm EDT |

b1462:

In particular, there's a particular maundering ubertroll I'd love to be able to filter out.

george:

More of the same.

Try this:

1]

You come into TNR talkback and there's the ubertroll

2]

You say to yourself, "I know. I won't read him this time"

3]

You don't read him this time. Or ever again.

Problem solved. I know it's not the same as sending Jack Bauer in after him but like Macguyver you sometimes have to improvise.

Oh, and just in case that ubertroll happens to be me I'll repeat myself:

I've thought about it some and as close as I can figure, people recoil from me here because:

1]

I'm annoying when I poke around in things that generally discomfit people who like their topical discussions linear ... view full comment

09/22/2009 - 3:15pm EDT |

What the hell! I think I'll fling in a comment on the article, instead of the commentators.

I think Judis, like Carville before him, has it fundamentally right: It's always the economy, stupid! Rule 1: When people feel good, or at least better, they reward the incumbents. When they feel bad, or no better, they punish the incumbents. Rule 2: Unless the incumbents are Hoover, Mellon, et al, the next guy(s) only get so long to blame things on their predecessors. Rule 3: The other rules are hard on politicians, who, like economists, secretly understand that there are limits to their ability to impact the private economy.

The fact that most economists, notably including Ms. Romer, expect the ... view full comment

09/22/2009 - 6:22pm EDT |

isernoff:

I think Judis, like Carville before him, has it fundamentally right: It's always the economy, stupid!

george:

No, it's always the enormous influence [and the inherent potential for legalized plutocracy] those with poitical and economic power have OVER THE ECONOMY, stupid!!

Judis used to grasp this more clearly. Now he still grasps it of course but he has sold his soul to the media moguls big and small who earn a living shoveling state capitalism under the rug. Some do it self-consciously, others are sadly blind to it because they read the stuff of those who either do the shoveling or are blinkered by it themselves.

Where is THIS in the Judis ChartWorld?

Max Baucus funds his political car ... view full comment

09/24/2009 - 11:05am EDT |

I believe I've said before on this site that the economy is the key determinant of this president's popularity (barring some extraordinary event such as 9-11). Most economists expect a gradual recovery, and it is likely that unemployment will start falling some time in 2010. If, by summer/early fall 2010, unemployment is trending down, and other signs of recovery (productivity, profits, stock prices) abound, Obama will be quite popular. The stimulus, much of which is just starting to be implemented, will deservedly get some credit.

A health care bill, once passed, will probably not hurt his popularity. Whatever passes will be unlikely to fit conservatives' fantasy of "gubmint takeover of eve ... view full comment

09/24/2009 - 11:10am EDT |

One more comment: predictions about Democratic losses in Congress may turn out to be correct, but I am skeptical about anything more than the loss of a few seats. One reason is cautious optimism about the economy. The other is that when voters get a close look at some of the actual people the GOP nominates, they may find them too repulsive to merit serious consideration.

09/24/2009 - 3:42pm EDT |

Yeah, well, you know what? The economy isn't going to be "fixed" any time soon. And

one problem is that the better some things get, the quicker people forget how close

we came to disaster and the more they complain about cost, Federal take-overs, etc.

But there are a few things the President might do to enhance his fading image:

1. Stop trying to appear on television every day of the week.

2. Stop trying to do everything himself, or to make it appear he's doing everything

himself.

3. Hire some people who are competent to assume responsibility for major

initiatives and programs. Let's see, now there's Hillary and...? There are some

real nobodies ... view full comment

09/24/2009 - 4:56pm EDT |

Interesting mlottman: I find 1 and 2 baffling. The conventional wisdom had been that Obama was not doing enough himself and wasn't out there enough. (I agreed. He was letting the health care debate get away from him.) Now, having given a well-received nationally televised speech and several interviews, he's absurdly accused of being "over-exposed." Ridiculous -- a totally made-up controversy concocted by bored TV people and partisan hacks. With respect to 3, I don't know what buffoons you have in mind. It appears to me that this cabinet is uniquely stocked with knowledge and expertise. The adminsitration's economic people strike me as very good. Sure, you could call Geithner and Go ... view full comment

09/24/2009 - 4:59pm EDT |

p.s. The urge to tell the White House to "just do it" neglects the extent to which it is but one branch of government. You have to deal with the fact that the resposne to such entreaties, if they're not carefully calibrated and orchestrated, will be, "Uh, no."

09/25/2009 - 11:22am EDT |

Everyone might want to look at today's Times, which reports Obama's approval rating at 56% (higher than Reagan's at this point, and much higher than Clinton's). Also, many more trust him over Republicans on health care and the economy, and Democrats in Congress poll much better than Republicans. Obama's (& Democrats') numbers only look low if you compare them to last spring; I never expected those to last. Once a president and a congress of one party start to DO things that are on their agenda, adherents of the other party start to disapprove. No surprise.

10/06/2009 - 5:29pm EDT |

I wish someone from TNR would respond to (actually, apologize for) jhildner's first comment above.

It's manifestly dishonest to present three charts purporting to show the same thing (correlation between unemployment and presidential approval) even though a consistent scale would show no such thing.

How is that not the very definition of deceit? Because it's easy to figure out? I suppose a bad lie is somehow not a lie.

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