THE NEW YORKER

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The Populism Problem

by James Surowiecki, February 15, 2010

It’s been the political equivalent of an intervention: in recent weeks, Democrats have been bombarded with advice about how they should reinvent their economic agenda. The electorate, we hear, wants Barack Obama to be more of an economic populist but less of an ambitious reformer. He has to aggressively create jobs but also be less spendthrift. This advice may be contradictory, but then so are the economic opinions of the many angry voters who are animating what’s being called the new populism. Whereas the economic populism of the eighteen-nineties and the right-wing cultural populism of recent years represented reasonably coherent ideologies, this new populism has stitched together incompatible concerns and goals into one “I’m mad as hell” quilt. The people may have spoken. It’s just not clear that they’re making any sense.

One view of this new populist uprising is that it’s about Main Street versus Wall Street, and is grounded in voters’ fury at the bailout of irresponsible bankers. But that’s too simple. While the banks are public enemy No. 1, there’s a much wider-ranging anger out there, a sense that everyone except the ordinary middle-class person is getting some sort of handout. Big Business, Big Government, and Big Labor: voters don’t seem to like any of them. The bailout of the auto industry, after all, was as unpopular as the bailout of the banks, even though it was much tougher on the companies (G.M. and Chrysler went bankrupt; shareholders were wiped out, and C.E.O.s pushed out), and even though the biggest beneficiaries of the deal were ordinary autoworkers. You might have expected a deal that helped workers keep their jobs to play well in a country spooked by ballooning unemployment. Yet most voters hated it.

Similarly, the failure of free markets during the financial crisis might have led people to think that the government should be more involved in the economy. Instead, the percentage of Americans who think government is trying to do too much is higher than it’s been since the late nineties. Health-care reform offers a case study in this. The bills passed by Congress, whatever their flaws, would do things that voters overwhelmingly say they support: extend coverage to the uninsured, ban the worst practices of insurers, and guarantee insurance for people who lose their jobs. Yet more voters now oppose the bills than support them, with many saying that the government is overreaching. And, while voters routinely say that the rising cost of health care is a problem, it is the bills’ cost-control provisions—including a tax on expensive insurance plans and rules to restrain Medicare spending—that have proved especially unpopular. On top of this, many people are just annoyed with the whole process: a survey of voters who supported Obama in 2008 but voted for Scott Brown in the recent Massachusetts Senate race found that forty-one per cent of those who opposed health-care reform weren’t sure whether reform went too far or not far enough. In short, they don’t know why they’re against reform; they just are. It’s a bit like Marlon Brando in “The Wild One.” Asked what he’s rebelling against, he says, “Whaddya got?”

One thing voters do want is jobs. But even here populist sentiment is at odds with itself. People want the government to help provide jobs, but they also want it to cut the deficit. Of course, one can worry about rising long-term debt and still think that, right now, more deficit spending is crucial to the nascent recovery. But angry voters aren’t that nuanced in their thinking: they want the government to tighten its belt and fight unemployment at the same time. Not that they believe that the government’s efforts will do any good: three-quarters of Americans think that much of the money in the first stimulus program was wasted, perhaps because they can’t see all the jobs that the stimulus saved, only the nearly eight million jobs that the economy has lost.

The anger is understandable, and voters are under no obligation to be consistent. But that doesn’t make the new populism any less of a challenge politically, since, at the moment, voters will find something wrong whatever is done: if Democrats pass a stimulus package, they’ll be lambasted for increasing the deficit; if they don’t pass a stimulus, they’ll be attacked for not caring about jobs. On top of that, both history and theory suggest that tough economic times make people less interested in sharing burdens, not more. One recent study found that people who had been treated unfairly became more selfish. It’s hard to pass reform programs that depend on a sense of solidarity—like health-care reform or cap-and-trade—when voters are trying desperately to protect what they already have.

More . . .

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Dems are hitting the classing leadership void problem.  Lack of credibility for trustbuilding.

There is fundamental no relationship created over the past year with the electorate.  No real listening. This is where things will need to change.

For this reason, a full and complete display of open and honest dialog between Dems and Republicans will be necessary before any new policy can pass.

If the President is smart, he will know that the only way to do this is on open channel that gives chance for people to actually see and possibly also question both Republicans and Democrats as they present their approach to any policy.

Both sides will need to work their agenda different.

Populism speeches will only get you thus far. There is no substitute to dialog when it comes to trustbuilding.



-- Edited by Sanders on Monday 8th of February 2010 04:20:53 PM