News Analysis
Obama Pushes Through Agenda Despite Political Risks
If passage of the financial regulatory overhaul on Thursday proves anything about President Obama, it is this: He knows how to push big bills through a balky Congress. But Mr. Obama’s legislative success poses a paradox: while he may be winning on Capitol Hill, he is losing with voters at a time of economic distress, and soon may be forced to scale back his ambitions.
The financial regulatory bill is the final piece of a legislative hat trick that also included the stimulus bill and the landmark new health care law. Over the last 18 months, Mr. Obama and the Democratic Congress have made considerable inroads in passing what could be the most ambitious agenda in decades.
Mr. Obama has done what he promised when he ran for office in 2008: he has used government as an instrument to try to narrow the gaps between the haves and the have-nots. He has injected $787 billion in tax dollars into the economy, provided health coverage to 32 million uninsured and now, reordered the relationship among Washington, Wall Street, investors and consumers.
But as he has done so, the political context has changed around him. Today, with unemployment remaining persistently near double digits despite the scale of the stimulus program and the BP oil spill having raised questions about his administration’s competence, Mr. Obama’s signature legislation is providing ammunition to conservatives who argue that government is the problem, not the solution.
They clearly made a decision that political capital was something that should be used, not saved,” said Steven Elmendorf, a Democratic lobbyist who worked for years as a senior leadership aide on Capitol Hill. “The reality is, he talked before the election about what he wanted to do, and he’s done it. He didn’t trim his sails, he didn’t change his philosophy. He didn’t compromise. The test will come in the fall: can he and Democrats in Congress make the case to the American people that what he did was the right thing to do?”
http://www.nytimes.com/2010/07/16/business/16assess.html?_r=1&hp