Quoting Robert Kuttner's latest article for The American Prospect:
http://www.prospect.org/cs/articles?article=where_is_the_party_of_recoveryWhere Is the Party of Recovery?
By kowtowing to the deficit hawks, the president is snatching defeat out of the jaws of victory.
Robert Kuttner | March 7, 2011
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But while Republicans overreach, President Barack Obama sometimes seems determined to snatch defeat out of the jaws of victory. The president can't quite bring himself to draw a line in the sand and declare that Democrats will never allow cuts to Social Security benefits. Nor does Obama's own budget propose sufficient job-creation measures. Rather, both parties have their own version of deficit-reduction fever, crowding out more urgent national needs and marginalizing the scope of necessary debate.
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President Obama, however, is evidently calculating that the Republicans will so embarrass themselves that by November 2012, he will look to middle America like the judicious moderate. The recent increase in his poll numbers lends support to that view. But looking moderate in a severe economic crisis is not sufficient. Presidents do not win re-election based on national polls but at actual polling places in swing states such as Ohio, Pennsylvania, Michigan, and Illinois, where unemployment remains sky-high and voters share little of the Beltway reverence for austerity.
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Though it is unthinkable for Democratic deficit hawks and Republican foes of public outlay, domestic job creation will require substantially more public investment and larger deficits for the next few years. The time to pay down debt is when the economy recovers.
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When public opinion is basically on your side, it is a moment to lead, not to prematurely compromise. It would be salutary for the president to put forth a bold recovery program and dare Republicans to vote it down. Necessary compromise to keep the government operating can come afterward, and it will. Even better would be for Democrats to make it crystal clear which party defends and strengthens social insurance.