Setting the terms of the debate
by digby
One of the saddest comments on our media is the fact that CNN replaced former heavyweight scourge of Wall Street Eliot Spitzer with vapid Wall Street cheerleader Erin Burnett. It says everything we need to know about our current problems.
Roxanne Horesh and Sam Bollier of Al Jazeera caught up with Spitzer recently and asked him some questions about the economy and politics. Here are a couple of interesting exchanges from the interview:
Obama has consistently called for more regulation of banks since 2008, but his administration has failed to prosecute anyone in connection to the financial crisis. Why do you think that is?
The president embraced a very status quo vision of Wall Street. He did not lead an effort to fundamentally reform the way our financial sector operates. He put Tim Geithner in as Treasury Secretary, and Geithner and [National Economic Council director Lawrence] Summers together were very much status quo voices.
Now when it comes to prosecutions, look, I’ve got to presume the good faith on the part of the Justice Department. But I’m disappointed, as everybody else is. When I was attorney general, we managed to bring cases. Frankly, I wish we’d brought more. People ask me over the years, “Were you too tough on Wall Street?” And my answer is “no, just the opposite”. We should have been tougher. Because look at what has happened and look at the sensibility on Wall Street, which is that gee, things are back to normal.
[…]
In a Slate.com column, you mentioned the importance of investing in young Americans. What do you see as the best way for the current administration to invest in the young?
One is increased investment in education. Intellectual capital is going to be the competitive playing field of the next century. We also need to invest in the infrastructure of our economy. We need a massive investment in energy to release ourselves both from the environmental concerns of global warming, but also from, frankly, the trade deficit that results from our exporting huge amounts of dollars overseas.
I would also support a major jobs programme. If you take the $100bn we’re spending in Afghanistan and divide it by $20,000 a year that you could pay people, you could hire 5 million people.
Do you think that such a bill would have a chance passing congress as it is comprised today?
Absolutely none at all, but the role of the president is to set the terms of debate. And part of the problem with President Obama is that he has been so muted and hesitant in his willingness to confront these major issues. He hasn’t even come out with a serious mortgage reform proposal. We haven’t dealt with the mortgage crisis and we haven’t dealt with the jobs crisis. Those are the two major impediments holding back our economy.
I think that last is is important. It’s recently become an article of faith among establishment liberals in Washington that the presidency is a weak office and that the president was so hindered by congress that nobody should have expected him to achieve much of anything. But for a lot of disillusioned liberals around the country, this is mighty thin gruel considering the president rode into office on a sweeping promise to change that very dynamic. I don’t think that was ever possible, and never believed it, but many of his followers certainly did and are somewhat understandably disappointed that it didn’t happen.
But for me the problem isn’t that he failed to fulfill a utopian campaign promise, which he didn’t. And I understand that he was faced with an epically intractable opposition, which I expected. It’s what Spitzer said. The president isn’t all powerful and he can’t singlehandedly make things happen. But because he can get the attention of the press and is seen by the public as the face of government he has tremendous power to set the terms of the debate. As has been endlessly documented, he didn’t really do that.
There are many theories as to why that is, but I think it refutes a fair piece of the prevailing notion that the presidency is an inherently weak office. There’s more to politics than legislative wrangling — or at the very least, the degree to which it can be wrangled is often based on the parameters of the debate, which the president has huge power to affect.
The whole interview is interesting. Spitzer doesn’t rule out a return to politics. Unfortunately, I don’t know if he’ll be allowed to.
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