EJ Dionne has a very good article on the stimulus package and the politics behind it.
http://www.tnr.com/...
The article explains the nuanced approach to how Obama plans to get his stimulus package through congress and the politics that are required to make sure it passes.
Dionne begins with how it's been so long since Congress had to pass a large spending package with tax cuts like this one that no one has a playbook for how to go about it.
It's a delicate balance of just the right amount and mix of spending and tax cuts to stimulate the economy as well as dealing with the politics behind getting it passed and the bill to be correct.
And of course, on top of republicans, he has to get this passed by Blue Dogs:
To begin with, there is deep resistance to deficits from the fiscally conservative Blue Dog Democrats for whom deficit reduction has been akin to a religious commitment. That's one reason why Obama has been talking about controlling future entitlement spending and why he is touting plans to root out inefficiencies in government -- witness the attention he gave to naming Nancy Killefer, a management consultant, as his "chief performance officer."
For Obama, a highly public war against waste and fraud will ease passage of the stimulus while also showing that Democrats, who propose using government as the instrument for solving a lot of problems, intend to make reform a high priority.
Pelosi is going to help by first bringing to the floor a bill by a Blue Dog, John Tanner. It's an agency by agency audit to eliminate waste.
Obama's impressing them with his stimulating the economy while also addressing the long term problems with waste as well.
Dionne explains why the tax cuts part is in this bill while economists are calling for spending:
Obama may also face a conflict between getting his package passed fast and having it contain the most effective proposals. Many economists, particularly but not exclusively liberals, argue that government spending programs stimulate the economy more quickly than tax cuts. Recipients of tax cuts might choose to save rather than spend the money they get back, or else use it to pay down debt.
The tax cuts are to go to lower and middle income people who are likely to spend it:
Obama solves this problem in part by focusing so much of his tax relief on middle- to low-income Americans, who are more likely to use the money for consumption. And the bulk of the package involves new spending, particularly on infrastructure and new environmental and technological investments. He is also pushing programs especially important to liberals: increases in unemployment benefits and food stamps; and fiscal relief to states for Medicaid and education expenditures.
The business tax cuts are for the obvious reason - republicans. Obama needs to play some politics in order to get what he wants.
Nonetheless, the most striking aspect of Obama's approach is how attuned he has been to his task as politician in chief. He has, so far, managed to maneuver around potential roadblocks rather than blast through them, even as he proposes a reorientation of our politics.
This is along the lines of what I've been thinking. I have read about how Obama use to do this kind of thing in the Illinois Senate. He would work with republicans and give them some of the things that are catnip to them while walking away with just about everything he wants for his bill.
And I've read he was very good at it.
This is going to be a very interesting presidency and I think we may see some big changes in ways things are done.
Besides, Obama's cat and mouse games with the republicans (or I should say slight of hand games) will be fun to watch.