Obama’s failure to reconcile words to deeds detracts mightily from the grab bag of ideas he offers under the catchy title “middle class economics.” As noted, these policies could really improve people’s lives. But while he’s out thumping for them, he’s in hot pursuit of what he hopes will be his last coup, approval of the Trans Pacific Trade Partnership. It’s such a popular idea he chose not to breathe its name in his speech. What he did say was worth sampling if only to savor its cleverness: “China wants to write the rules for the world’s fastest-growing region. We should write those rules… That’s why I’m asking both parties to give me trade promotion authority to protect American workers, with strong new trade deals from Asia to Europe that aren’t just free, but fair.”
He doesn’t want another free trade fiasco like that awful NAFTA, just “trade promotion authority to protect American workers.” Surely we can all be for that.
Nearly all left-leaning Democrats oppose the TPTP: Paul Krugman, Joe Stiglitz, Bob Reich, Elizabeth Warren. One can’t imagine Obama changing his mind on it any more than one imagines him asking any of them to help craft his new populist agenda. As he likes to reassure his donors, “I’m a market kind of guy,” meaning he comes as close as a Democrat can to being a market ideologue. And yes, there is such a thing.
Market ideologues aren’t the sort to throw bombs or ruin dinner parties but they’re ideologues nonetheless. Their solution for every problem known to mankind is to adopt “market principles.” Their influence on Obama’s generation of Democratic elites has been profound. It’s why so many of them apply market theory to issues to which it is ill-suited, such as carbon reduction, health care and public education.
Obama doesn’t get that free trade can be as good as he says for business and still be a terrible deal for workers. He doesn’t get that markets by their nature do a great job of creating wealth and a poor one of distributing it; that absent a strong government to encode and enforce a social contract there is no middle class; that pitting our workers against those lacking such support will eventually impoverish them. It’s why he opposed raising the minimum wage when he had the votes to do it in his first term. It’s why he bailed out banks but not homeowners, and abandoned the public option.