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COLUMNISTS
TODAY'S STORIES
24.12.2007
The Krugman-Obama Grudge Match Continues

Paul Krugman lays into Barack Obama this morning for Obama's criticisms of some labor 527s  supporting John Edwards:

Mr. Obama has lashed out at Mr. Edwards because two 527s — independent groups that are allowed to support candidates, but are legally forbidden from coordinating directly with their campaigns — are running ads on his rival’s behalf. They are, Mr. Obama says, representative of the kind of “special interests” that “have too much influence in Washington.”

The thing, though, is that both of these 527s represent union groups — in the case of the larger group, local branches of the S.E.I.U. who consider Mr. Edwards the strongest candidate on health reform. So Mr. Obama’s attack raises a couple of questions.

First, does it make sense, in the current political and economic environment, for Democrats to lump unions in with corporate groups as examples of the special interests we need to stand up to?

Second, is Mr. Obama saying that if nominated, he’d be willing to run without support from labor 527s, which might be crucial to the Democrats? If not, how does he avoid having his own current words used against him by the Republican nominee?

Part of what happened here, I think, is that Mr. Obama, looking for a stick with which to beat an opponent who has lately acquired some momentum, either carelessly or cynically failed to think about how his rhetoric would affect the eventual ability of the Democratic nominee, whoever he or she is, to campaign effectively. In this sense, his latest gambit resembles his previous echoing of G.O.P. talking points on Social Security.

Beyond that, the episode illustrates what’s wrong with campaigning on generalities about political transformation and trying to avoid sounding partisan.

It may be partisan to say that a 527 run by labor unions supporting health care reform isn’t the same thing as a 527 run by insurance companies opposing it. But it’s also the simple truth.

But here are a couple of other simple truths that Krugman doesn't mention in his column. Number one, the larger of the two 527s helping Edwards is run by a longtime (though not current) Edwards advisor, Nick Baldick--which isn't an unimportant detail and makes Obama's criticisms look more justified.

Number two, Edwards himself has called on the 527s to stop running the ads on his behalf. (A representative press release from the Edwards campaign: EDWARDS: STOP THESE ADS.) Now, my hunch is that Edwards's demand that the 527s stopping run these ads is totally disingenuous and is the sort of thing he has to say, since he's running on a platform of campaign finance purity. But if Krugman is going to suggest that Obama's criticism of these 527s means that he would refuse the support of labor 527s in a general election campaign, Krugman should probably note that Edwards is in fact refusing the support of labor 527s--and is still receiving it. That's the way the game is played--and there's no reason to think Obama wouldn't play it that way should he win the nomination.

I realize Krugman has reason to be angry with Obama, but I think he's stretching on this one.

--Jason Zengerle 

 

Posted: Monday, December 24, 2007 11:57 AM with 20 comment(s)

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stgla said:

Also, I have to think that about 5 people are reading Krugman's column today, none of whom is voting/caucusing in Iowa or New Hampshire, so nobody who matters really cares or is following this "grudge match."

December 24, 2007 12:38 PM

stgla said:

Also, I have to think that about 5 people are reading Krugman's column today, none of whom is voting/caucusing in Iowa or New Hampshire, so nobody who matters really cares or is following this "grudge match."

December 24, 2007 12:38 PM

virginiacentrist said:

I think Krugman needs to retake an Econ 101 class and learn a bit about unions and their effect on jobs/efficiency....

December 24, 2007 1:07 PM

boneill said:

Nice to see you two are around, posting for all of us sinners.

December 24, 2007 2:25 PM

stgla said:

vacen: What I learned in Econ 101 about unions and their effect on jobs/efficiency is that they can be very efficient, as long as they set both wage and employment levels, not just wages.  That way, they act as a monopolist (in the supply of labor) and therefore achieve an efficient solution, albeit with the consumer/producer surplus going to the unions, not the employer.  The inefficiency only comes from money spent on rent-seeking behavior (e.g. spending money on the organizing and bargaining process itself) and the deadweight loss that results from lower employment, if the union does not protect the employment level.  Of course, that analysis assumes homogeneous worker productivity.  

December 24, 2007 2:28 PM

virginiacentrist said:

Stgla -

Yeah - but in real life, they just negotiate wage and benefit levels and keep wages for low skill jobs that require little training artificially high in arbitrary sectors of the economy like automobile production...

I have nothing against unions at all. I just find it odd to hear an economist arguing that they are the greatest thing since sliced bread...but Krugman is a hack at this point.

December 24, 2007 2:35 PM

stgla said:

In my world view, unions are indeed special interests and there's nothing wrong with special interests.  When politicians rail against them as a group they are just demagogueing.  

December 24, 2007 2:56 PM

airamerica said:

Wait, so the New Republic is calling out someone for an attack on a Democrat because it's a "stretch?"

Ah, the New Republic, America's Least Self-Aware publication.

December 24, 2007 5:08 PM

mollysimon said:

Krugman is looking for a job as fed chair.  What is that sound . . . ?  

December 24, 2007 9:21 PM

ifearpopmusic said:

Unions are an even worse monopolist in that they're able to tug on the political heartstrings of the "heartland" mentality. A monopolist corporation? Regulate (or, lately, don't). A monopolist group of hard-working Americans? No such thing.

December 25, 2007 12:42 AM

nancyirving said:

Come on.  A Democrat's calling unions a "special interest"?

This is just the latest in a series of Sistah Souljah moments from the senator from Illinois.

If this is what Obama has to offer progressives in the primary, I don't want to see what he'd be running on in the general.

December 25, 2007 4:18 AM

marcbrazeau said:

As far as efficiency goes, union workplaces tend to have higher productivity than non-union workplaces,  but with lower profits.  Gains in productivity are more important than profits for growth,  Wages and profits track on a mirror image - as one increases the other decreases.  There is a strong argument that as long as profits stay in the black, wage gains are more important to overall standard of living and keeping the demand side of the economy strong.

There is a new developing viewpoint amongst economists that standard of living is more important than a handful of indicators of business success and the steady drip drip drip of every 1/4 point change in THE Dow being reported as "news".  

What hasn't changed is that in the minds of the punditry unions are a homely, hopelessly outdated if necessary drag on the heroic efforts of the captains of industry.  And this is why Obama is giving labor a sisahsouljahing.  He has been campaigning to win the media primary and there is nothing like a Democrat giving labor the cold shoulder (even better the teachers unions) to make you look shiny and new to the kewl kidz.

December 25, 2007 7:20 AM

purcellneil said:

Ezra Klein makes an important point at TAPPED - and reminds us of one more reason to love John Edwards.

www.prospect.org/.../ezraklein_archive

"Moreover, I think the differences between the candidates are probably smaller than the primary process makes them seem, and that the larger story -- which has, to be sure, a lot to do with the pressure Edwards has exerted -- is the overwhelming progressiveness of the field, and the degree to which all of the major candidates have aligned themselves with liberalism in a way unthinkable even four years ago."

December 25, 2007 9:14 AM

dbhuff said:

Obama in "Audacity" actually talks about (wait for it) nuance in the 'special interest' category, claiming discomfort in lumping unions in with corporate lobbyists, and rights groups.  And talks about the difficulty of  his relationships with unions, because he will, for instance, talk about improved gas mileage despite what UAW wants.  On the other hand, gladly accepting the endorsement (and organizing support) of some elements of the SEIU who were representing "home healthcare workers on minimum wage" for instance.  

December 25, 2007 3:18 PM

virginiacentrist said:

nancyirving:

Where did you come from? I thought we chased all of the Hillary supporters away. As far "sister souljah" goes (defined as taking a swipe at the left to gain points with swing voters), I think the Iraq War resolution is a bit more important in the grand scheme of things than one sentence out of Obama's mouth about unions (or really about 527 groups that can raise unlimited money with no accountability). Who among us really believes that Hillary/Edwards supported the war because they thought it was right, rather than because they wanted to look tough (Sister Souljah)?

December 25, 2007 5:49 PM

dbhuff said:

hardly, I'm in Iowa working on the obama campaign on my christmas vacation...made 500 calls so far...how about you?  My point here is that like much of what I like about obama, it can't be summed up in one sentence, he's a deeper thinker than that.  And the heat he's taking here will not stand scrutiny, like most of the mud that has been slung at him.  Edwards has locked up the bulk of the union support (and whole precincts in Iowa because of that), and Hillary has been courting them as well, and while Obama's principals often lead him to similar position as the unions, he doesn't just check the box.  

Krugman wants revenge for eight years of GOP abuse, wants to crush into obscurity the neocons and theocons, and maybe he's right, but that's the main reason he doesn't like Obama.  And that's not what I think makes us better than the GOP...

December 25, 2007 6:02 PM

stgla said:

dbhuff, well said, and good luck to you in IA.

December 26, 2007 9:15 AM

teplukhin2you said:

Krugman has been razor-sharp on this issue, and totally consistent, for going on several years. His point is simple: the tide is turning in our favor. Large majorities of working-class and middle-class voters across the country, in red states and blue, are in favor of state intervention and other restrictions on the market in order to shore up working families against a level of economic insecurity that we have not seen in over half a century. These are political facts.

Obama's chosen _strategy_ in response to these facts, Krugman argues, is the wrong one. As Carville once said, when your opponent is drowning, throw him an anvil. Not a life preserver, not a friendly hand, but a f***ing anvil. In other words, it would be tactically stupid, and strategically self-defeating, for our side NOT to push and push hard for single-payor right now. You do it by taking an intelligent, focused, clear message about reducing economic insecurity directly to working families across the nation.

Huckabee, cracker that he is, gets this. McCain and his people will figure it out before next autumn. If our side tries to out-mush The Huckster in the nicely-nicely post-partisan department, we will lose yet again, end of story.

Advantage Krugman. This is no time for Bambi.

December 26, 2007 11:21 AM

psantillana said:

What is a key characteristic of Bambi? That everyone loves him. Keep that in mind.

December 27, 2007 12:30 AM

dbhuff said:

I'll allow as a 'crush them' strategy is a possible one, and that we certainly cant count on the GOP being good guys.  The issue is what's best for the country.  We have serious problems: healthcare, education, globalization, war, and a 51/49 universe won't help them.  If I believed that the anvil would work right now and get 60+ in the Senate, then we could seriously consider that as a way to solve the problems, but in fact in the best possible scenario we pick up 6 seats in the Senate, and Lieberwitz doesn't really count, so way short of cloture.  Therefore, we need someone who can unite, peal off moderates and instead of force closed ranks in the GOP, and frankly someone with some new ideas.  This is why I'm working on this campaign, the first time I've ever worked on a campaign in my life.

On the phone, I have talked to numerous folks who are re-engaging with the process because Obama lights their fire.  That's worth noting too, because these people will be NEW democratic voters (not to mention all the cross-overs for Obama).  So if you want a long term strategy for Democratic domination, this might be better than the anvil.

Lastly, Clinton was an outsider when he ran, not an establishment liberal, and changed the discourse for 8 years.  Personal foibles not withstanding, he changed the terms of the debate, but didn't really address the problems.  He set the table but was unable to really close the deal.  My concern with HRC is similar.

December 27, 2007 11:35 AM