New Yorker: Obamaism by George Packer(dominant characteristic="activist government, on every front")

Obamaism
by George Packer



Another week, another earthquake. Having already signed a nearly eight-hundred-billion-dollar stimulus bill, restored the rule of law to America’s treatment of detainees in its custody, developed plans to shore up the banking and housing sectors, demanded new regulation of private equity and hedge funds, proposed sweeping reforms in health care, energy, and education, and deepened the country’s involvement in Afghanistan and Pakistan, President Obama, in his tenth week in office, effectively put the government in charge of a large part of the automobile industry. And that was just Monday. By midweek, at the G-20 meeting in London, he had also committed the United States in principle to a new global regulatory framework for financial markets and, by some accounts, had resurrected the art of Presidential diplomacy. Then, on Thursday night, he won passage of a $3.5-trillion budget, whose tax and spending provisions mark the end of a long-term trend toward greater inequality.

Well short of Obama’s first hundred days, the dominant characteristic of his Presidency is clear: activist government, on every front. It’s harder to make out the contours of the philosophy at the core of this dazzling blur of action. Given the early and ample track record, there’s surprisingly little agreement over the nature of Obamaism. Obama’s signature projects defy grouping under a single heading, and, as a result, he has been criticized for inconsistency. To take one example, he forced the chief executive of General Motors, Rick Wagoner, into early retirement, and yet he has not called for the removal of any of the failed leaders of America’s financial institutions, like Bank of America’s Kenneth Lewis. He promised a federal guarantee of warranties for owners of G.M. and Chrysler cars, but he won’t put the government in temporary control of the banks, which are at the heart of the economic crisis. He is willing to spend $275 billion for homeowners’ relief, but he won’t let the government enter into the business of making direct loans. He has made health-care reform the ultimate test of his first year, but seems prepared to compromise on significant aspects of the legislation.

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What underlies so many of Obama’s decisions is an attachment to the institutions that hold up American society, a desire to make them function better rather than remake them altogether. Allowing the auto industry to die would create social havoc in communities around the country, and anything less than de-facto government control seems inadequate. So the President has risked a good deal of his political capital on the largest federal intervention in a sector of the economy since at least 1952, when President Truman seized the steel industry to avert a strike during wartime. Obama, announcing his plan last week, said, “We cannot, and we must not, and we will not let our auto industry simply vanish. This industry is like no other—it’s an emblem of the American spirit. . . . It’s what helped build the middle class and sustained it throughout the twentieth century.” Obama may not see a similar need to put the government in charge of the big banks, but he has also shown that he has no taste for such a disruption of the system—even if it were politically possible, and perhaps even if it were the most direct route back to financial health.

In his budget message to Congress, Obama invoked the value of fairness, but his budget proposals don’t create government programs—such as guaranteed-income measures or large numbers of relief jobs—that would establish equality from the top down. Instead, Obama seems to recognize that nothing has shredded the civic fabric in recent years more than the harsh inequalities of finance capitalism and the market ideology of a generation of American politics. This is not the rigid mentality of an engineer of human souls; it’s the attitude of a community organizer.

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