The Heartbreak of Premature Capitulation

There's
this old joke about the French Revolution. A group of prisoners is
lined up before the guillotine. One by one, their heads are lopped off.
Then, the next man is put in place. The lever is pulled, but the blade
stops just inches above his neck. This must be a sign of divine
intervention, the judge in charge declares, and the man is freed.

The
same thing happens to the next prisoner, and the next and the next.
Finally, as the very last man is prepared for execution, he looks up at
the mechanism and exclaims, "Wait! I think I see your problem!"

Ladies
and gentlemen, I give you President Barack Obama, providing needless
aid and comfort to those who would do him wrong, handing over his own
head without a fight, afflicted with a curious syndrome we men of
science have decided to call Premature Capitulation.

Backing
away from myriad campaign promises, giving in to health care, economic
stimulus and financial reform compromises -- in some ways these were par
for the course, the unfortunate price of governing and politics in a
polarized America. But in the few weeks since the midterm elections, the
affliction of Premature Capitulation has become more and more endemic,
whether it's dissembling on our policy in Afghanistan or backing away
from a moratorium on settlement building in the West Bank, announcing a
Federal workers' wage freeze (which would have been appropriate for the
higher ranking civil servants but is pandering to the right and
downright cruel to those government employees who barely make enough to
live on) or the continued kowtow to the moneyed interests who, if they
pat him on the back, do so only to find the place to insert their knives

And
now this deal to extend the Bush tax cuts for two years, continuing
breaks for the wealthiest Americans, as well as a similar extension of
the capital gains top rate -- 15% -- and a raise of the estate tax
exemption to $5 million per person, with a maximum rate of 35%. In
exchange, Obama is supposed to get a 13-month extension of unemployment
benefits for the long term jobless, an expanded earned-income tax
credit, equipment purchase write-offs for businesses, a reduction in the
Social Security payroll tax and continuation of the college tuition tax
credit.

Not
so bad, you may think; in fact, many are viewing what Obama has gotten
as a de facto second stimulus, but chances are Republicans would have
yielded to public pressure on unemployment, especially during the
holiday season, and as James Kwak points out on The Baseline Scenario
website (which he founded with economist Simon Johnson), "The Bush tax
cuts were always bad policy. After the last election, President Obama
will be able to accomplish precious little. But he could easily have
killed the Bush tax cuts and thereby done more good for our nation's
fiscal situation than anyone will be in a position to do for many years
to come. Killing the tax cuts would alone reduce the national debt by
roughly as much as the deficit commission's entire proposal. And killing
the tax cuts was the path of least resistance. Obama could have done it
by doing nothing. Or he could have done it by taking a strong negotiating position and being willing to walk away from the table...

"Instead we got a two-year extension as part of an overall package that adds $900 billion to the debt... And
Obama will no longer be able to say the tax cuts were a mistake made by
President Bush that he was letting expire. Now he owns the mistake."

What's
more, while the president's brief announcement of the deal Monday night
was matter of fact, the press conference on Tuesday - calling out
progressives as sanctimonious purists -- was a defensive display of
petulance more appropriate to the sandbox than the White House.

Mr. President, up to now at least, progressives have been the loyal opposition.
You're wasting ammo on the wrong guys. Stand up, aim in the right
direction, and fight. Because if you think the tax breaks will lead to
further logrolling or concessions from congressional Republicans you're
wrong. Now that they've gotten what they want, for the next two years of
your term they will not yield much of anything else. Their nihilistic,
scorched earth brand of politics leaves nothing behind but ash.

And so this latest compromise may prove a Pyrrhic victory. Or is that being premature?