Robert Reich - Not Treasury Secretary

Howard Dean - Not HHS Secretary

Many left-leaning Democrats are asking the same question. Reich would have been a superb choice at Treasury and Dean an obvious choice at HHS. Both are tough, forward-thinking progressive politicians with total command of the briefs in question.  Many people inside and outside the Beltway are surprised that neither man was even in the running. Joe Trippi, a top Democratic consultant who ran Howard Dean’s 2004 Presidential bid, “I think Robert Reich would have been a better appointment than Geithner”.

And there are many others who agree.

So why aren’t they the nominees?

There are many, many reasons.

First, both Robert Reich and Howard Dean are liberals, and that means they don’t mesh with Obama’s all inclusive ‘new politics’ (or centrism as it’s otherwise known). They are mistakenly seen by the White House as skilled ideologues in a post-partisan world.

Secondly, both Reich and Dean would actually work to enact real change in the two most important domestic arenas in government. Simply put, they would define Obama’s presidency at home. Reich would lead the charge to right the economy by taking control of the banking system, tougher regulation and corporate realignment, while pushing hard for targeted infrastructure spending and less tax cuts, while Dean would crusade for the  universal healthcare system America needs. Is Obama prepared to put his first term in the hands of two guys who will actually do what’s necessary rather than what’s prudent? Naaah. Sadly, change is fast turning out to be a slogan, rather than a strategy.

Thirdly, the opposition to both Reich and Dean would have been deafening inside and outside the beltway. Installing Reich in Treasury would have been a huge red flag to Wall Street. And if one thing is becoming increasingly clear Obama is still clearly enthralled by the Street, despite the fact that it’s a huge part of why we’re on the edge of a worldwide depression. Put Dean in HHS and the sound you’d hear would be the health insurance lobby locking and loading their checkbooks for a long fight. Both these guys would signal that the Prez means business. As for the GOP, to suggest they’d be frothing at the mouth would be an understatement. Some of them might even cry.

Fourthly, there’s politics. Keeping two powerhouses like Reich and Dean out of the club might have seemed like a good idea to another powerhouse. According to some DC bloggers, Rahm Emmanuel has long been feuding with Dean and perhaps a word in Obama’s ear would have been enough to have the former Governor of Vermont and DNC chair frozen out of the health post. As for Reich, he remains an economic advisor to the President, but confirmed that he hadn’t been approached to be part of the Obama cabinet.

After the Judd Gregg and Daschle Debacles, HHS and Commerce remain open. There’s still time for Obama to do the right thing.

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Reich gave a spirited endorsement of Obama in April of last year and is a perfect choice for the Commerce or HHS positions, an emminently qualified, insightful, forward-thinking voice in stark contrast to the rest of the middle-of-the roaders around the cabinet table.

I emailed Robert Reich to ask him whether he’d been approached by the new administration and received the following response;

I have neither been approached about, nor have I sought, a cabinet
position in the Obama administration.

When one of the most innovative and progressive policy-makers in the US today is passed over by the Obama administration, it’s a fact that speaks volumes about the superficiality of Obama’s call for change.

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let's hope the ambulance is coming because there is no time to waste

In today’s NYT, Paul Krugman wonders why we haven’t heard more about major healthcare reform in the first few days of the new administration. His concern is that the economic crisis will only make the oncoming healthcare catastrophe that much more severe. It’s a very good point. Krugman surmises that perhaps solving the economic meltdown is dominating the agenda to the exclusion of almost everything else.

But Krugman doesn’t go far enough. What he fails to mention is that solving the healthcare crisis will, over the medium term, will dramatically help overcome America’s deep economic weaknesses.

It goes like this. Regardless of the plan adopted, and it’s most likely to be a build on Obama’s idea of offering a competitive government plan that will release the grip on our healthcare held by profiteering private insurance companies, the new system will have a very significant downward pressure on healthcare costs.

Right now the US spends around 15% of total GDP on healthcare, and have around 50 million uninsured. In the UK, with its single-payer system that figure is around 8%. Nobody is uninsured. It’s a cheaper, more efficient system.

The difference between the US and UK GDP spend is around 7% of GDP. America’s GDP last year was around $13 trilliion. 7% o that is $910 billion. That’s money released back into the economy – to be spent somewhere else.

So now let’s get conservative. Let’s say that over time we’re only able to reduce US healthcare costs to around 11% of GDP. That would still put around $450 billion a year and maybe more back into the economy.

Everyone would have more money in their pockets which would enable them to pay off debts, restoring confidence in lending, and freeing them to spend which would restore economic growth. There are multiplier effects too. US businesses, freed from their legacy costs will be far more competitive in the global marketplace. Oh, and the ranks of the uninsured would be reduced to zero.

It will take a few years to reach this happy place, but for an investment of say $100 billion a year to build this new system for five years (didn’t we just opt for $300 billion in useless short term tax cuts as part of the absurd stimulus package), we’ll break even in a few years. After that we’ll see a major economic boost far into the future, helping to shore up the US economy well into this century.

One more thing. That $450 billion a year freed up by healthcare reform is not borrowed, or printed, it’s not inflationary at all, and it’s not raised from the Bank of China, or some oil-soaked sovereign wealth fund. Instead it’s earned through efficiencies forged right her in America.

Major healthcare reform is an investment in our people, and our economy. It won’t be easy, but the President must not waver, and must not succumb to the myth of bipartisanship that would water down the legislation and dramatically lessen its impact.

Obama needs to act decisively. Our children and grandchildren demand it.

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You can bet that Obama’s healthcare reform package is going to contain an awful lot that the GOP Senate Caucus is going to hate. In about three seconds all talk of bipartisanship will be off, because they will filibuster. Or at least try to. My guess is that the Dems end with 57, (they will probably win Minnesota by a handful of votes). That means, including Bernie Sanders, and the recently exonerated Joe Lieberman, they’ll have 59 votes. That leaves them one shy to beat the filibuster.

Which is where the fair ladies of Maine come in…

Senator Susan Collins

Senator Olympia Snowe

Susan Collins and Olympia Snowe are the two most moderate Republicans left in the Senate, according to the National Review 2007 Vote Ratings. Last year they each voted on the “Liberal” side (according to the National Review Criteria) over 47% of the time. Before Obama starts negotiating with the GOP (never a particularly savory affair), he’ll go to Collins and Snowe first to help him beat the filibuster and get the legislation he wants through Congress intact. They’ll be hearing the words “It’s the President” from their assistants an awful lot in the next couple of years.

Collins and Snowe are pretty much borderline Republicans. A couple more important votes to the left and they might as well be in the Democratic Caucus. And while there are a number of Blue Dog Democrats who might be suspect on some key issues, going to Collins and Snowe first will always strengthen the President’s hand in dealing with his own party.

Collins and Snowe. Get to know those names.  Pretty soon, they’ll be bigger household names than even, I don’t know, Sarah Palin.

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