Although the pundits finished their grading of President Obama’s 100 days weeks ago I think it interesting what they did not talk about.
Most political pundits give President Obama an A+ for the politics for pushing through his agenda. If you look at our present political system as a three party system only one party is happy with the results. The left is happy because President Obama ignored his moderate rhetoric promises and lead the government in a significant lurch to the left. The moderates are in the worst shape. They are filled with “buyer’s remorse” since they enabled this administration to take power without a political safeguard. With the rise of the Tea Parties and the rout of the Republican moderates, the political winds seem to be showing that the American people are blaming the moderates for the economic mess. They expected a lot more wisdom from the only adult in the room. In the coming war over reining in government spending I think the moderates have a very difficult position with the lack of voter confidence. I suspect the next election will be especially hard on the moderates. I am not sure how the political pundits can give this administration an A+ when he has alienated the moderates and unified the conservatives. Instead of reducing the political polarization he increased it and the big losers were the moderates.
Although many people have already debated whether a “New Deal” economic plan is the best plan for a recovery, the most interesting aspect of the Administration’s economic plan is the way the they have alienated the business community. Recently I found myself relating to my wife how political risk plays a huge part in International Finance. To determine the feasibility of a project in a third world country, you are supposed to factor in the political risk with the financial and operational risk. When I took my International Finance course many years ago, the examples of political risk were Argentina and Nigeria. United States was the example of a place with negligible political risk. Recently polling suggests that the business leaders are considerably more pessimistic about the economy than the general population. The avowed desire to repay the TARP money back as soon as possible is another indicator of the business community angst over government interference and this troubled relationship. I suspect that the business leaders are looking at the United States like a third world country. Considering how poorly I perceive the government/business relationship is, it sure looks like this administration is planning to have a recovery without businesses.