FDR and Obama, Pt. II: Advisers

One area where Roosevelt’s presidency appears a better model than Obama’s lies in the realm of their economic advisers. Put simply, Roosevelt brought in a team of economic consultants from a diverse set of ideological beliefs and he took them all quite seriously. This meant that, just as with Obama, Roosevelt listened to a number of fairly conservative, Wall Street confidants. Most prominent was his Treasury Secretary, Henry Morgenthau, who among other acts, played the key role in convincing Roosevelt in 1937 to push for a balanced budget, leading to an economic downslide which cost the New Deal significant support.

However, Roosevelt also had individuals such as Harold Ickes and Frances Perkins in his administration who pushed more left-wing economic notions. For example, it may come as a surprise that Roosevelt was not particularly keen to push for the creation of Social Security. It was his Secretary of Labor and long-time friend and ally Frances Perkins who provided the tireless voice, as well as a creative organizer, that eventually put the president fully behind creating the cornerstone of the U.S. safety net.

Turning to Obama, one is hard pressed to find comparable people. While I have seen some smart liberal bloggers make the case for Laurence Summers, even if he is not the devil some progressives believe, the man who championed financial deregulation so ardently cannot really be considered a standard bearer for U.S. social democracy. There certainly have been some progressive appointees working on economic issues: Craig Becker at the NLRB, Elizabeth Warren’s at the CFPB, and Hilda Solis at the Department of Labor for example. Yet, none of these people have ever really made up Obama’s core economic team – the people he most listens to in making policy decisions. Instead, from the start, Obama has relied on a circle of advisers such as Geithner, Summers, Gene Sperling, etc., who all essentially come from the same moderate wing of the Democratic Party.

Now, it can certainly be argued that a different set of advisers would have made no difference – all of the structural barriers remain. Certainly there is truth to that, but unless one believes the president is completely powerless before the whims of history, it is not hard to imagine how a wider spectrum of voices could have affected policy making. Take the stimulus bill for example. If, for example, a Joseph Stiglitz or Robert Reich had been a core part of that team*, it is easy to see a world where the initial proposed stimulus bill showcased more ambition – spending more money overall and concentrating those expenditures on more stimulative (and progressive) spending programs, instead of the significant percentage devoted to tax cuts. Of course, it is unlikely that such a stimulus would have passed as first offered, but in the inevitable whittling down that negotiations with Republicans would have produced, the end product could still have been larger and more impactful. Such advisers might also have pushed for more expansive programs to help struggling homeowners or tougher financial regulation.

In my next post, I will explore rhetoric as an issue uniting and dividing the two.

*Yes, Reich was a member of the economic transition team, but that is far different from being a member of the administration and being a constant counsel as the president makes decisions.