Left, Right and the Creative Center: Understanding the Political Landscape in the Age of Obama

Left, Right, Center? © Panaite | Dreamstime.com

Amy Stuart in her reply to my response to President Obama’s speech on the deficit pointed out the need to clarify what the political left, right and center mean. I think she’s right. The terms have been used loosely and quite imprecisely. But on the other hand, their continued use suggests that there may be good reasons for the continued use of the schema.

I, myself, became convinced, after the fall of the Soviet Union, that the terms left and right were obsolete. I thought (it turns out incorrectly) that since it was becoming clear to just about everyone that there was no systemic alternative to capitalism, to the modern market economy, and since there really were simply alternative capitalisms, that we might best abandon the terms. Then we would pragmatically address the practical problems of the day, and express, identify and pursue various specific political commitments, e.g. individual freedom and social justice, and not put them in the large baskets of the left and the right. I thought that the terms hid more than they revealed, that it was too hard to find and consider specific commitments in these very large bins.

Yet, given the systematic polarization of our political world, I am convinced that I was wrong. These old categories still have life, helping illuminate distinctions and commonalities in the political landscape. And there is an additional benefit as it applies to the present American scene. The distinction between left, right and center provides a way to understand the creative political action of Barack Obama, who in this regard is a leader.

The notion of the political left and right has a history, dating back to the French Revolution: Monarchists, right; revolutionaries, left. It was used to understand the Manichean battles of the Twentieth Century: Communists and their sympathizers, left; Fascists and their sympathizers, right. And it also has been used to understand ordinary domestic politics: Republicans, right; Democrats, left, very conservative Republicans, far right, very progressive Democrats, far left (though I think this is a small group at best).

The notion of center is less sharp. Vaguely, it . . .

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Will Increased Exports Lift the Economy?

President Obama meets with economic advisors

President Obama’s goal of “doubling exports over the next ten years” seems like a win-win in that it will boost employment and reduce the troubling U.S. trade deficit. At first glance, his position makes sense politically and economically. But there is a problem. Because of the globalization of production that U.S. companies have championed over the past 20 years, exports from sectors other than agriculture require a much higher level of imports than ever before. As a result, the job creation from expanding exports is much lower than it was in the 1980s and 1990s.

In economic terms, the President’s goal of doubling exports makes sense. Foreign demand is expected to be the fastest growing component of U.S. demand in the coming years. And other, domestic, sources of economic growth are less promising than they have been in the past.

We can’t consume our way out of our problems. Consumption demand is going through a long-term adjustment from the build up of consumer debt over the past ten years. Private investment also is not a likely singular basis for recovery. It stopped being the most dynamic source of U.S. economic growth years ago. With fear of a double-dip recession, lots of built-up excess capacity and still inexplicably tight credit, private investment spending is unlikely to be a driver of US economic growth. Government spending has been politically excluded by the bi-elections. Federal spending has grown rapidly over the period of economic crisis, but calls for deficit reduction mean that the kinds of increases we have seen in government spending over the last few years may not be politically feasible in the future.

That leaves the export sector. With the dramatic growth rates of the emerging markets — most prominently Brazil, India and China, — the potential for growth in U.S. exports is considerable.

A rapid doubling of exports also makes sense politically, since it relies on the spending power of foreigners not the U.S. government, and in this sense is a “free lunch.” Moreover, if export growth is blocked by tariffs or exchange rate manipulation, the source of the failure lies outside U.S. . . .

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