Selling the Bailout


SELLING THE BAILOUT….One of the ongoing mysteries of the bailout plan is why the Bush administration did such a lousy job of selling it. As Ezra Klein points out, if this were the first term crew, the plan would have been rolled out with some kind of snazzy, disingenuous name (how about the Financial Reconstruction and Emergency Employment Act, or FREE?) and accompanied by a blizzard of fact sheets that completely misrepresented what the Act would cost and what it would do. Opponents would have been demagogued, talk radio would have been harnessed, and Bush would have been giving speeches and press conferences daily. So what happened?

Well, who knows? But I’ll take a few guesses:

  • This is no longer the White House of Karl Rove, Andy Card, and Dan Bartlett, and it shows.

  • Bush’s heart was never in this. He didn’t want to sponsor a bailout and only signed on under extreme duress when Paulson and Bernanke convinced him we were facing a genuine emergency. (This is ironic, of course, since some of the opposition to the bill has compared the administration’s “fearmongering” of the financial crisis to the runup of the Iraq war. This is 180 degrees backward. Bush has spent the last year desperately trying to ignore the financial crisis, not selling the country on a solution. If anything, distrust of Bush ought to convince you that maybe this bill is necessary after all.)

  • The main impetus behind the bailout bill was Henry Paulson and Ben Bernanke, who may be conservative but who aren’t hacks. A typical Bushian razzle-dazzle sales campaign just isn’t their style.

  • The events of the week of September 19th were so catastrophic that Paulson honestly didn’t think there would be any serious opposition to the bill. He figured it was like the Pearl Harbor Resolution: just draft up something short and simple, hand it over to Congress, and it would be approved 434-1 the next day. He and Bernanke simply had no idea that it would get the reception it did.

  • On a political note, Democrats are now in charge of Congress, which means the bailout bill had to pass through the Democratic leadership. The Bushies just aren’t used to that and didn’t really know what to do. So they flailed.

  • Bush and his staff still have no clue about just how low their political capital has fallen. They simply didn’t realize that even their own party would laugh in their faces even when faced with a genuine emergency. (On the other hand, I’ll bet they know now. This has been a very rude wakeup call for them.)

One way or another, this has been a monumental cockup. For more, check out David Colker and Tom Hamburger’s piece in the LA Times today. Nickel summary: they just totally screwed the pooch on this.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.