Andrus

American Presidents, Andrus, Baseball, FDR, Obama, Politics

Why Politics Ain’t Fun…Anymore

Posted on by christian

ap320763252878Jack Germond, a classic ink-stained wretch straight out of The Front Page, loved politics and politicians until he didn’t any longer.

Germond, who died this week at age 85, was definitely of the “old school.” He knew how to change a typewriter ribbon and I’ll bet he once had a bead on every pay phone in Iowa and in New Hampshire. Germond once said that he covered politics like a horse race because, while most voters do want to know what a candidate stands for, they also really want to know who has the best chance to win an election. But Jack was also old school in that he wanted to know about candidates as real people. What motivated them? What did they really care about? Could they think?

When the gruff, opinionated, smoking, steak-eating, Martini-drinking reporter hung it up in 2001 he told NPR’s Bob Edwards that he had grown “sick of politics.”

“I got sick of politics, Bob,” Germond said. “I particularly got sick of these two candidates this year. You know, you get to the point — you know, you’re 72 years old and you’re covering George W. Bush and Al Gore and you say, ‘How do I explain that to my grandkids?’ I mean, that’s terrible.”

Like a lot of us, I suspect, ol’ Jack grew tired of the phony rituals of modern politics, the lack of authenticity and the campaigns that have become almost completely driven by too young men (and some women) in suits and iPads who think they know everything there is to know about survey research, but have never met a sheriff or walked a precinct for a state legislative candidate.

Candid, Opinionated, Unpredictable

Ask any reporter – or voter – the type of politician they most appreciate and you’ll often hear that they like the candid, opinionated guy (or woman) who isn’t over programmed and not completely predictable. But increasingly we get just the opposite. If you’ve heard one Mitch McConnell speech or one Harry Reid soundbite you’ve pretty much heard all they have to offer, or at least all they think they can offer safely. The typical modern politician is so scripted, so committed to “staying on message” and so determined not to offend “the base” that they often say virtually nothing of importance. In place of real thinking that might generate a new idea the typical pol – the guys Germond got sick of – falls back on the safe and practiced. It may be boring, but it’s poll-tested.

Germond told the Washington Post that he got pretty stiff drinking Scotch with presidential candidate Robert F. Kennedy during a plane ride in 1968. “We started talking about the kids we’d seen in the ghetto that day,” Mr. Germond said years later. “He wasn’t trying to plant a story. He was really interested in the subject and really affected by what he’d seen.” Imagine that. A politician letting the human side show through. It used to happen, but not much anymore.

The statute of limitations has long since expired so I can safely reveal that former Idaho state senator, Lt. Governor and eventually Gov. Phil Batt used to drink with reporters. He actually seemed to like it, too. Years ago when Idaho Statehouse reporters were first consigned to quarters in the deep basement of the Capitol Building, Batt would often come down on a Friday night when the business of the legislative session was done for the week and have a pop or two with the scribbling class. As I remember it Jim Fisher, then a political reporter for the Lewiston Tribune, had a deep desk drawer that could accommodate a bottle of something that was technically illegal to consume on state property. Those of us fortunate enough to sit in on Phil Batt’s off-the-record “news conference” quickly discovered all the stories we’d missed during the week, the latest lobbyist out of favor and which legislator with a wandering eye was hitting on which committee secretary. I don’t remember that any stories were planted, but much insight was gained.

Politics was fun then, but rarely is anymore.

Obama the Predictable

The cerebral and increasingly buttoned-down Barack Obama seemed about as fun as a root canal when he took questions from the White House press corps before flying off to his Martha’s Vineyard vacation the other day. Obama was asked about Republican threats to shut down the government or even default on government obligations rather than approve funding for the hated Obamacare. Obama, of course, gave a completely predictable response.

“The idea that you would shut down the government unless you prevent 30 million people from getting health care is a bad idea,” the president said. “What you should be thinking about is how can we advance and improve ways for middle-class families to have some security so that if they work hard, they can get ahead and their kids can get ahead.”

“Middle-class families” must be the most focus group tested terminology in American politics, but it has almost nothing to do with what you know Obama is really thinking. Regardless of what you think of Obamacare wouldn’t you like the Commander-in-Chief to show a little emotion just once in a while? Imagine the cool POTUS popping his top with some Harry Truman-style rhetoric.

“Let me tell you what I think  of this kind of threat: let them try it,” Obama might have said. “The Affordable Care Act – Obamacare – is the law of the land. John Boehner has tried more than 40 times to undo it, but he can’t and he won’t. Shutting down the government or defaulting on our debt is just plain crazy. If my GOP friends want to be out-of-power for a generation, I’d advise they listen to the crazy caucus on the fringe and shut down the government – again. It worked so well for them last time.

“And while I’m on the subject, the next time a Republican says they want to do away with health insurance for all American ask them what they intend to replace it with? Does the Speaker or Sen. Rubio or Sen. Cruz have an answer to millions of Americans without health insurance? Do they like the idea that we have the most expensive health care in the world and far from the best health care in the world? What do they suggest would happen to the hospitals, doctors and insurance companies who are months into implementing a law that Congress passed and the United States Supreme Court reviewed and upheld? Boehner and Rubio and Cruz are without ideas. All they are sure of is that they don’t like me. I’m used to it. Now they should get used to the idea of me being in the White House for another three years.”

OK, I made all of that up, but you get the point. Authentic can’t be polled tested. You can’t easily fake being steamed. Candor in our politics has become as rare as Scotch in a desk drawer.

FDR is Still the Gold Standard

In her excellent new book – 1940 – FDR, Willkie, Lindbergh, Hitler and the Election Amid the Storm – historian Susan Dunn tells the gripping story of one of the most consequential presidential elections in our history. With war raging in Europe, the 1940 election came down to two issues – a third term for Franklin Roosevelt and the direction of the nation’s foreign policy. Late in his campaign against businessman Wendell Willkie, FDR took on his opponents with candor, humor and their own words. It is what politicians used to do.

“For almost seven years the Republican leaders in Congress kept on saying that I was placing too much emphasis on national defense,” Roosevelt said in an October 1940 speech at Madison Square Garden. “And now today these men of great vision have suddenly discovered that there is a war going on in Europe and another one in Asia! And so, now, always with their eyes on the good old ballot box, they are charging that we have placed too little emphasis on national defense.”

Then, to use his word, FDR indicted his Republican opponents using their own words and their own votes. Roosevelt listed by name the GOP leaders, including Willkie’s running mate, who had voted repeatedly against defense appropriations. Then, with perfect timing, the president made his audience laugh along with him at the poetic mention of three of his most partisan and obstructionist opponents.

“Now wait,” Roosevelt said with a big smile, “a perfectly beautiful rhythm – Congressmen Martin, Barton and Fish!”

Willkie later said, “When I heard the president hang the isolationist votes of Martin, Barton, and Fish on me and get away with it, I knew I was licked.”

The old school politics that Jack Germond loved have gone the way of the pay phone, replaced by 30 second attack ads, robo calls and bland and completely predictable rhetoric that is virtually devoid of passion, substance and humor. No wonder Jack got sick of politics. He could remember when it was fun and better.

Politics shouldn’t be blood sport, but having a little blood flowing in your veins is entirely appropriate. Modern politics would be a good deal more interesting and a lot less dysfunctional if politicians quit thinking that authenticity, candor, a little fire in the belly and a dose of humor were somehow political liabilities.

How about a little more passion like “Martin, Barton and Fish” and a little less babble about “middle class families.”

 

Andrus, Baseball, Boise, Cenarrusa, Crisis Communication, Hatfield, Idaho, Nobel Prizes, Oregon, Politics

The Middle Doesn’t Hold

Posted on by christian

howard-deanLots of Democrats like Howard Dean the former Vermont governor because he can almost always be counted on to be a full-throated partisan. Cable news loves the one-time Democratic presidential candidate because he’s always ready to launch an attack the other side. Nothing subtle or nuanced about Dean. In his world the Democrats – make that the most liberal Democrats – are always right and the Republicans are a bunch of knuckle-dragging throwbacks to the 19th Century. He has nearly as little use for a Democrat who wanders off the party reservation.

Lots of Republicans, particularly the Tea Party wing of the party, love the Club for Growth and its mouthpiece former Rep. Chris Chocola because the Club and the former Congressman can always be counted on to attack any Republican who dares to veer, even ever so slightly, from the group’s unyielding anti-tax, anti-government agenda. The Club for Growth has established itself as the enforcer of GOP orthodoxy on taxes and the scope of government. As a Republican you cross this crowd with full knowledge that they know how to buy television attack ads and have money to burn.

Ladies and gentlemen of the jury: consider Exhibits A and B in the sad and troubling case of who murdered moderation in American politics. The loud and often unreasonable voices of guys like Dean and Chocola  increasingly dominate political discussion and they are largely getting away with the political murder of moderation because we’re letting them. If you enjoy dysfunction in Washington, D.C. keep rewarding the Deans and Chocolas. Their political oxygen depends on squeezing the last breath out of anyone who even looks like a moderate.

Dean, of course, has his own political action committee and says he’s “open,” despite the legendary “scream from Iowa” heard round the world in 2004, to another run for president in 2016. He’ll undoubtedly run as a divider and not a uniter. Dean made news in Oregon this week, which he no doubt wanted to do, for launching a Twitter attack on a prominent Democratic state senator who had the gall to buck her party on a couple of high profile votes during the recently adjourned Oregon legislative session. Sen. Betsy Johnson did vote with Oregon Democrats 90% of the time during the recent legislative session, but in Dean’s “no room for moderates” world the senator, because she crossed her party on a couple of issues, needs to be challenged and replaced.

Chocola was out this week with an equally bizarre attack on Idaho Republican Congressman Mike Simpson. The Club for Growth announced it had endorsed a novice Republican from Idaho Falls, Bryan Smith, who is challenging the widely-respected eight-term chairman of a House Appropriations subcommittee that just happens to be vital to Idaho. Club for Growth calls Simpson “one of the biggest liberals in the Republican Party,” which is nonsense bordering on political malpractice as anyone who really knows the Congressman can attest. Simpson is, by any realistic measure, a very conservative Republican. He’s gone down the line with the NRA, opposed Obamacare and has battled the EPA over budgets and regulation, among other things. What he is not is a knuckle-dragger always in lock step with the far right.

Challenger Smith, who the Club apparently recruited for a Simpson primary challenge by trolling the Internet, was endorsed because he opposed Idaho Falls city property tax increases and criticized the Supreme Court on its health care ruling. Quite a record. Sign him up. The guy sounds like he’ll dependably put his rock on the “no” button if, against all logic and likelihood, he should happen to make it to Congress.

Simpson, probably because he spent his formative political years in the Idaho House of Representatives, including a successful stint as Speaker, while a politically skillful and successful Democrat held the governor’s office, has never automatically assumed every person across the aisle is an opponent worthy of being savaged from Twin Falls to Twitter. Simpson actually thinks a legislator’s job is to try and make the government work. He knows his district’s economy depends on the Idaho National Laboratory (INL) and that contrary to Club for Growth-like thinking maybe, just maybe, he needs from-time-to-time to be able to work with an ideological opposite  in order to keep the Department of Energy budget working for the nation and his district. We used to call that politics and it still amounts to governing.

Simpson’s real concern to Club for Growth is that he has dared to speak what every sensible person in Washington and the nation knows to be the truth about the federal budget: To secure a long-term and stable fiscal situation for the country Republicans and Democrats must come together and address spending, entitlements and – brace yourself – future revenues. In other words, Simpson has said what Simpson-Bowles have said and what Warren Buffett has said, in fact what every responsible person in the country has said about the nation’s fiscal and budget policies. In short, Mike Simpson is a conservative Republican who understands that finding common ground on major issues isn’t treason, but rather statesmanship.

Howard Dean and his like on the political left and Chris Chocola and his ilk on the right play only one political note: a high pitched squeal that can best be heard by the most partisan folks in both political parties. Such silliness has been at the heart of the near death of moderation in our politics and in Idaho in the past it has given the state such stellar Members of Congress as former Rep. Bill Sali, once championed and elected thanks to the million dollar largess of Club for Growth. Sali’s inept and embarrassing single term in Congress was highlighted by his introduction of legislation repealing the law of gravity. It’s true. You can look it up.

Come election day here’s betting that Rep. Simpson in Idaho and State Sen. Johnson in Oregon will be returned to office. Their constituents like them and know them. Both of them seem willing to defend common sense, which thankfully some voters still appreciate. Others elsewhere who practice the once celebrated political art of moderation may not fare as well and what former Sen. Al Simpson of Wyoming calls “the 100% crowd” – those who insist on unbending fidelity to their way of thinking – will have won yet another battle against realistic government.

Once upon a time pragmatic voters in places like Oregon and Idaho rewarded stubbornly independent moderates like the late, great Republican governor and senator Mark O. Hatfield and the former Democratic governor and Secretary of the Interior Cecil D. Andrus. Hatfield built a career around charting his own course for Oregon in the Senate, often tilting against Republican presidents, and Andrus often publicly disowned the excesses of national Democrats and delighted in doing so while his Idaho constituents sent him to the Statehouse four times over three decades. Today such political heresy would spur a social media attack followed by a primary challenge.

Our national history tells us clearly that political independence and moderation really should be cause for celebration, but the political ayathollahs of the American left and right are as determined to slay the last visages of moderation as are the political absolutists who rule in Teheran.

Americans are united in condemning one group of fundamentalist crazies. We ought also unite in condemning those who fuliminate to kill moderation closer to home.

 

Andrus, Andrus Center, Baseball, Civil Rights, FDR, Film, Television

Jim Crow’s Playmates

Posted on by christian

One of the best things about the new film about baseball great Jackie Robinson is actor Harrison Ford’s portrayal of baseball executive Branch Rickey, the man who found the guts in 1945 to sign Robinson to a minor league contract with the Montreal Royals and then in the 1947 season, against all odds, brought the first African-American player to the major leagues.

By all accounts Mr. Rickey, as everyone called him, wasn’t much of a ballplayer himself. He only played in the majors for four seasons, had a career batting average of .239 and hit only three home runs. Granted it was the “dead ball” era, but those numbers don’t get you to Cooperstown.

Rickey got to the Hall of Fame on the strength of his success as a baseball manager and executive. He had a hand in three great and enduring innovations – the establishment of the farm system to identify and nurture talent, breaking the color line with the signing of No. 42 and late in his life helping start the Continental League, a proposed third major league that failed to get off the grass, but nevertheless ushered in expansion of baseball to new markets.

The great sportswriter Jim Murray said Rickey “could recognize a great player from the window of a moving train” and the great man’s nickname, “The Mahatma,” was recognition of his pioneering ways and the deep Christian faith that he wore on his sleeve. One contemporary said when Rickey met you for the first time he wanted to know everything about you, then set out to change you.

In the wake of seeing the Robinson movie – it’s a must for any baseball or history buff – I read a splendid piece by another great sportswriter Red Smith. Writing in 1948, the year after Robinson broke the Jim Crow barriers around baseball, Smith was reporting – and not with any surprise – about how little support Rickey had received from the other leaders of the national past time.

“A curious sort of hullabaloo has been aroused by Branch Rickey’s disclosure that when he went into the ring against Jim Crow, he found fifteen major league club owners working in Jim’s corner,” Smith wrote. “It is strange that the news should stir excitement, for surely it couldn’t have come as a surprise to anyone.” Those other owners – Red Smith called them “Jim Crow’s playmates” – were worried about alienating fans, suffering public abuse or hurting their investments. Most likely all three. Questions of morality often get snagged on the sharp edges of commerce. Morality wins, as it did in 1947, when a big man – make that two big men – act with a sense of righteousness and with history on their side.

It’s hard, I think, perhaps even impossible, for anyone born after the awful era of Jim Crow to grasp the degree to which economic, political and cultural forces were aligned to keep black Americans from jobs, health care, public services, the ballot box and the sense of decency that goes with simply being respected. It was a shameful, nasty and profoundly disturbing period of American history. One reason for young people to see the Robinson film, in addition to the well-told heroic story, is to get a taste of the appalling racism that Robinson and so many other Americans of color deal with every hour of every day.

A spectacular new book by Columbia University historian Ira Katznelson expands on the political implications of the Jim Crow era, and yes the implications still echo today, by exploring in detail the Faustian bargain Franklin Roosevelt entered into in order to push his New Deal agenda through a southern dominated Democratic Congress in the 1930’s. The Robinson story fits squarely in the history lesson Katznelson tells so well.

As Kevin Boyle wrote in reviewing Fear Itself in the New York Times, “[FDR’s] calculation was simple enough. Thanks to the disfranchisement of blacks and the reign of terror that accompanied it, the South had become solidly Democratic by the beginning of the 20th century, the Deep South exclusively so. One-party rule translated into outsize power on Capitol Hill: when Roosevelt took office, Southerners held almost half the Democrats’ Congressional seats and many of the key committee chairmanships. So whatever Roosevelt wanted to put into law had to have Southern approval. And he wouldn’t get it if he dared to challenge the region’s racial order.”

Franklin Roosevelt, Katznelson argues, made a “rotten compromise” with the southern politicians of his own party who dominated Congress in exchange for being able to govern effectively in a time of depression, war and deep and persistent fear. While FDR didn’t challenge a segregated culture, ironically the New Deal served to both prolong Jim Crow and made its demise inevitable. FDR’s “rotten compromise” fails as a profile in courage, but the Hudson River valley aristocrat who fancied himself a Georgia farmer eventually made so many changes in the way we use and view government that his New Deal made Harry Truman and eventually Lyndon Johnson possible.

In the same way that Branch Rickey, The Mahatma of baseball, saw a wrong and tried to right it, first Truman and later Johnson, fully understanding the political consequences, abandoned the old Democratic Party of Jim Crow and ushered in the civil rights era; an era of unending struggles, that still dominates politics and culture today.

Every time I read or hear about another effort to make voting more difficult for minorities in America or hear a politician suggest that “American exceptionalism” makes it clear we don’t have to worry about race and class in this “post-racial” time in our history, I’ll remember Jackie Robinson’s one-time Brooklyn Dodger teammate from Alabama Dixie Walker. Walker, a fine ballplayer and a career .306 hitter who lead the league in hitting in 1944, also led the push back against Robinson playing with the Dodgers. Walker demanded to be traded and drew up an anti-Robinson petition that he and other Dodger players were determined to present to club president Branch Rickey.

Dixie Walker’s career dried up after 1947. Rickey traded him to the lowly Pirates and he retired in 1948, but would come back to coach in the majors often working  without issue with black ballplayers. In his 2002 book The Era, the great writer Roger Kahn quoted Walker as saying: “I organized that petition in 1947, not because I had anything against Robinson personally or against Negroes generally. I had a wholesale business in Birmingham and people told me I’d lose my business if I played ball with a black man.”

Fear is a great motivator. History has a tendency to reward people who push back against it. Rickey and Robinson are in the Hall of Fame. Truman’s stock at a great president continues to rise. Johnson’s place as the president who sacrificed his party’s once invincible regional base in the south in exchange for civil rights legislation is secure. Dixie Walker told Roger Kahn the anti-Robinson petition was the “stupidest thing he had ever done,” and he regretted it for the rest of his days.

Dixie Walker was by all accounts a devoted family man who, as Harvey Araton wrote in 2010, was “without much formal education, [but] he was curious and informed. Representing N.L. players, he helped devise the major leagues’ first pension plan, suggesting its revenue be generated from All-Star Game proceeds.” None of that has helped erase the stigma of what Dixie Walker did when driven by his own fear during the season of 1947.

Time may heal wounds, but reputations are much harder to repair. The playwright said it:  “The evil that men do lives after them; The good is oft interred with their bones.” Fear itself stands in the way of so much.

 

American Presidents, Andrus, Andrus Center, Biden, Coolidge, Eisenhower, FDR, Garfield, Grand Canyon, Idaho Statehouse, Lincoln, Public Relations, Stimulus, Super Bowl

The Presidents

Posted on by christian

Every president, well almost every president, eventually gets his reappraisal. It seems to be the season for Calvin Coolidge to get his revisionist treatment. The 30th president, well known for his clipped Yankee voice and a penchant for never using two words when one would do, does deserve some chops for agreeing to be photographed – the only president to do so, I believe – wearing a Sioux headdress.

Ol’ Silent Cal came to the Black Hills of South Dakota to vacation in the summer of 1927 and the magnanimous native people who considered the Hills sacred ground made the Great White Father an honorary Chief. The president fished in what later became Grace Coolidge Creek in South Dakota’s Custer State Park – the Sioux were not as gracious to the park’s namesake – and a fire lookout is still in use at the top of 6,000 foot Mt. Coolidge in the park. The Coolidge summer White House issued the president’s famous “I do not chose to run in 1928” statement to the assembled press corps a few miles up the road from the state park in Rapid City.

But all that is just presidential trivia as now comes conservative writer and historian Amity Shlaes to attempt to rehabilitate the diminished reputation of Silent Cal. Shaels’ earlier work The Forgotten Man is a conservative favorite for its re-telling of Franklin Roosevelt’s New Deal; policies that in Shlaes’ revisionist hands helped prolong the Depression and made villains of the captains of Wall Street who, she contends, deserved better treatment at the bar of history.

Shlaes’ new book, predictably perhaps, is winning praise from The Wall Street Journal – “The Coolidge years represent the country’s most distilled experiment in supply-side economics—and the doctrine’s most conspicuous success” – and near scorn from others like Jacob Heilbrunn who writes in the New York Times – “Conservatives may be intent on excavating a hero, but Coolidge is no model for the present. He is a bleak omen from the past.”

As long as we debate fiscal and economic policy we’ll have Coolidge to praise or kick around. The best, most even handed assessment of Coolidge is contained in the slim volume by David Greenberg in the great American Presidents Series. Greenberg assesses Coolidge as a president caught in the transition from the Victorian Age to the modern. “Coolidge deployed twentieth-century methods to promote nineteenth-century values – and used nineteenth-century values to sooth the apprehension caused by twentieth-century dislocations. Straddling the two eras, he spoke for a nation in flux.”

Two facts are important to putting Coolidge in context: he took office (following the death of the popular Warren Harding in 1923) in the wake of the American experience in World War I, which left many citizens deeply distrustful of government as well as the country’s role in the world.  Coolidge left office on the eve of the Great Depression. A nation in flux, indeed.

To celebrate President’s Day we also have new books, of course, on Lincoln, as well as the weirdly fascinating political and personal relationship between Dwight Eisenhower and Richard Nixon. There is also a fascinating new book on the relationship among former presidents – The Presidents Club. David Frum writing at The Daily Beast wades in today with a piece on three presidents who make have been great had they had more time – Zachery Taylor, James Garfield and Gerald Ford. Three good choices in my view.

Even William Howard Taft generally remembered for only two things – being the chubbiest president and being the only former president to serve as Chief Justice of the Supreme court is getting his new day in the sun. The sun will be along the base paths at the Washington National’s park where the new Will Taft mascot will join Washington, Lincoln, Jefferson and Teddy Roosevelt for between inning races. Talk about revisionism. At 300 pounds Taft never ran for anything but an office.

One enduring truth is that every president is shaped by his times. (One day, I hope, we can say “their” times.) And over time we assess and reassess the response to the times. Reappraisal is good and necessary. A robust discussion of whether Calvin Coolidge’s economic policies were a triumph of capitalism or a disaster that helped usher in the Great Depression is not only valuable as a history lesson, but essential to understanding our own times and the members of what truly is the most exclusive club in the world – The American Presidency.

By the way, The Andrus Center for Public Policy at Boise State University will convene a major conference on “The State of the Presidency” on February 28, 2013 in Boise. The day-long event is open to the public, but you must register and can do so online. Hope to see you there.

 

2012 Election, American Presidents, Andrus, FDR, Minnick, Obama

Themes That Repeat

Posted on by christian

When Franklin D. Roosevelt ran for re-election in 1936 the American economy was in very tough shape. Unemployment was over 16%, farm prices were awful and American big business, staggered to its knees by the Wall Street crash of 1929, was recovering, but still limping badly.

Yet, amid the dismal economic news, Roosevelt had succeeded in his first term in passing tough new banking regulations, massive public works projects like Grand Coulee Dam on the Columbia River in Washington State were employing thousands and Congress had endorsed something called Social Security. FDR ran for re-election 76 years ago with a decidedly mixed record. He could tout major legislative accomplishments, but lots of Americans were hurting badly. Given the awful state of the economy and voter penchant for throwing out the incumbent when the economy stinks, the conventional political wisdom would hold that Roosevelt should have lost re-election. Obviously he didn’t.

Roosevelt scored one of the greatest political triumphs in U.S. history in 1936 when he crushed the Republican ticket by winning more than 500 electoral votes and failing to carry only two states. FDR’s campaign manager quipped, “So goes Maine, so goes Vermont” – the only states the Landon-Knox ticket carried. The president’s historic landslide also pulled dozens of congressional candidates along and the House and Senate were overwhelmingly Democratic.

If the broad outlines of the United States in ’36 exhibit a more than passing resemblance to the country this year then I believe you’re identifying some of the “themes” in American politics that have an endlessly fascinating way of repeating themselves. This is a subject I’ll be exploring this week during a public talk at Boise’s Main Public Library. The Wednesday, September 12th event is free and open to all. I hope you might consider coming out for a dose of politics and history. My talk is entitled: FDR and Obama: The Difficulty of Winning a Second Term.

But, back to themes. Social Security, broadly debated and badly mishandled in 1936 by FDR’s Republican opponent, Kansas Gov. Alfred E. Landon, is clearly a recurring theme in our politics. Social Security’s sister programs, Medicare and Medicaid, keep coming round again and again and are once more in the middle of the current presidential campaign. The GOP political talking point that a left-of-center Democrat – like Roosevelt or Barack Obama this year – is pushing the country to socialism is an argument as old as the New Deal. FDR’s critics went even farther with one saying the 1936 election was a contest between “Washington and Moscow.”

The evil excesses of big business or the heavy hand of regulation thwarting business is a steady theme in our politics, as is the role of the U.S. Supreme Court. The nastiness of race and religion are also recurring themes and each played a role in 1936 and each does today.

Roosevelt used the power of his anti-big business argument, his personal likability and his amazing communication skills to win re-election in 1936. Faced with many of the same issues and armed with many similar skills, will Obama be able to pull off what Roosevelt accomplished in remarkably similar conditions three quarters of a century ago? I hope you’ll join me Wednesday for a lively discussion of how the themes of our political history run smack into the current campaign.

 

 

Andrus, Baseball, FDR, Politics, September 11, Vice Presidents

When Conventions Mattered

Posted on by christian

William Gibbs McAdoo – that’s him in profile – is mostly forgotten to history today, but back in the day when delegates to national political conventions actually made decisions about the candidates for president and vice president, McAdoo was a political kingmaker.

By 1932 McAdoo had assembled a remarkable political resume. He married well – Woodrow Wilson’s daughter – and served as his father-in-law’s Treasury Secretary. He was also chairman of the then brand new Federal Reserve Board, managed the national rail system during World War I and was twice a serious candidate for president. In 1924 McAdoo came within an eyelash of winning the Democratic nomination before losing out when the convention turned to a compromise candidate after struggling through 103 – you read it right – 103 contentious ballots. That still qualifies as the longest convention in American political history. One wag quipped that New York had invited the Democratic delegates to visit The Big Apple, not to move there permanently. The convention lasted 17 long, long days.

McAdoo was mounting a political return in 1932 just in time to put him in position to be a kingmaker.  McAdoo was both a candidate for the U.S. Senate from California and the political leader of the large California delegation to that year’s Democratic National Convention in Chicago. In a word – McAdoo had influence and he used it.

The convention that eventually nominated Franklin D. Roosevelt was the last Democratic convention that required a two-thirds vote to nominate a standard bearer. That 103 ballot marathon in 1924 became a disaster for the party, but southern Democrats insisted on retaining the super majority requirement in order to maintain an out-sized role in the national party. As a general rule, if southern Democrats stayed together on a candidate they could usually name the man who would lead the ticket, or at least influence the shape of the national campaign.

William McAdoo knew all this in detail. He was born in Georgia and enjoyed substantial support among southern politicians, in part, because of two issues – booze and race. McAdoo was a dry – he favored prohibition – and his not so skillful navigation of the explosive issue of the Ku Klux Klan – he refused to condemn the Klan out of fear of losing southern support – was a major factor in his losing the 1924 nomination.

FDR, then the governor of New York, entered his party’s 1932 convention as the favorite for the nomination, but he hardly had the necessary votes locked up. His advisers actually contemplated an attempt to change the convention rules to require only a simple majority to nominate a candidate, but when word leaked out of what was being considered and howls of protest ensued, Roosevelt ordered his managers to back off. He would have to find the votes of two-thirds of the delegates to win.

Consider for a moment what the political drama must have been like in Chicago in late June 1932 and contrast that drama – and all its consequences – with the tepid, heavily stage managed GOP convention that groans on in Tampa this week and the similar Democratic event that will take place in Charlotte all too soon. The nation was gripped by a Great Depression in 1932, President Herbert Hoover was growing more unpopular by the day and the Democratic nomination seemed to virtually ensure the election of the man who would be lucky enough to claim it.

On the first ballot in Chicago nine different candidates received votes. Roosevelt led the pack and tallied 666 votes, a number far short of what he needed to secure the nomination. Facing a toough fight, FDR was able to add only 11 more votes on the second ballot, while a variety of favorite sons and two more serious candidates – Speaker of the House John Nance Garner of Texas and former Democratic presidential candidate and New York Gov. Al Smith – divided up more than 400 other votes.

On the third ballot Roosevelt polled just five additional votes and his managers were profoundly concerned that his momentum toward the nomination had stalled. If his vote totals began to actually decline on additional ballots, they worried, the convention might be stampeded to another candidate. Smith, for example, once FDR’s mentor, was determined not to give up the fight believing that he was entitled to one more run at the White House. Smith’s vote totals – he got 201 votes on the first ballot – remained rock solid through the third ballot and he must have felt that if he could hang on long enough the convention would turn to him again as it had done in 1928.

However it was Garner, a conservative southerner, who became the key to FDR’s nomination. Garner had the support, not surprisingly, of his own Texas delegation, but also enjoyed the support of newspaper baron William Randolph Hearst and William Gibbs McAdoo. It’s not clear that a smoke-filled room or bourbon was involved – Garner was a habitual cigar smoker and enjoyed a drink – but a deal was done and McAdoo helped broker the agreement. On the fourth ballot, it was agreed, the California and Texas delegations would switch support to Roosevelt and the stampede would be on for other delegates to join the bandwagon. Garner didn’t exactly hanker after the number two spot on the ticket, but as a loyal party man he agreed to accept the vice presidential nomination. Does anyone ever really turn down the vice presidency?

FDR secured the Democratic nomination on the fourth ballot – Al Smith still polled nearly 200 votes – and for the first time in history the nominee traveled by airplane to Chicago to accept the prize in person. The rest is history. Roosevelt went on to win a smashing election victory in November against Hoover.

William Gibbs McAdoo won his own election victory in November and served a single term in the U.S. Senate. His real legacy might be that he knew just when to cut a political deal; a deal that helped change history at a time when party conventions really mattered. McAdoo died in 1941 and is buried in Arlington National Cemetary. His tombstone notes his service as Treasury Secretary and in the Senate. It could honestly also call him a presidential kingmaker.

 

2012 Election, Andrus, FDR, John Kennedy, Johnson, Minnick, Religion, September 11, Vice Presidents

The Veep

Posted on by christian

As the analysis continues around Mitt Romney’s selection of Wisconsin Congressman Paul Ryan as his running mate a little history may inform how, generally speaking, unimportant the Number Two’s are to the eventual success of a national ticket.

For sure Ryan brings youth, partisan excitement, strong conservative credentials and a certain policy wonk attractiveness to the GOP ticket, not to mention the potential to put dependably blue Wisconsin into play in November. Still, to believe that a relatively unknown member of the House of Representatives really could help the ticket requires a major break with what history tells us about the running mate.

Only twice in the 20th Century – 1932 and 1960 – did running mates really make an electoral difference. In 1932, Franklin D. Roosevelt needed to give the second spot on the Democratic ticket to House Speaker John Nance Garner of Texas in order to secure his party’s nomination. In those long ago days, Democratic convention rules required a two-third vote of the delegates to bestow the party’s blessing on any candidate. FDR flirted with trying to change the controversial rule that had forced the Democrats to a marathon 103 ballots in 1924, but even the popular Governor of New York had to ultimately admit that he would have to find some way to command a super majority in order to secure the nomination.

Garner, a tough-talking, bourbon-drinking, cigar-smoking southerner, was a favorite of the party’s more conservative wing and had the backing of, among others, newspaper magnate and would-be kingmaker William Randolph Hearst. Garner also controlled a large block of convention votes from his own state, as well as from California. Facing a convention deadlock, FDR and Garner did what politicians used to do – they made a deal. Garner knew that he couldn’t get the nomination for himself, but could potentially deny it to Roosevelt. A dark horse alternative could have happened at the Democratic convention in 1932 and think for a moment how that would have changed history.

Cactus Jack, a the Speaker was called, threw his block of votes behind the more liberal FDR in exchange for the vice presidential nomination. The Boston-Austin axis was created and the powerful ticket – a New York patrician and a Texas populist – coasted to victory over the humbled Herbert Hoover. A vice presidential decision made a big difference in 1932.

Another unlikely pairing, a northeastern patrician and a wily pol from the Texas Hill Country, came together to win the 1960 election. John F. Kennedy was afraid he might lose Texas to Republican Richard Nixon, since Dwight Eisenhower had carried the state in the two previous elections, so he overruled his brother and campaign manager, Bobby Kennedy, and gave the Number Two spot to the Senate Majority Leader Lyndon Johnson. Arguably, Johnson not only helped the Democratic ticket carry his home state, but also helped ensure narrow Kennedy margins in a number of other southern states. Another vice presidential candidate made a big difference in 1960.

But, that’s it.

It’s difficult to find many other examples in our history – maybe 1864 when Lincoln created a national unity ticket with Democrat Andrew Johnson – where the second place on the ticket helped contribute to victory. More often vice presidential candidates have created problems rather than victories. Think of Sarah Palin four years ago or Sen. Thomas Eagleton, who was dumped from the Democratic ticket in 1972. And, more often than not I would argue, a vice presidential decision is made for personal rather than strategic reasons. It is, after all, the rarest of rare chances when one politician can completely remake another.

Harry Truman picked the older Alben Barkley, the Senate Democratic leader in 1948, because Barkley was loyal, Truman liked him and it seemed to be Barkley’s turn. There is evidence to support the contention that Nixon selected the virtually unknown Maryland Gov. Spiro Agnew in 1968 because Agnew was sure not to upstage the presidential candidate. When FDR abandoned Garner in 1940 – the eight-year vice president publicly disagreed with Roosevelt’s quest for a third term – Roosevelt insisted on the wonkish, not particularly popular Henry Wallace as his running mate. (Henry Wallace is the answer to a great political trivia question: Who went from being Secretary of Agriculture to the Vice Presidency?) If anything, Wallace hurt the Democratic ticket in 1940 and FDR in turn dumped the Iowan from the 1944 ticket in favor of Truman. The GOP candidate in 1940, Wendell Willkie, gave the Number Two spot to Sen. Charles L. McNary of Oregon, primarily because McNary was well-liked in Washington and had the political experience that the businessman Willkie lacked.

So, Paul Ryan may – or may not – turn out to be an inspired choice as Mitt Romney’s running mate, but if he actually helps the ticket to victory in November he’ll be running in the face of much political history. A safer political bet would be that a relative unknown Congressman from a Midwest state with a long paper trail of controversial votes and policy positions will prove to be a drag on the ticket. There is little precedent to support the idea that a vice presidential candidate is the “game changer” that the pundits have been discussing since last weekend.

 

American Presidents, Andrus, Baseball, Biden, Britain, FDR, Lincoln, Obama, Politics, Reagan, Reapportionment, Truman

Action This Day

Posted on by christian

The (Almost) Case for Unilateral Action

In September 1940, just in front of the election that would make Franklin Roosevelt the first and only third-term president, FDR engineered an audacious deal with British Prime Minister Winston Churchill.

In exchange for gifting 50 aging, World War I vintage U.S. destroyers to the besieged British, Churchill granted the American president 99 year leases on a number of military bases in the Western Hemisphere. The destroyers for bases deal was loudly condemned by FDR’s critics who called it a raw presidential power play. As critics correctly pointed out, Roosevelt acted on his own motion, going behind the back of Congress to cut his deal with Churchill. History has for the most part vindicated FDR’s power play and many historians think the U.S. actually got the better of the deal.

The 1940 action by Roosevelt may be one of the greatest examples of a president acting unilaterally, but our history is replete with similar examples of presidential action on a unilateral basis. One of Theodore Roosevelt’s gutsy unilateral moves as he was nearing the end of his term created millions of acres of forest preserves – today’s National Forests – and protected the Grand Canyon. Lincoln’s Emancipation Proclamation was an act of presidential leadership that is almost universally praised today, but at the time the Great Emancipator cut Congress out of the loop and acted alone.

Now come criticism of Barack Obama’s unilateral action to order the end of deportations for certain young people who might otherwise be sent packing for being in the country illegally even as they have gone on to get an education, or work in order to become contributing members of our society. Critics charge the president acted for the most transparent political reasons or that he acted unconstitutionally or that he has now made legislative action on immigration more difficult. That last charge seems a particularly hard sell given the inability of Congress to act at all regarding immigration, but the real beef with Obama is that he acted alone.

Jimmy Carter used presidential action to protect the environmental crown jewels of Alaska, an action that ultimately forced Congress to get off the dime on that issue. Harry Truman informed Congress, but did not seek its approval regarding his 1948 decision to desegregate the U.S. military.

Of course all presidents overreach, but most do so by acting unilaterally in the foreign policy field, and that a place were unilateral action is often decidedly more problematic, at least in my view. It may turn out that Obama’s immigration action will be successfully challenged in a court of law or the court of public opinion, but don’t bet on it. I’m struck by how often in our history when a president has taken a big, bold step on an issue were Congress can’t or won’t act that the bold step has been vindicated by history.

The American people have always tended to reward action over inaction. Ronald Reagan’s unilateral decision to fire striking air traffic controllers near the beginning of his presidency in 1981 is a good example. Now celebrated, by conservatives at least, as a sterling example of a president acting decisively in the public interest, the decision was enormously contentious at the time it was made. Now its mostly seen as an effective use of unilateral action by a strong president.

The early polling seems to show that Obama’s recent “dream act-like” action on immigration is widely accepted by the American public. The lesson for the current occupant of the Oval Office, a politician who has displayed little skill in getting Congress to act on many issues, might be that a little unilateral action on important issues is not only good politics, but good government.

George W. Bush got this much right about the power of the presidency: the Chief Executive can be, when he wants to be, the decider on many things. The great Churchill frequently demanded “action this day” in his memos to subordinates. The great wartime leader knew that power not used isn’t worth much; but action properly applied is indeed real power.

 

 

2012 Election, American Presidents, Andrus, FDR, Minnick, Obama, Pete Seeger, Romney

Stumbles

Posted on by christian

Obama: Not Doing Fine

Skillful politicians, it is often said, make their own luck. They have – or develop – the instincts to act, speak or hold their tongue at the right moment. The best of the best use language and symbols to connect over and over again with their constituents, or at least with most of them.

Politics is many things: policy, determination, intelligence and timing, including being able to read the other side and know how and when to push back from the clinch and land an effective counter punch. Politics is handling adversity, taking a punch and bouncing back. Politics is also performance and performance is the ability to convey a story, a story that connects both intellectually and emotionally.

Last week was the week when, I suspect, Barack Obama went from a presumptive favorite to be re-elected in November to, at best, an even bet. To say that the Obama campaign has a bad week is to say the Queen had a nice little party recently. It remains to be seen whether it was the defining week of this campaign that seems to last forever.

Obama’s no good, horrible, very bad week began with jobless numbers that showed a modest increase in unemployment and ended with the president, looking more petulant that presidential, making one of the worst rhetorical stumbles he’s made since the 2008 campaign. In between those two black Fridays came news that Republicans substantially outperformed Democrats in fundraising in the most recent reporting period.

If a gaffe in politics is defined as a politician speaking the truth, then Mitt Romney’s “I like firing people” and Obama’s “the private sector is doing fine” probably are gaffes. I’m guessing both men meant exactly what they said. Romney’s private equity experience, by its very nature, involved a lot of layoffs and Obama, in real danger of losing re-election due to a struggling economy, must be chaffing when he sees that corporate profits are screaming along and the wealthiest among us truly are “doing fine.”

The Romney camp is no doubt rejoicing that Obama’s well-oiled political machine seems to be seizing up. The president’s mighty oratorical skills don’t seem to have quite the magic they once did and unforced errors, the bane of soccer players and politicians, seem to descend on the Obama campaign like a host of locusts.

Strip away all the obvious political problems the president is dealing with; the persistently sluggish economy, congressional Republicans who refuse to deal with dramatically serious issues like the coming fiscal cliff of auto pilot budget cuts and tax increases and a euro crisis that seems to worsen by the day. All of those problems, serious as they are, might be minimized, particularly in a race against a lackluster campaigner like Romney, if Obama could begin to tell a coherent story about his first term and what a second term might look like. So far he hasn’t and as a result a stumble like the private sector is doing “just fine” sucks the air out of his efforts.

The two presidential campaigns that most resemble 2012 were Franklin Roosevelt’s race in 1936 during the Great Depression – unemployment was more than 16% on Election Day – and Jimmy Carter’s contest with Ronald Reagan in 1980. Carter’s campaign stumbled under the weight of the Arab oil boycott, high inflation and the kidnapping of U.S. hostages by Iranian militants.

Roosevelt won despite his economic challenges. Carter didn’t. The reason, I think, was Roosevelt’s ability (and Carter’s inability) to weave a coherent story about what the country had been through and what could happen in the future. Roosevelt also understood the importance in politics of selecting your enemy. In 1936, FDR defined his real opponents as the conservative, big business leaders of the country who resisted his New Deal reforms. He called them “economic royalists.”

If you wonder whether history has a tendency to repeat itself, read the words Roosevelt used when he accepted his party’s nomination for a second term in 1936.

“These economic royalists complain that we seek to overthrow the institutions of America,” Roosevelt said. “What they really complain of is that we seek to take away their power. Our allegiance to American institutions requires the overthrow of this kind of power. In vain they seek to hide behind the flag and the Constitution. In their blindness they forget what the flag and the Constitution stand for. Now, as always, they stand for democracy, not tyranny; for freedom, not subjection; and against a dictatorship by mob rule and the over-privileged alike.”

Talk about class warfare. Roosevelt defined his opponents as opponents of freedom and the Constitution and as “over-privileged.” Obama, on the other hand, has been unable to shake the accusation that he is attempting to fundamentally alter the American system. Roosevelt was fundamentally reshaping that system and he made the effort the centerpiece of his campaign for re-election.

Near the end of his acceptance speech in 1936, Roosevelt uttered some of the most riveting words you could hope to hear from the podium of a political convention.

“Governments can err, presidents do make mistakes,” he said, “but the immortal Dante tells us that Divine justice weighs the sins of the cold-blooded and the sins of the warm-hearted on different scales.

“Better the occasional faults of a government that lives in a spirit of charity than the consistent omissions of a government frozen in the ice of its own indifference.

“There is a mysterious cycle in human events. To some generations much is given. Of other generations much is expected. This generation of Americans has a rendezvous with destiny.”

Roosevelt went on to win 46 of the then-48 states, even as millions of Americans remained out of work. He won, in small part, because of a lackluster opponent – Kansas Gov. Alfred Landon – but more so because he summoned a hurting nation to join him in realizing a bright, new day. The current incumbent in the White House has dealt with many of the same issues Roosevelt confronted in the 1930’s. If he is to be re-elected he’ll need to tap into the mysterious cycle of human events and call forth for Americans a new meeting with destiny.

In short, Obama needs to tell a compelling, aspirational story about the future and why the country will be better off with him in charge. If he can’t – he’s looking more like Carter than FDR. Re-elections are always a referendum on the incumbent – what he’s done and what he says he will do. That was certainly the case in 1936 and 1980.

If the president continues to run his 2012 re-election campaign based on getting the better of Romney with an ever changing soundbite of the day, rather than explaining from where he has brought the country and where he plans to take it, he’ll lose in November.

 

Andrus, Baseball, Christie, Economy, FDR, Pete Seeger, Politics, Romney

House of Morgan

Posted on by christian

Too Big to Fail, Too Big to Manage

A little over one hundred years ago J. Pierpont Morgan ran much of the world’s business from an elegant office at 23 Wall Street in New York. The investment and commercial banking operations that J.P. oversaw financed railroads, mining, energy, steel and insurance companies. Morgan was big, so big that when the U.S. economy was on the verge of tanking in 1907, Morgan put a wad of money on the table and saved the day.

In the days before “too big to fail” became part of the national dialogue, the House of Morgan literally was too big and too powerful to fail. Morgan was the banker to the robber barons of the Gilded Age and as such earned the scorn of many a progressive politician. By the early 1930’s, with the old man, J.Pierpont dead since 1913, the House of Morgan finally got its comeuppance. The Glass-Steagall Act, also known as The Banking Act of 1933, passed the Congress, was signed by Franklin D. Roosevelt and the big banks, particularly The House of Morgan, had to separate investment and commercial banking. Glass-Steagall was a clear cut response to The Great Depression and the widespread belief that reckless speculation by some bankers had played a contributing role in the international economic crisis that began in 1929.

It’s worth noting that the Glass in Glass-Steagall was Sen. Carter Glass of Virginia one of the old-style southern conservative Democrats who dominated Congress during much of the New Deal period. Glass, a newspaper editor by profession, served in the U.S. House of Representatives, helped write the Federal Reserve Act and then served as Treasury Secretary under Woodrow Wilson. Franklin Roosevelt wanted the tough, no nonsense, very conservative Sen. Glass to come back to the Treasury in 1933, but Glass preferred to stay in the Senate and devote his attention to improving banking regulation and modernizing the Fed. In short, Carter Glass was an expert legislator in these areas who applied decades of experience to sorting out how the federal government – and this guy was no big government liberal – ought to regulate banking.

American banking was governed by Glass-Steagall until 1999 when the Clinton Administration led the charge to eliminate the last visage of the New Deal-era regulation that separated traditional banking activity – loans, credit cards, deposits – from the substantially more speculative and riskier investment banking that centers on underwriting securities. Then-Treasury Sec. Lawrence Summers called the elimination of the 1930’s law an “update” of old rules, which would create a banking system for the 21st Century. Just how is that “update” working out so far you’d be smart to ask.

Enter Jamie Dimon the man who now presides over the 21st Century firm that J.P. Morgan invented in the 19th Century. Dimon, whose bank lost at least $2 billion recently by speculating in what are not incorrectly called financial “bets,” will testify before the Senate Banking Committee on June 7th to provide, as chairman Sen. Tim Johnson (D-South Dakota) said, “a better understanding of this massive trading loss so we can take the implications into account as we continue to conduct our robust oversight over the full implementation of Wall Street reform.”

Sounds like Congress is finally set to get to the bottom of all this risk taking by Wall Street banks, but wait, don’t bet the house payment just yet.

So far Dimon’s explanation for the big losses his firm suffered has been what we might call the “we were stupid” defense. This from the guy universally regarded as the smartest operator on The Street. Dimon has called the trading – bets more precisely – on extraordinarily complex corporate-bond derivatives – hope Sen. Johnson knows what those are – a “terrible, egregious mistake” and he’s humbly admitted JPMorgan Chase has “egg on our face.”

Dimon is displaying excellent crisis management skills by admitting the obvious, his bank screwed up, but he is also the guy who has repeatedly condemned the Wall Street reforms contained in the Dodd-Frank legislation. That legislation, passed in the wake of the most recent economic collapse, stopped well short of re-imposing the kind of controls that once existed with Glass-Steagall, but Dodd-Frank nevertheless earns the widespread scorn of most Wall Streeters as well as conservative politicians beginning with Mitt Romney. Romney has condemned the JPMorgan risk taking, but also says he’ll work to repeal Dodd-Frank.

Here’s a guess – call it a policy bet – the Dimon appearance before the Senate committee will involve a great many speeches both chastising big bankers and federal regulators, but nothing much will change. Dimon will gracefully sidestep any real responsibility for the betting errors, in part, because everyone knows that even the smartest guy on Wall Street can’t possibly keep track of all the esoteric trading his minions are engaged in across the globe. Many commentators will again bemoan the reckless greed that drives the kind of speculation JPMorgan and its competitors engage in but, when all is said and done, legislators will not be able to tighten the regulatory screws on the excesses of Dimon’s firm and other banking houses, because they too have placed a bet. The Congress – both parties – are gambling that continuing to woo the campaign financial largess of Wall Street, while not engaging in real regulatory reform won’t continue to imperil the American economy. I hope they win the bet, but I wouldn’t put money on it.

Two things to know from the messy details of this new Gilded Age: vast amounts of money is being made by what can only be called the wildest, most uncontrolled speculation since J.P. Morgan reigned on Wall Street and, through all the months of anguish and pain that followed the financial meltdown in 2008, not a single Wall Street player has had to face the legal, let alone the moral, consequences of the kind of reckless behavior that Jamie Dimon says put egg on his face.

The New York Times reports that the fellow who made a bundle while JPMorgan was losing a bundle is Boaz Weinstein, an aggressive hedge fund manager – he made $90 million last year – who was smart enough and gutsy enough to understand that JPMorgan’s “egregious mistake” was another gambler’s opportunity. The Times says of Weinstein: “In the hedge fund game, a business in which ruthlessness is prized and money is the ultimate measure, Mr. Weinstein is what is known as a “monster” — an aggressive trader with a preternatural appetite for risk and a take-no-prisoners style. He is a chess master, as well as a high-roller on the velvet-topped tables of Las Vegas. He has been banned from the Bellagio for counting cards.”

If you believe modern capitalism is a zero-sum game where someone wins and someone loses, little of value is produced, few jobs are created, and vast amounts of money are at stake for a handful of gamblers, then the capitalism of Dimon-Weinstein is just what the regulator ordered. If, on the other hand, if you believe in what I’ll call old fashion capitalism where money is borrowed and invested in real enterprises that employ people and make things, then you might think that Washington, D.C., with its unwillingness to confront Wall Street gambling, is continuing to whistle past the next economic meltdown graveyard.

How else to explain that no one – not a person – has suffered even mild public rebuke, let alone jail time, for the series of decisions in housing and finance that brought much of the American middle class to its knees in 2008 and since. Not only has no one been held accountable, fundamentally – as the JPMorgan bets confirm – nothing has changed with the big banks. In fact, as David Rohde explained recently in The Atlantic, “The country’s biggest banks are getting bigger.”

“Five U.S. banks – JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and Goldman Sachs – held $8.5 trillion in assets at the end of 2011,” writes Rohde, “equal to 56 percent of the country’s economy, according to Bloomberg Businessweek. Five years earlier, before the financial crisis, the biggest banks’ holdings amounted to 43 percent of U.S. output. Today, they are roughly twice as large as they were a decade ago relative to the economy.”

Using World Bank numbers, JPMorgan Chase’s market capitalization is greater than the GDP of 130 of the world’s countries, including New Zealand, Iraq and Vietnam. Given such size and scope, it’s little wonder the big banks behave like sovereign nations.

So, the biggest get bigger and ensure their position as “too big to fail” and even alleged smart guys like Jamie Dimon admit that banks too big to fail are, by definition, too big to manage. The big winners in this modern capitalism are guys like Boaz Weinstein who is a good enough gambler to get himself banned from Las Vegas, a place that really knows how to manage risk, but is, as the Times article says, “practically a featured attraction on Wall Street. [Weinstein] attends galas and charity events, and is sought out to speak at big events. Pictures of him clasping a drink at last night’s party appear with regularity on business Web sites.”

By comparison old J.P. seems like a genuine piker.