When Paul Ryan falsely went after the stimulus package as an orgy of corruption and cronyism, I joked on Twitter that this was probably the last time you’ll hear about the stimulus in the next two weeks, Republican or Democratic. Time’s Michael Grunwald has written a highly-regarded book about the stimulus that I have yet to crack, which demystifies a lot about the law. But the real problem is the nature of this secrecy itself. This is a law that deliberately tried to hide its main tangible benefit, based on some questionable behavioral science, by taking a few dollars less out of weekly paychecks through lowering withholding instead of handing people $500. And that’s a perfect metaphor for the package itself. This had some benefits, according to the framers – hiding the tax cut increased the propensity to spend, folding some other spending into existing programs cut down on fraud and got the money out more quickly. But it made the stimulus a phantom program, one that, three-plus years later, we don’t remember for generating much in the way of economic activity, even though it did. There’s also the issue of the famous line from Omar, “If you strike at the king, you best not miss.” If you create a bill to generate a recovery, it had better actually generate a recovery. We’ve learned by now that just stopping something worse from happening economically isn’t the kind of thing you can sell to the public very easily. Certainly not when you decide to stop talking about it.
With that context, this is emblematic of how the stimulus failed as a political matter even if you believe it succeeded as a policy matter.
The Huffington Post reached out to a dozen stimulus recipients in the Tampa area near the Republican convention to see how the bill affected them. Of those who agreed to talk about it, only one initially knew that they’d received any stimulus money.
Jay Catalani didn’t know the $22,550 contract he received to electrify water meters inside veteran cemeteries throughout Florida came from the government.
“I had no idea. I was a subcontractor bidding a job through another company,” Catalani said. “My check didn’t come from the government. It came from the company we were working for.” [...]
Catalani initially denied that his company benefited from the government spending, but changed his tune after HuffPost told him the precise amount of the contract as listed on Recovery.gov.
“Nobody explained the stimulus and nobody explained the health care bill,” Catalani said. “It should have been just literally peeled through like an onion and it wasn’t.”
And yet, the stimulus has had a lasting impact on Catalani’s company, which now has 12 workers. “I ended up adding two employees,” he said. “I didn’t know it was a stimulus, but it stimulated my company. And I still have them today. Even though it was only $20,000, but … we were right on the cusp of, ‘Hey, should we bring more people on or shouldn’t we?’ We brought two guys on and ended up keeping those two people.”
Communicating in politics isn’t trivial. I know it’s de rigueur to laugh at the President for saying his biggest problem was not telling a story about his policies. And I don’t think it was the biggest problem (I’ll go with failing to defend the rule of law and perpetuating in the accountability space what we see in the economic space, a maelstrom of inequality). But at some level, it’s the job of a political party to articulate to the public the import of their actions and their tangible benefits. I don’t buy this idea that everyone “was moving so fast” that the communications channel couldn’t be use. And it’s not like you were going to talk the nation out of 8% unemployment. A set of policies appropriate to the task that created escape velocity in the economy would have worked more than talking about what did get provided. You wouldn’t have to talk as much then.
The problem comes in leaving these programs orphaned, rhetorically speaking. As well as designing them so nobody knew where the government ended and the private company began. “Recovery Act grant” was not turned into a household word. And we see this problem across the gamut of policies in the Obama age. The government program to aid borrowers in housing becomes you haggling with your servicer over the seventh time they lost your paperwork. The socialist health care law becomes first nothing of tangible benefit, then a website where you decide between Aetna or UnitedHealth. The stimulus becomes a check from a company so the recipient can brim at their own self-reliance and hard work that helped them achieve without the oppressive hand of government.
Sometimes a political faction has to tell a story to be effective.




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It depends on your definition of effective, or rather; it depends on what you believe they intend to be effective at.
If they wanted us to know, they’d tell us.
They, being both Democrats and Republicans don’t want us, and by ‘us’ I mean the 99% to think of government as being either effective or responsive beyond a very narrow range of possible actions.
If they were to explain, or maybe a better word is ‘admit’ that they are capable of effective action on the issues ‘we’ understand as important, it would raise our expectations to a degree that politicians would find intolerable.
As long as We the People continue to believe that our government is both incapable and unresponsive they are free to act with impunity in their primary function of protecting the 1%, living their narcissistic dreams, and building their own personal wealth.
A fascinating and insightful commentary. Viewing this from street level–where I sit with three empty houses on my block–I would have to say that positive effects of the stimulus are invisible; unless you make solar panels or pave highways–maybe make cars–that is likely the case.
We have a president who not only feels compelled to hide from talk of his stimulus and its positive effects, but who did nothing else to lift homeowners’ sense of ongoing crisis about the economy. The question is whether Romney can pump up our sense of despair sufficiently between now and November to make us vote fascist instead of neoliberal.
Not helping New Orleans or Detroit–those were easy calls for our “black” president. But not helping America’s collapsing suburbs. . . if Obama goes down then that will be the reason.
Where I live, signs were put up next to the projects being funded. I’m pretty sure one of the signs is still there, but unless you knew that a huge former factory (that was practically falling down after years of no occupancy) existed in that location, you’d merely see acres of remaining rubble and wonder “okay, what next?”. The stimulus money was spent so quickly that people will probably have a difficult time remembering how it helped and whether it helped.
When Grunwald was here at the Book Salon, I made the point that, in handling the politics surrounding the stimulus, Obama had totally discredited the progressive idea that government must spend when the private sector won’t. And that Krugman had warned him of the possibility long in advance.
Of course Grunwald would have none of it, so I bowed out. But from an economic standpoint, this was the greatest damage ever done to progressivism by anyone in my lifetime. Together with his stupid insistence that the federal government is just like a family, he set back all the causes he professes to believe in for decades — maybe forever.
And he still wants a Grand Bargain? Idiot.
democratic messaging is so bad as to constitute political malpractice. when it is this bad this long you have to wonder if the fix is in, the dems are really in the bag( like the washington generals who always lost to the harlem globetrotters)because they refuse to improve. fdr said nothing in politics is coincidence so why do dems consistantly put in a losing effort on messaging
As a couple other readers have said, the Democrats *do* have a message they’ve successfully put out. It’s just that it’s the same one the Republicans tell — “The government can’t do anything to help you.” “Private enterprise is the only solution.” “The business of America is business.”
Today’s Democratic leaders don’t believe in New Deal policies, and you can’t sell a narrative you don’t believe in.
I remember that exchange.
As for Obama discrediting progressives was the plan all along.I will not vote for this neo-liberal again.
BTW, This post is very well written. I can read news and analysis from dday that equals the best of the web. Amazing high quality work. In a fair world this would be pulitzer material.
Yes, but the details of the story matter.
The problem was that a story was told, and that it was not a good one in hindsight. I work with a mix of people (probably 60/40 left/right, respectively) and all of them remember seeing the Bernstein and Romer chart purporting to show what would happen with and without the stimulus back in 2009. That chart told a very detailed, percentage point by percentage point story about what to expect from the stimulus’ effect on unemployment. A look at that chart today shows it was off by a country mile; not only that, but it was so wrong so quickly. What kind of story does that tell? They also remember when the story of “jobs created” turned into the story of “jobs saved or created.” To their credit, I think, everyone here seems to accept that the latter is an accurate and fair way to view the effects of the stimulus, but the change in story reflects a certain hastiness and rashness that is not becoming.
In short, the people in my office who laugh at the President for saying his biggest problem was not telling a story about his policies are laughing because they did hear a story.
The problem with this ‘failure to tell the story’ narrative: it’s not a bedtime but a horror story. Billions went to banks, tens of thousands to small businesses, and my wife and I, amid a 2% paycut in her university professor job, stayed half and inch above water, watching people around us drown.
Obama–paternalistic type that he is–says he failed to get out there and tell the little voters about the happy ending the stimulus brought us.
Wonder why he didn’t do that?
Hint: it has something to do with use value.
I think America has lost more than a narrative. We have lost ourselves. “Emblematic” Great word! Society in its dumbed-down condition is “emblematic” of a society that doesn’t want to know too much about itself. Here’s a story….
I recall the moon landing, like yesterday. Today after driving by several let’s say educational facilities, I was struck by the fact that all but one had “Old Glory,” at half mast in honor of Armstrong’s passing. My blood pressure rose and anger set in. Then as the anger subsided I wanted to cry. How “Emblematic,” that today in America given all the benefits society has derived from the investments, stimulus of a bygone era that the technology they take for granted today, computers Ipads, cell phones, internet, cameras, you name it, all came from the program(s) which enabled the technological achievements, which Armstrong risked his life for, and flags at public educational facilities are not at half mast? Real respect! Real understanding of history!
“The Lost Narrative of the Stimulus” Mr. Ryan has benefited from all those investments, started by Ike. Perhaps he is to young to recall the sacrifices made, the sense of purpose and commitment to a common goal. He sure was not alive to live it.
Armstrong’s biggest concern was about “fuel,” when asked prior to mission. Enough fuel/energy to get back to command module, from the lunar surface in the LEM, and return to Earth. To bad America still has not figured out it all about the efficient use of energy, to sustain life. Not wasting trillions of dollars, using potential energy!
Shame on the schools for not having “Old Glory” at half mast. Shame on you Mr. Ryan, for having no concept of truth or history. RIP Neil Armstrong. You and others showed the world how to embrace, “…the homage of reason than that of blindfolded of fear,” and humanity has benefited greatly. This is the true “narrative of stimulus,” and our history. We’ve just been a little to distracted America…….
The ARRA strictly prohibited the federal government from hiring anybody. Maybe this was a concession to Republicans, but why give them anything in exchange for zero votes?
If we had a new WPA or CCC, it might have had some visibility. A lot of infrastructure built during the Great Depression is still in use today, having paid for itself long ago.
The beginning of your essay touched on an issue that is very important to me. It seems as though Democrats back down as soon as Republicans attack something. Why?
Example: Republicans treated “liberal” like a dirty word and Democrats not only stopped using it, but started attacking liberals. WTF?
Republicans are going to everything Democratic. Get over it (to quote Scalia, an especially noxious Republican, referring to Bush v. Gore). Get over it once and for all.
Democrats should never, ever base their actions on what Republicans criticize or may criticize. Do boldly and wholeheartedly what is correct and good for the American people and you will not have to worry ever about what Republicans say.
That said, Obama’s problem is not that he did not provide a narrative. It is that he and other Democrats went full-throatedly on the bank bailout and tepidly on the stimulus.
Obama’s problem is that people still don’t have jobs, not that he did not explain to them well enough and often enough why, in his opinion, they still don’t have jobs.
FDR had to invent the wheel as he went and did so brilliantly, including revising the bankruptcy act, creating the securities and exchange commission, and getting Glass-Steagall enacted, as well as creating federal conservation and construction programs from which the nation is still benefiting and which created jobs. FDR also had to figure out how he could make the Supreme Court stop declaring unconstitutional many of the programs he was attempting.
Obama could have learned from FDR’s example, if Obama had so chosen, about exactly how a president copes boldly and effectively with an economic crisis of massive proportions.
Obama could also have learned from FDR’s example, if Obama had so chosen, that you do whatever is necessary to handle obstructionists, instead of worrying about your image and your re-election.
Obama could have also learned from FDR’s mistake, if Obama had so chosen, that, when you are doing doing what is right and good for the American people, you do not back down because Republicans are acting like deficit hawks.
As a result, Obama did not hold on to the people who voted for him in 2008, not even everyone who has voted Democratic for the past twenty, thirty, forty or fifty years.
What can you possibly expect when you appoint Republican and New York Fed head Geithner as your Secretary of Treasury and reappoint Republican Bernanke to head the Fed?
Where was the Democratic version of economic policies supposed to come from?
Excellent!
The analogy of the federal gov like a household was/is one of Obama’s worst mistakes. It leads directly into the need to cut the deficit and the spending. And I agree that governent must spend when unemployment rises. Strange the admin is not making a really big thing about the need for more stimulus. Guess that comes back again to their belief that the deficit just has to be cut.
We had no signs around here about the stimulus. But I became aware that several road projects were the result of the stimulus. There was and still is more construction than there had been for years. But they are winding down.
On health care, bad as we think it is, there are plenty of things to be said about it, including the likely increase in employment. Yet they seem ashamed of it so say nothing.
Such are the reasons why this could welll be one term. I doubt Rommey will be this reticent about what he does these next four years. Hard to understand.
“If you create a bill to generate a recovery, it had better actually generate a recovery.” Etc.
Like the US wars against Iraq and Afghanistan, it is best to judge things like the stimulus package, especially when considering goals and motivations, not for what its creators said it would accomplish but for what actually happened.
“The stimulus becomes a check from a company so the recipient can brim at their own self-reliance and hard work that helped them achieve without the oppressive hand of government.”
And therein is precisely the narrative that was told
P.S. Oops, what W4B said @ 1. Yup.
Exactly.
Excellent point.
We got one of those projects woith one of those signs in my neighborhood. It says roughly. “This project cost $8 million and generated 24 jobs.”
Do the math…………
“I think America has lost more than a narrative. We have lost ourselves.”
Indeed.
A nation is merely a shared, collective belief in a set of rules and identity, which is to say it is an abstraction. The US as an institution was not written in stone and handed down by God (well, OK, some Fundies beg to differ here). It is not an immutable fact of nature. We all made it up. And we are all responsible for continuing to make it up on a daily basis–hence the indispensable need for mythology, group narrative, and history/memory that all must be related to who we were, are, and might become.
The old, dominant, collective story of “The Little Colony that Could” is gone because the US has become a global imperial power. The old origin myth has been partly replaced by “The Greatest Generation” but that is largely a white, middle class, center-to-right wing perspective. Without an inclusive, national narrative, what is left but exploitation by those with power and money and the concomitant selfish, atomized isolation of much of the remaining 99%?
As an example of the fervent need for a shared narrative–and not of the declensionist type, either, which can never do–we can see that the recent RNC Platform is absolutely nothing but identity mythology. (Have you read that thing? It’s a fucking child’s fantasy fairy tale!) These folks are so starved for a collective story about who they are that they have traded away even empirical evidence and rational thought to get it. A positive narrative about group identity is so essential–and so missing from their lives–that they have prostrated themselves before their oppressors in order to be told such a story. The narrative of American Exceptionalism as told by corporate raider Mitt Romney who has made his fortune firing those same Americans?! Ye fucking gods!
Perhaps when the Empire burns out (or fades away), citizens of the US will make up a new myth. Or perhaps a Balkanization will occur with multiple narratives. One of the reasons I enjoy the Latino immigrant parts of the US Southwest is because there one can find a palpably stronger sense of community than in most of the rest of the country.
“Human beings will be happier not when they cure cancer or get to Mars or eliminate racial prejudice or flush Lake Erie but when they find ways to inhabit primitive communities again.” –Kurt Vonnegut
Well, the math depends on the duration of those 24 jobs. :)
But of course that isn’t what we all imagine when we see signs like this. It makes you wonder what the folks were thinking who put those signs up. Perhaps they meant to further the myth that the government is wasteful and incompetent compared to the private sector? I don’t know. What’s your guess?
Indeed. And the rapidity with which that was accomplished leads me to believe that the plan was, all along, to service Wall Street and big corporations.
A long time ago I got into an argument with some people about Abraham Lincoln. They insisted that Abraham Lincoln was a slaveholder and that they read it in some book. I told them at the time that “If I read a book that said something that patently absurd and ignorant I’d stop reading and throw it across the room.” While I wouldn’t throw my computer across the room, I’d certainly stop reading David Dayen were it not for the fact that he still has influence.
You say you didn’t “crack” the book. Very believable after reading this:
The payroll tax holiday had nothing to do with the stimulus. That came with the budget negotiation deal almost two years later. Not that I should expect you to know that, you were too busy with your “OBAMA CAVES!” narrative to actually learn what was in the deal. I understand.
The fact that you don’t know this very basic thing is illustrative of the problem. There are too many in the media that feel that they can speak intelligently about politics without knowing policy. In fact they talk about policy as little as possible and favor speaking almost entirely about the politics. Thus the Obama administration has a dual disadvantage 1. They have to inform people about what is in the legislation and 2. They have to counter the IDENTICAL “Obama is weak and ineffectual” meme coming from both the left and the right.
That is a problem that Roosevelt did not have to deal with. Yes, there was politics but because there were fewer media outlets those that wrote for newspapers at least had to know what they were talking about. If someone made a whopper of a mistake like the one David made in his opening paragraph, he’d be fired and there’d be a big correction the next day.
Thus back then, the politics sprang from the policy. Today the PERCEPTION of the policy stems from the politics of the author. Both the left and the right ignore the policy and instead pursue the Democrats suck! meme. And the Obama administration has to fight both the meme and the policy ignorance. Since very few our even interested in reporting the policy. As David demonstrated, very few even know the policy.
If the supposed progressives started first by learning the policy and based their analysis on that I have no doubt that the politics would take care of itself.
But instead we have a major blogger for one of the most influential blogs revealing just stunning ignorance about not one, but two pieces of legislation. I don’t mind the fact that you’re stupid, David. It’s that you’re damaging and stupid. It’s that you’re dangerous and stupid. That you feel that you can- from a position of ignorance -lecture this President and still be taken seriously.