Obama's Challenge: America's Economic Crisis and the Power of a Transformative Presidency

by Robert Kuttner

Barack Obama approaches the Presidency at a critical moment in American history, facing simultaneous crises of war, the environment, health care, but most especially in the economy. If he is able to rise to the moment, he could join the ranks of a small handful of previous presidents who have been truly transformative, succeeding in fundamentally changing our economy, society, and democracy for the better. But this will require imaginative and decisive action as Obama takes office, action bolder than he has promised during his campaign, and will be all the more difficult given the undertow of conventional wisdom in Washington and on Wall Street that resists fundamental change. Decades of regressive politics and political gridlock have left America in its most precarious situation since the onset of the Great Depression. The collapse of the housing bubble continues, as does the financial meltdown it triggered; a revival of 1970s style stagflation threatens; incomes continue to lag behind inflation; our household and international debts pile higher; disastrous climate change looms; energy and food prices continue their escalation; and the ranks of un- and under-insured Americans grow as the health insurance system unravels. Facing their own great challenges, Abraham Lincoln, Franklin Roosevelt, and Lyndon Johnson rallied the American people to overcome deadlocked politics in order to achieve progressive transformations—abolishing slavery, transcending economic depression, and redeeming the promise of civil rights. In his own way, Ronald Reagan oversaw a grand shift in public attitudes and government direction. Each president used exceptional leadership to change the national mood, and then the national policy. By appealing to what was most noble in the American spirit, these presidents energized movements for change, and in turn put pressure on themselves and on the Congress to move far beyond what was deemed conceivable. They generated accelerating momentum for far-reaching reforms that proved politically irresistible. Solutions to our multiple challenges do exist, but they won’t be found in overly cautious or expedient quick fixes. With his exceptional skill at appealing to our better angels, Barack Obama could be the right leader at the right time to re-awaken America to the renewed promise of shared prosperity coupled with responsibility towards future generations and the international community with whom we share the Earth. Invoking America’s greatest leaders, Robert Kuttner explains how Obama must be a transformative president—or a failed one.

Genres: Politics, Nonfiction, Economics

224 pages, Paperback

First published August 25, 2008

Reviews

[Rebekah · Rating 5 out of 5]

I give this book four stars plus one for Gennady being in the acknowledgments.

The premise was pretty inspiring. I don't know whether this is a new concept or not, but I liked the idea that appealing to all (well, Kuttner says "both") parties doesn't have to entail compromise, that instead a "transformative leader" such as Obama can bring republicans around to embrace traditionally leftist policy, quickening the otherwise sluggish but apparently eternal leftward movement of society (my weird wording, except where in quotes- don't blame Kuttner).

The beginning of this book made me want to read more about LBJ, FDR, and Lincoln. The middle is written for people who are more interested in economics than I am. I'm just not informed enough to know whether I should take his word over anyone else's, but it is at least comforting to know there are well-trained economists out there who don't find our current level of national debt alarming. Once the book starts getting boring for you, I suggest flipping past the uninteresting parts and just reading the sections that capture your heart or imagination- I read all of the first half, and about half of the second half.

The best part for me, though, was the acknowledgments- what could be a better ending to an academic(ish) book than a "thank you" to someone who in your mind is still a rambunctious (read: crazy) nine-year-old?

[Tommy · Rating 5 out of 5]

Honestly this book isn't precisely about Obama as much as it is a historical account of transformational presidents. I think it frames the circumstances very well and lays out a coherent (and often counterintuitive) idea of how this country can be turned around and how it is at a prime position for a transformational leader (especially a progressive one since the current situation is so similar to when FDR was elected).

I think Kuttner also lays a fairly convincing case of how Obama can be Roosevelt-esque if he seizes this possibly pivotal moment in history.

One of the best things to take from this is that immediate fiscal restraint and budget balancing hysteria actually may be the worst thing in the long run for the country and the economy. There needs to be initial government spending to stabilize the economy, create jobs, and stimulate positive, sustainable, technological, and clean growth.

This type of program is absolutely what we need right now and this is simply not part of the republican ideals (nor is it the ideals of many fiscally conservative democrats).

Extremely relevant, well thought out, well written, up to date, applicable, and inspiring.

[Doug · Rating 3 out of 5]

I read this book because I wanted a primer in Keynesian economics before the stimulus debates started in earnest. But the book is light on economics and heavy on Kuttner's reading of Presidential politics. His ultimate point is that given the circumstances Obama will be a great or horrible president, with little room in between. His other major point is that any economic recovery package needs to be huge, and we should stop worrying about deficit spending.

[Joe · Rating 1 out of 5]

Reading this book through the prism of time and actual results of President Obama's, makes the contrast of the promised presidency and its results, so much more disparate. The author fawns over the yet-unelected-Obama, and lists solution after solution how Obama can fix the Bush administration errors. Kuttner says it should be easy to leave the Bush presidency policies in the past, and move forward onto a strong, democratic, government that can help everyone.

The primary solution from the author is to spend more, and use the presidential bully-pulpit to force change. This, Obama has actually accomplished over and over. His spending and transformative policies primarily consist of Obamacare and drawing down troop levels in Iraq and Afghanistan (both are things that the author recommends).

However, Kuttner also foresees how a weak economy would have a negative effect on the tax-and-spend policies that he advocates (and that Obama and other democrats) have since supported. Without growth, the economy has trouble bearing higher tax rates. So, Kuttner advocates investing HUGE sums in renewable energy sources, and using government power to mandate changes in other energy uses and standards. Only government can do this, because he tells us, "As it happens, the genius of free markets is rather tarnished right now." (pg. 160)

The thing I found most interesting was not any of the typical progressive support and "government is the only way to do things" mentality - it's that Kuttner actually takes a few swipes at Bill Clinton - I believe, because at the time this book was written, Hillary Clinton had taken some serious swings at Obama, and had fallen from front-runner, to a still very dangerous 2nd place candidate.

[Karena · Rating 4 out of 5]

I just finished reading this book. I hate that it took me over a month to get through it. I picked this book up at the grocery store in a bin full of reduced priced books. I had left it lying around the place, I didn't think that I was going to read it, until the day when I decided to take the chance to challenge myself with a genre that's outside what I normally would read, in other words its okay to put aside my fiction novels sometimes, to read a book that's going to give me food for thought.
This book was written before President Barack Obama was sworn in as the POTUS... It basically laid out the challenges of taking over the presidency after what was the distaster of the previous President before. Not only that but the author made comparisions of the Presidents from the past, and how they handled policy to how policy is handled today. It was really interesting reading about President Carter, as I was an infant during the time he was President. The author had some not so nice comments about President Carter, but he seemed like a nice person to me.
Some parts of the book I just read through, because govt is still a confusing subject to understand so I did the best I could to follow along with the author's points of view. And, I'm glad that I challenge myself in reading this book, and the book was 200 hundred pages, so I appreciated that author didn't drag out his points of view over 3 or 400 pages.

[Craig]

Written over the summer of 2008 (before the election), this book describes what Obama needs to do to become a transformative president---what he needs to do to redirect the country, much as LBJ, FDR, and Lincoln redirected it. Lord knows, after 8 years of Reagan and 12 years of the Bush dynasty, it is time for a new direction. Read this book to again gain confidence in the good the government can do, and to see how a leader can inspire and involve the citizenry. Read it to gain courage to be a liberal again, someone who believes in the good that is in people and that can be in government.

[Richard Harden · Rating 5 out of 5]

Anyone who supported / supports Obama should read this book, as it outlines challenges facing him and means of dealing with them, from a markedly progressive (not to be confused with liberal) viewpoint.

Anyone who continues to berate Obama as being too liberal needs to read this book, as it is much more progressive than Obama has been since being in the White House. It becomes very clear after reading it just how much he is trying to reach out to the Republicans, and just how unfair they are being in their criticism and in their refusal to budge from an ultra-right-wing stance on anything.

[Joseph Young · Rating 4 out of 5]

An interesting and at times prescient book. It foreshadowed some of the first problems faced by the Obama administration and explained tactics that could have been used to fight the ideological war. Unfortunately, as evidenced by the tea party foolishness, much of the advice has not been taken. The thoroughly Democratic point of view detracts from the book a little. The book has been written as much as Democratic propaganda as well as a Democratic reference for solutions to the problems currently being faced in the US political sphere now.

[Josh · Rating 3 out of 5]

I'm glad I read this book now, as I can compare what the author suggests with current events. It seems to me that Obama has read this book, or the author knows him well enough to describe ahead of time what he might do to help solve the economic crisis. The last couple of chapters felt a little hard to get through, but overall an informative look at what Obama has done, is doing, and still needs to do.

[David · Rating 5 out of 5]

Kuttner argues that we are at a crossroads in this country. The economic crisis requires a transformative president like
Lincoln, FDR, Lyndon Johnson of the civil rights era. He
hopes that Obama will be such a president.

A very worthwhile book. He doesn't just deal with Obama but with
a history and analysis of economic policy and presidents facing big
crisis.

[Thomas Schulte · Rating 3 out of 5]

I really breezed through this since it was written pre-election, and this very hopeful! The writer's analysis of other president's and his progressive, liberal suggestions do make for thought-provoking reading. He is definitely in the "Hope for Audacity" crowd and I am sure feels Obama is not left enough. I am sure history will appraise himas very centrist, over all

[David · Rating 4 out of 5]

robert kuttner really took a gamble by actually releasing this before the election but it paid off. i thought he did a good job of putting stuff in layman's terms (ie i could understand) about sometimes complicated issues like the economy and health care reform.

[Margaret]

Just got this from Beth and I can't wait to start delving into it.
Here's the good news/bad news dilemna about our new office:
It's a quick metro ride away - just three short stops.
BUT.. it's a crowded line and there's just not often room or time to read.

[Weavre]

ILL--Luzerne doesn't own it.

[mandy]

eh. fine book, but nothing terribly new or insightful here. Not holding my interest, so I'm letting it go.

[Callie]

I heard this author interviewed on Fresh Air and I'm excited to read the book.

[Lesley]

this guy is one smart cookie - he wrote this before the economic meltdown and it was released at the beginning of the DNC - joni was the developmental editor

[Timothy Jensen]

Good, timely read. Kuttner does a good job letting us in on what a brave man President Johnson was. I would highly recommend listening to several recent podcasts that have featured him.

[Mike · Rating 4 out of 5]

A bold program to help solve the economic crisis.

[Claire S]

Read about it here: http://www.nytimes.com/2009/01/18/boo...

Sounds very informative!

[Symeon]

Thus far:
More references to FDR, LBJ and Lincoln than you can shake a stick at.

[Linda]

I just listened again to the great interview on Fresh Air Terry Gross did with Kuttner, and I'm inspired to track this down.

[Atul · Rating 4 out of 5]

I wrote a full review of this book on my blog at http://www.toolness.com/wp/?p=221.

[Ietrio · Rating 1 out of 5]

Love your god given leader, fear the conspiracy of the reptilians / masons / Jews / whatever.