bail-out

This is an important debate. Rick Santelli was only the first breeze in a mighty storm, and the question is whether we can fuse the frustration to come with a positive, solutions-oriented alternative. -Patrick

I have read some speculation in the last few days that it may be possible for the GOP to make big gains in the House and Senate in 2010 if they “tap in” to the rage being felt by ordinary taxpayers against the savior based economy being created by Obama and the Democrats.

As a tactic, it would probably be a winner. But is there another way to achieve the same result without exacerbating the already deep divisions in American society? We may be in a period of low employment, sluggish growth, and high inflation for a while if the Japan model is any indication with their “lost decade.” This is especially true since the Obama administration shows no signs of lessening the flow of cash from the federal spigot. Taxpayers have seen where most of this money is going already and feel betrayed by a government that is seeking to reward failure and bad decisions. The chances are pretty good at this point that all the “stimulus” in the world is not going to head off a deep recession and the federal government is apparently setting itself up to decide who wins and who loses in this shakeup.

The inevitable populist backlash is predictable. The problem is that mass movements based on populist rage have generally led to untoward and unanticipated consequences. History is littered with these populist outbreaks – especially those that happen as a result of great cultural and economic changes being enacted by a perceived elite. The last major populist movement in America was George Wallace’s candidacy in 1968 (to a much lesser extent in 1964 and 72) that saw the Alabama governor get an astonishing 13.5% of the vote and carry 5 states in the general election. Wallace tapped into the rage and fear being felt by white, working class men who felt threatened (thanks to Wallace’s sneering, bigoted rhetoric) by African American agitation for equality. Nixon and the GOP then mainstreamed the tactic albeit using much more subtle language and even Clinton got into the act with his famous “Sister Souljah Moment,” assuring whites he wouldn’t pander to black racists like Jesse Jackson (Clinton is the only Democrat since JFK to carry any states of the traditional “Deep South.).