Thursday, September 11, 2008

This Election Is About Change and Compromise

Another re-post of NYTimes.com material.

81% in Poll Say Nation Is Headed on Wrong Track

By DAVID LEONHARDT and MARJORIE CONNELLY
Published: April 4, 2008

Americans are more dissatisfied with the country’s direction than at any time since the New York Times/CBS News poll began asking about the subject in the early 1990s, according to the latest poll.

In the poll, 81 percent of respondents said they believed “things have pretty seriously gotten off on the wrong track,” up from 69 percent a year ago and 35 percent in early 2002.

Although the public mood has been darkening since the early days of the war in Iraq, it has taken a new turn for the worse in the last few months, as the economy has seemed to slip into recession. There is now nearly a national consensus that the country faces significant problems.

A majority of nearly every demographic and political group — Democrats and Republicans, men and women, residents of cities and rural areas, college graduates and those who finished only high school — say the United States is headed in the wrong direction. Seventy-eight percent of respondents said the country was worse off than five years ago; just 4 percent said it was better off.

The dissatisfaction is especially striking because public opinion usually hits its low point only in the months and years after an economic downturn, not at the beginning of one. Today, however, Americans report being deeply worried about the country even though many say their own personal finances are still in fairly good shape.

Only 21 percent of respondents said the overall economy was in good condition, the lowest such number since late 1992, when the recession that began in the summer of 1990 had already been over for more than a year. In the latest poll, two in three people said they believed the economy was in recession today.

The unhappiness presents clear risks for Republicans in this year’s elections, given the continued unpopularity of President Bush. Twenty-eight percent of respondents said they approved of the job he was doing, a number that has barely changed since last summer. But Democrats, who have controlled the House and Senate since last year, also face the risk that unhappy voters will punish Congressional incumbents.

Mr. Bush and leaders of both parties on Capitol Hill have moved in recent weeks to react to the economic slowdown, first by passing a stimulus bill that will send checks of up to $1,200 to many couples this spring. They are now negotiating over proposals to overhaul financial regulations, blunt the effects of a likely wave of home foreclosures and otherwise respond to the real estate slump and related crisis on Wall Street.

The poll found that Americans blame government officials for the crisis more than banks or home buyers and other borrowers. Forty percent of respondents said regulators were mostly to blame, while 28 percent named lenders and 14 percent named borrowers.

In assessing possible responses to the mortgage crisis, Americans displayed a populist streak, favoring help for individuals but not for financial institutions. A clear majority said they did not want the government to lend a hand to banks, even if the measures would help limit the depth of a recession.

“What I learned from economics is that the market is not always going to be a happy place,” Sandi Heller, who works at the University of Colorado and is also studying for a master’s degree in business there, said in a follow-up interview. If the government steps in to help out, said Ms. Heller, 43, it could encourage banks to take more foolish risks.

“There are a million and one better ways for the government to spend that money,” she said.

Respondents were considerably more open to government help for home owners at risk of foreclosure. Fifty-three percent said they believed the government should help those whose interest rates were rising, while 41 percent said they opposed such a move.

The nationwide telephone survey of 1,368 adults was conducted from March 28 to April 2. The margin of sampling error was plus or minus 3 percentage points.

When the presidential campaign began last year, the war in Iraq and terrorism easily topped Americans’ list of concerns. Almost 30 percent of people in a December poll said that one of those issues was the country’s most pressing problem. About half as many named the economy or jobs.

But the issues have switched places in just a few months’ time. In the latest poll, 17 percent named terrorism or the war, while 37 percent named the economy or the job market. When looking at the current state of their own finances, Americans remain relatively sanguine. More than 70 percent said their financial situation was fairly good or very good, a number that has dropped only modestly since 2006.

Yet many say they are merely managing to stay in place, rather than get ahead. This view is consistent with the income statistics of the past five years, which suggest that median household income has still not returned to the inflation-adjusted peak it hit in 1999. Since the Census Bureau began keeping records in the 1960s, there has never been an extended economic expansion that ended without setting a new record for household income.

Economists cite a variety of factors for the sluggish income growth, including technology and globalization, and it clearly seems to have made Americans anxious about the future. Fewer than half of parents — 46 percent — said they expected their children to enjoy a better standard of living than they themselves do, down from 56 percent in 2005.

Respondents were more pessimistic when asked in general terms about the next generation, with only a third saying it would live better than people do today. (Polls usually find people more upbeat about their personal situation than about the state of society, but the gap is now larger than usual.)

Charles Parrish, a 56-year-old retired fireman in Evans, Ga., who now works a maintenance job for the local school system, said he was worried the country was not preparing children for the high-technology economy of the future. Instead, the government passed a stimulus package that simply sends checks to taxpayers and worsens the deficit in the process.

“Who’s going to pay back the money?” Mr. Parrish, an independent, said. “We are. They are giving me money, except I’m going to have to pay interest on it.”

Democrats have asserted recently that the lack of wage growth has made people more open to government intervention in the economy than in the past, and the poll found mixed results on this score.

Fifty-eight percent of respondents said they would support raising taxes on households making more than $250,000 to pay for tax cuts or government programs for people making less than that amount. Only 38 percent called it a bad idea. Both Senator Hillary Rodham Clinton and Senator Barack Obama, the Democratic presidential candidates, have made proposals along these lines.

More broadly, 43 percent of those surveyed said they would prefer a larger government that provided more services, which is tied for the highest such number since The Times and CBS News began asking the question in 1991. But an identical 43 percent said they wanted a smaller government that provided fewer services.

And although both Mrs. Clinton and Mr. Obama have blamed trade with other countries for some of the economy’s problems, Americans say they continue to favor trade — if not quite as strongly as in the past. Fifty-eight percent called it good for the economy; 32 percent called it bad, up from 17 percent in 1996.

At the same time, 68 percent said they favored trade restrictions to protect domestic industries, instead of allowing unrestrained trade. In early 1996, 55 percent favored such restrictions.

Dalia Sussman and Marina Stefan contributed reporting.

Some Thoughts on Wal-Mart Mom

Letter To The Editor, www.nytimes.com, Sept. 9 2008:
Re “A Heartbeat Away” (column, Sept. 8): So now William Kristol, referring to Sarah Palin, is trying to convince us that voters will find the idea of “a Wasilla Wal-Mart Mom a heartbeat away” from the presidency to be “no problem.”

Eight years ago a candidate sold himself as the kind of regular guy you’d like to sit down and have a beer with. George W. Bush went on to become president and brought our nation to a breaking point with two continuing wars and a ballooning national deficit, and ruined the United States’ reputation and standing around the world.

Given the similarity between Mr. Bush’s ideology and Ms. Palin’s (deeply religious, anti-choice, wants to drill in the Arctic National Wildlife Refuge, cut taxes and so on), I do not think our nation can continue on the same path for an additional four years.

Just the very thought should induce the public to steer as far away as possible from this conservative and toxic Republican ideology.

Michael Hadjiargyrou
Stony Brook, N.Y., Sept. 8, 2008

Alaska Gas Pipeline - NYTimes Article

Palin’s Pipeline Is Years From Being a Reality
Published: September 10, 2008,www.nytimes.com

ANCHORAGE — When Gov. Sarah Palin of Alaska took center stage at the Republican convention last week, she sought to burnish her executive credentials by telling how she had engineered the deal that jump-started a long-delayed gas pipeline project.

Stretching more than 1,700 miles, it would deliver natural gas from the North Slope of Alaska to the lower 48 states and be the largest private-sector infrastructure project on the continent.

“And when that deal was struck, we began a nearly $40 billion natural gas pipeline to help lead America to energy independence,” said Ms. Palin, the Republican vice-presidential nominee. “That pipeline, when the last section is laid and its valves are opened, will lead America one step farther away from dependence on dangerous foreign powers that do not have our interests at heart.”

The reality, however, is far more ambiguous than the impression Ms. Palin has left at the convention and on the campaign trail.

Certainly she proved effective in attracting developers to a project that has eluded Alaska governors for three decades. But an examination of the pipeline project also found that Ms. Palin has overstated both the progress that has been made and the certainty of success.

The pipeline exists only on paper. The first section has yet to be laid, federal approvals are years away and the pipeline will not be completed for at least a decade. In fact, although it is the centerpiece of Ms. Palin’s relatively brief record as governor, the pipeline might never be built, and under a worst-case scenario, the state could lose up to $500 million it committed to defray regulatory and other costs.

Contributing to the project’s uncertainty is Ms. Palin’s antagonistic relationship with the major oil companies that control Alaska’s untapped gas reserves.

Ms. Palin won the governor’s office in part by capitalizing on populist distaste for the political establishment’s coziness with Big Oil, and her pipeline strategy was intended to blunt its power over the process. Her willingness to take on the oil companies has allowed the McCain campaign to portray her as a scourge of special interests.

Now, though, she will need the industry’s cooperation if her plan is to succeed, and just this week, her office said she intended to reach out to the North Slope oil companies.

As Ms. Palin takes to the road to campaign with Mr. McCain, invoking the pipeline as a major victory, some Alaska lawmakers who initially endorsed her plan now believe it was a mistake. State Senator Bert Stedman, a Republican who is co-chairman of the finance committee, said that in its contract with the chosen developer, TransCanada, the state bargained away too much leverage with little guarantee of success.

“There is no requirement to lift one shovel of dirt or lay down one inch of steel,” he said.

A spokesman for Ms. Palin, Bill McAllister, denied that her recent statements about the pipeline were misleading. He said they should be viewed within the context of the project’s long and frustrating history, dating back to the Carter administration.

“When the governor signed the legislation giving her administration the authority to grant the gas line license to TransCanada, Alaska came closer than it has ever been to seeing the project actually happen,” Mr. McAllister said. “There is no denying that a major milestone in the project has been reached.”

Ms. Palin’s pipeline plan has its roots in longstanding efforts to access the trillions of cubic feet of natural gas under the North Slope, where some of the world’s major oil companies, including BP, Exxon Mobil and ConocoPhillips, have exploration and development rights. Congress has prodded all parties involved to develop a plan to tap the gas since at least the 1970s, but the private sector has been unwilling to assume the huge cost of building a pipeline without considerable government tax breaks and other concessions.

Ms. Palin’s push for a pipeline is central to her view that Alaska, with its North Slope gas resources, is a key to helping the United States develop an energy policy that embraces increased domestic production of gas and oil and the development of renewable and alternative energy sources.

Her predecessor, Frank H. Murkowski, had negotiated an exclusive pipeline deal with the major oil producers that proved unpopular with lawmakers and was never acted on. In the 2006 Republican primary, Ms. Palin wielded Mr. Murkowski’s pipeline proposal against him, calling it a sweetheart deal for Big Oil, which treated Alaska like a colony and faced little resistance from past governors.

Once elected, Ms. Palin set about fashioning an alternative that was essentially a 180-degree turn, intended to open up the bidding process to other companies. It also did away with incentives that a consultant for the Legislature estimated would have saved the oil companies an estimated $10 billion over 30 to 40 years. Ms. Palin also rehired key state oil and gas officials, including Marty K. Rutherford, who had quit, and Tom Irwin, who had been fired, after opposing Mr. Murkowski’s approach.

Mr. Irwin said Ms. Palin wanted to create an environment for a larger number of companies in the energy industry to openly compete to build the pipeline, rather than just handing a favorable deal to the North Slope oil producers. Ms. Palin’s objectives were enshrined in the Alaska Gasline Inducement Act, introduced just months into her governorship.

“We were going nowhere; the producers were holding us hostage,” said Ms. Rutherford, who heads Ms. Palin’s gas pipeline team. “They were demanding great value from the state with no guarantee to do anything for us.”

While Ms. Palin’s legislation did away with the concessions to the oil companies that she considered to be excessive, it committed the state to paying the winning bidder up to $500 million in matching money to offset costs of obtaining regulatory approvals and other expenses. Ms. Rutherford, whose team recommended the subsidy, said the governor was reluctant but eventually agreed that the state had to share in the risk to that degree; the $500 million amounts to about 10 percent of the projected state budget surplus this year.

The bill sailed through the Legislature in May 2007. Only a single lawmaker, the House majority leader, Ralph Samuels, a Republican, voted against it. When the state solicited proposals from interested companies, it soon became apparent that the big oil companies would not participate. One of them, ConocoPhillips, submitted a proposal outside the process, but it was swiftly rejected by the Palin administration.

Of the five companies that eventually bid, Ms. Palin’s administration chose TransCanada Pipelines, which operates 36,500 miles of pipeline across North America. TransCanada had previously tried to negotiate a pipeline deal with the Murkowski administration, but was sidelined by the governor in favor of the big oil companies, some officials who were involved in the talks said. That contributed to the rift that led to the departures of Mr. Irwin, Ms. Rutherford and five others from the state Department of Natural Resources.

The proposal that TransCanada negotiated with the Murkowski administration was structured differently from the current one and had no provision for a $500 million state subsidy, said two people who reviewed it and who spoke on condition of anonymity because the proposal remains confidential.

Of the Palin aides familiar with TransCanada from those earlier negotiations, Ms. Rutherford had an unusually close connection. For 10 months in 2003, she was a partner in a consulting and lobbying firm whose clients included Foothills Pipe Lines Ltd., a subsidiary of TransCanada.

Ms. Rutherford said in an interview that . . .