Brownian Motion.

Well, first off, thanks, Massachusetts! To my many friends from the Bay State, I say this: Speaking as a son of South Carolina, I never, ever want to get the “you-hicks-are-keeping-us-back” routine from y’all again, thanks much.

So, yes, Scott Brown defeated Martha Coakley for Ted Kennedy’s Senate seat. And thus, in a truly bitter irony, a man who spent his life trying to achieve health care reform for all Americans has now been replaced by a guy sworn to kill the health care bill and armed with the 41st vote(?) that could potentially make it happen. (Yes, Virginia, it’s true. In our system, 41 > 59.) Well, in Brown’s defense, he has a nice truck.

Why did this happen? Well, everybody has a theory. Here’s mine, which boils down to two reasons.

1. Martha Coakley. I didn’t watch enough of the MA race to determine if she was a lousy candidate through-and-through, although I have my suspicions. Nonetheless, Ms. Coakley was undeniably a gaffe-prone standard-bearer. From calling Curt Schilling a Yankee to misspelling the name of the state in a political ad to, weirdly, insulting the very idea of glad-handing in public, Coakley was an out-and-out gaffe machine. Couple that with a lackadaisical campaign and the inexplicable decision to take an extended vacation in the heat of the race, and you have a recipe for disaster. There’s a reason we’ve been telling the story of the Tortoise and the Hare for a couple thousand years now.

2. Change. In fending off Rahm Emanuel’s charge that she’s at fault for this fiasco, pollster Celinda Lake aptly summed up the main problem here: ““If Scott Brown wins tonight he’ll win because he became the change-oriented candidate. Voters are still voting for the change they voted for in 2008, but they want to see it.” Put another way: All across the country, the current occupants of the White House tapped into a deep and strongly-felt yearning for a transformative presidency in 2008…and then spent pretty much the entirety of their first-year in office playing the same old tired in-the-Beltway reindeer games that made people ill in the first place. This is not change voters believed in, and it has made voters angry, or depressed, or both.

Equally demoralizing is the neverending spectacle of a stalled-out health care bill. If I’d hazard a guess, most voters aren’t really delving into the ins and outs of this all-consuming debate, particularly by Month Eight or whatever it is. But they can see just from casually following along that the Democrats are really struggling to get this done, that the White House has been letting the bill get bogged down and eviscerated in the Senate — first in August, and again in November/December — and that, from the Big Pharma deal to the disappearing public option to all of the Lieberman/Stupak/Nelson/Snowe shenanigans on display, the usual Washington rules are in full effect right now. Once again, this is not change people can believe in. With each passing month that the bill has languished, we Dems have looked weaker and weaker. And if you continually force voters to choose between venal and incompetent, they’ll tend to gravitate toward the former.

Now, the good news: 1. First, and this cannot be stressed enough, we have an 18-seat majority in the Senate. It’s 59-41 people…most presidents can only dream of having that kind of majority, Dubya included. So there’s really no good reason — none, zip, zero — that we shouldn’t see more progressive accomplishments from this administration in the year to come. It just takes an act of will. I don’t remember the Republicans getting all kerfuffled about operating with 51 votes. Nor did Hubert Humphrey and the Johnson Senate have any problem with blithely ignoring the Senate parliamentarian when it got in the way of legislation.

2. It’s January of 2010, i.e. almost a full year before the “real” election day. In other words, this Brown victory is really just a shot across the bow. And if the administration course-corrects now, we may even end up gaining a year in time — and several seats we might well have lost — had this lazy centrist drift continued on until next November.

Of course, that’s only good news if the administration and the Democratic Party draw the right lessons from yesterday’s defeat. Suffice to say, this afternoon, it does not look good: Enabled, as usual, by the Serious People™ who comprise the broken-down wreck we once called beltway journalism, all the usual suspects are currently blaming Coakley’s loss on “the Left,” or more specifically the hippie-liberal cast of Obama’s administration thus far. Uh, say what now?

It’s hard to answer this ridiculous charge any better than did the estimable Glenn Greenwald this afternoon: “‘In what universe must someone be living to believe that the Democratic Party is controlled by ‘the Left,’ let alone ‘the furthest left elements” of the Party? As Ezra Klein says, the Left ‘ha[s] gotten exactly nothing they wanted in recent months’….The very idea that an administration run by Barack Obama and Rahm Emanuel and staffed with centrists, Wall Street mavens, and former Bush officials — and a Congress beholden to Blue Dogs and Lieberdems — has been captive ‘to the Left’ is so patently false that everyone should be too embarrassed to utter it.“

Truer words and all that. If we want to stop seeing these sorts of Brownian upsets in the future, the answer is emphatically not to curl up within the usual GOP-lite protective camouflage and hope the flak dies down. People see through that malarkey immediately. (As Harry Truman is rumored to have said, “In an election between a Republican and a Republican, the Republican wins every time.“) No, the answer is to move forward from this point with the courage of our convictions, and to start delivering to American families the real and fundamental change they were promised a year ago. It’s just that simple, folks.

The Perils of LCD Politics.

“I don’t honestly know what this president believes. But I believe if he doesn’t figure it out soon, start enunciating it, and start fighting for it, he’s not only going to give American families hungry for security a series of half-loaves where they could have had full ones, but he’s going to set back the Democratic Party and the progressive movement by decades, because the average American is coming to believe that what they’re seeing right now is ‘liberalism,’ and they don’t like what they see. I don’t, either. What’s they’re seeing is weakness, waffling, and wandering through the wilderness without an ideological compass. That’s a recipe for going nowhere fast — but getting there by November.“

I already said my piece about this last week, and was going to let it drop for now. But this long essay by Drew Westen on the problems with Obama’s leadership so far is right on the nose and well worth-reading. “[W]hat Democrats just can’t seem to understand is that the politics of the lowest common denominator is always a losing politics. It sends a meta-message that you’re weak — nothing more, nothing less — and that’s the cross the Democrats have had to bear since they ‘lost China’ 60 years ago. And in fact, it is weak.“

The Myth of 11-Dimensional Chess.

“Obama supporters are eager to depict the White House as nothing more than a helpless victim in all of this — the President so deeply wanted a more progressive bill but was sadly thwarted in his noble efforts by those inhumane, corrupt Congressional ‘centrists.’ Right. The evidence was overwhelming from the start that the White House was not only indifferent, but opposed, to the provisions most important to progressives. The administration is getting the bill which they, more or less, wanted from the start — the one that is a huge boon to the health insurance and pharmaceutical industry.“

A day after Senate Democrats kill Byron Dorgan’s non-importation amendment in order to preserve the administration’s back-door deal with Big Pharma, the indispensable Glenn Greenwald takes the Obama administration to task for the final Senate product on health care, which, suffice to say, is looking pretty far afield from the House bill. (And all the while, the bought and paid for Joe Lieberman grins like the Cheshire Cat.)

I was going to wait until year-in-review post week to put this up, but now’s as good a time as any: From civil liberties to this Senate health care fiasco, it’s hard to think of any arena where this administration’s first year hasn’t been a tremendous disappointment. (Regarding the former: I didn’t mention this here earlier, but the brazen audacity of this passage from the president’s war-is-peace Nobel Prize speech made me blanch: “We lose ourselves when we compromise the very ideals that we fight to defend. And we honor — we honor those ideals by upholding them not when it’s easy, but when it is hard.” Uh, your Justice Department is not upholding them, remember? Is the president even aware of his own civil liberties record?)

Anyway, I keep being reminded of this line from my Obama endorsement of January 2008: “There’s a possibility — maybe even a strong possibility — that he’ll end up a Tommy Carcetti-like president: a well-meaning reformer outmatched and buffeted to and fro by the entrenched forces arrayed against him.” Well, welcome to the Carcetti presidency, y’all. The only surprise so far for many of us is in how little he’s actually even tried to enact meaningful reforms. But I guess once the president surrounded himself with the exact same GOP-lite people we’d spent months trying to defeat in the Democratic primary, the writing should have been on the wall. This will not be change we can believe in. A New Day is not dawning. And the president is not really with us — We’re going to have to do the heavy lifting for reform next year without him.

Things I Learned from the Death Panels.

“The ‘death panel’ episode shows how the news media, after aiding and abetting falsehood, were unable to perform their traditional role of reporting the facts. By lavishing uncritical attention on the most exaggerated claims and extreme behavior, they unleashed something that the truth could not dispel.” In the NYT, Rep. Earl Blumenauer (D-OR) reviews the sad, sordid tale of Death Panel fear-mongering by the GOP this past summer.

In very related news, it seems the Republican National Committee’s health insurance plan, contra all their rhetoric on Stupak, has not only covered abortion services for the past eighteen years — it includes end-of-life counseling, a.k.a. the “Death Panels” of Sarah Palin’s nightmares. These folks really have no shame.

225-220.

“[L]ives are what’s at stake in this debate, and moments like this are why they sent us here — to finally meet the challenges that Washington has put off for decades; to make their lives better and this nation stronger; to move America forward. That’s what the House did last night when it brought us closer than we have ever been to comprehensive health insurance reform in America.”

After many months of work and a long Saturday of debate (not to mention quite a few flagrant and ridiculous GOP lies along the way), the House passes the Affordable Health Care for America Act 220-215. (Joining 219 Dems was one solitary Republican, Anh Joseph Cao of William Jefferson’s old seat, and he voted after the bill had already crossed the 218 threshold.) And, much thanks to the people who have fought for it all this time, H.R. 3962 passed the House with the public option bloodied but still intact.

Alas, the skeleton at the feast was a successful gambit by the heretofore unknown pro-lifer Rep. Bart Stupak to use the necessity of health care reform to fundamentally alter the status quo on abortion. (Best tweet of the day, btw: “‘Stupak’ sounds like a political action committee for morons.”)

Stupak forces like to say they’re just upholding existing law with this amendment, which already states that federal funds will not be used to pay for abortions. But, in fact, this amendment goes further — it prohibits not only the public option but private insurance companies who operate in the exchange from offering abortion services to people who receive subsidies. Or, in other words, low-income women are going to be S.O.L. for starters, with mission creep ultimately denying more and more women reproductive choice and/or necessary medical procedures. (Stupak to women — don’t miscarry.)

On one hand, the good news is that Stupak’s gambit is pretty much dead in the water in the Senate — even the GOP isn’t warming to it. (And, while maintaining the usual “above-the-fray approach”for now — big surprise, I know — Obama has telegraphed he’s not a supporter of the idea.)

On the other, the Stupak situation shows one of the problems we now have as the majority party. Here we have a scion of the “Family” on C-Street playing shenanigans with critical Democratic legislation at the eleventh hour…and he was joined by 63 other Dems in getting the amendment passed. In fact, many of these look to be CYA votes by ostensible pro-choicers to shore up their moderate bona fides.

Even more troubling, 21 of the final 39 Democratic votes against health care reform voted for Stupak — i.e., they voted to screw up a bill they had absolutely no intention of supporting in the end. (Conversely, twenty Dems in GOP-leaning districts did the right thing — they voted against Stupak and for passage. They are listed here.) Simply put, these 21 are why primary challenges were invented.

Until congressional Democrats learn that bucking their left is just as — if not more — dangerous than prostrating themselves before the right, they’re going to continue to play these reindeer games. (To be clear, in almost all cases, it’s not like these holdouts’ issues with the bill came from the left.) And until these often craven middle-of-the-roaders feel the wrath of the stick as well as the carrot, we are going to remain locked in this dismal feedback loop where important bills are in danger of being endlessly watered down into “moderate” mush. (See also: no Single Payer, no Medicare +5.) And that’s just not change we can believe in.

Aside from the Recovery Act, the House hasn’t held as important a vote all year. And, if certain Dems can’t find a way to support critical Democratic legislation — legislation tempered to meet their approval, in fact — when the time comes, then don’t expect the progressive base to have their back just because they have a D by their name. The time to suffer such fools has passed.

In any event, Round 1 completed. Round 2, the Senate…

Hacker: Still Alive.

“In short, it’s no time to be despondent about the fate of the public insurance option. For sure, pegging rates to Medicare and obligating Medicare providers to accept these rates would be far preferable, and a public plan with negotiated rates may do less to keep the insurers honest and drive down costs. But it’s still immensely valuable to give Americans an out — another choice — to let the insurers feel the heat of not being the only game in town. The fierce and continuing opposition of the insurance industry suggests that they think that a public option will prove a serious counterweight in an increasingly consolidated private market.”

In TNR, Jacob Hacker and Diane Archer make the case anew for a public option, specifically the one that made it into H.R. 3962. If all goes well, the House bill — recently endorsed by the AARP and the AMA — will get a vote tomorrow. (Yep, it’s a work day.) Update: Or later. Here’s the hold-up.

Regulators, Mount Up.

“Unfortunately, there are some in the financial industry who are misreading this moment. Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them. They do so not just at their own peril, but at our nation’s. So I want them to hear my words: We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses. Those on Wall Street cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall.“

In the bowels of Wall Street and one year after the collapse of Lehman Brothers, President Obama outlines his vision for financial regulatory reform, including a new Consumer Financial Protection Agency and stronger accountability and oversight in the existing regulatory regime. [Transcript.]

But — see also health care — some wonder if the President is going far enough: “The problem with concentrating on the banking system is that it allows the administration to present an overly optimistic assessment of its actions…Taking credit for stabilizing the financial system after feeding it with massive amounts of federal money is like a teacher bragging about turning around the academic performance of a failing student after handing them all the answers to the big tests.“

Continues economist Nomi Prins, in an analysis that dovetails quite tellingly with the health-care situation:”A strong CFPA is a sensible plan…This proposal has drawn the most ire from the banking community, so you know it’s good…But Obama’s reforms do not strike deeply enough. The banking crisis has been subdued, not fixed, because of enormous amounts of government assistance. Ignoring that fact, and failing to overhaul the sector, leaves us open to another crisis. And the next round will be worse, because there is now so much more federal money invested in the banks.”

Stuck in the Middle with You.

“That large-heartedness – that concern and regard for the plight of others – is not a partisan feeling. It is not a Republican or a Democratic feeling. It, too, is part of the American character. Our ability to stand in other people’s shoes. A recognition that we are all in this together; that when fortune turns against one of us, others are there to lend a helping hand. A belief that in this country, hard work and responsibility should be rewarded by some measure of security and fair play; and an acknowledgment that sometimes government has to step in to help deliver on that promise.“

As I’m sure you know, President Obama delivered his health care reform address to Congress last night. [Transcript.] My thoughts on it are mixed.

On one hand, speaking in terms of rhetoric, style, and delivery, this was an amazing speech, his best since the campaign days. While it’s an open question how long its effects will linger, the address clearly and decisively helped move the reform ball forward. And the emotional closer, featuring Ted Kennedy’s heartfelt final words to the President, was incredibly moving. In sum, it’s the exemplary address we knew Obama had in him on this issue, and he brought it home perfectly.

But, all that being said, I can’t shake the nagging feeling that [a] the policy being outlined last night didn’t quite jibe with the wonderful speech, and, as all too common of late, [b] the president far too readily threw his left flank — the very people who sweat blood and tears to get him elected — under the bus.

To take the second part first, Obama early on indulged in an irritating and textbook case of Beltway false equivalence by setting himself up as the sensible middle between those cuh-rrrrazy single-payer types on the left and the free market fundies on the right. (“There are those on the left who believe that the only way to fix the system is through a single-payer system like Canada’s…“) Uh, yes, and not so long ago, Mr. President, you were among them. I feel like I’ve said this several times recently, but painting the left as dingbats to shore up one’s centrist bona fides is a pretty tired parlor trick at this point, and it never gets any less insulting.

As an aside, on the way into work yesterday, I — and everyone else around the Metro — was accosted by guys in Grim Reaper costumes and bullhorns, telling us all, basically, that violence will erupt and we will all die if this health care bill passes. Y’know, there’s a term for telling people they’ll be killed if a political event happens — We call it terrorism. (As it turns out, there’s a term for wearing a hood while telling people they’ll be killed too.) Well, imagine my surprise to hear — from the president I’ve vocally supported for two years now — that me and my fellow clowns on the left are just as part of the health care problem as these jokers are on the right. I have to admit, it kinda tempers the enthusiasm.

And then there was the discussion of the public option. Yes, the President did make a case for the public option in last night’s remarks: “[A]n additional step we can take to keep insurance companies honest is by making a not-for-profit public option available in the insurance exchange…It would also keep pressure on private insurers to keep their policies affordable and treat their customers better.” In addition, the President correctly pointed out, “It’s worth noting that a strong majority of Americans still favor a public insurance option of the sort I’ve proposed tonight.“

But what the President giveth, the President also taketh away. The public option was clearly brought up in the speech after the non-negotiable section. (“While there remain some significant details to be ironed out, I believe a broad consensus exists for the aspects of the plan I just outlined.“)

Indeed, in case we missed the point, President Obama later made it clear: “To my progressive friends, I would remind you that…[t]he public option is only a means to [an] end – and we should remain open to other ideas that accomplish our ultimate goal.“

He then went on to float two “compromise” ideas that, for all intent and purposes, are public option killers: (1) a trigger and (2) co-ops. (“For example, some have suggested that that the public option go into effect only in those markets where insurance companies are not providing affordable policies. Others propose a co-op or another non-profit entity to administer the plan.“)

The trigger notion — the idea that if the insurance companies don’t fix the problem themselves, a public option would then be “triggered” into existence — is in effect, as one progressive well put it, a threat made with an unloaded gun. It’s kabuki theater, pure and simple, because everyone knows that Congress never pulls the trigger in question. (See also the cost of prescription drugs in Medicare Part D.) As Slate‘s Tim Noah recently ably pointed out, triggers are used all the time as “compromise” fodder, and what they really mean is we’re going to pretend to have addressed the problem and let things go on as they have. And, really, how much worse would insurance companies have to fail before this trigger kicked in? We’re talking about health care reform right now because the system is already broken.

As for co-ops, there’s a good reason they are the compromise that the insurance industry tends to favor. Most likely, they’ll be too small, weak, and scattered to bring real competition to the market.

So, granted, we don’t have a final bill yet, and there are many strong advocates of a public option in the House who will continue to fight for it. But, if the public option is as expendable to the administration as it seemed last night, then we may have some problems.

To wit, if a health care reform bill passes that has an individual mandate (i.e. everyone has to buy insurance), limited subsidies (to keep costs down), and no public option, than what’s basically happening is this: People are being forced to buy insurance they likely still can’t afford from the very private companies that are making vast amounts of coin from the current, broken system. If this sounds like a huge boon for private insurance companies, it is. (One might even start to think they had a hand in writing the legislation.) Yes, a larger risk pool should make health insurance cheaper — but without a public option keeping rates honest, what guarantee do we have that these savings would be passed on to the consumer?

Along those lines, President Obama also made the case last night for a tax on premium plans to help pay for reform. (“This reform will charge insurance companies a fee for their most expensive policies, which will encourage them to provide greater value for the money – an idea which has the support of Democratic and Republican experts.“) But, again, without a robust public option holding the private industry’s feet to the fire, what will stop said insurance companies from just passing these costs down the line, in the form of higher premiums across the board?

(I’ll confess to being confused about this element of the plan anyway. The article I just linked on this premium plan tax says: “The hope is that employers would buy cheaper, less generous coverage for employees, thereby reducing the overuse of medical services.” Uh…cheaper, less generous coverage for employees? That’s a good thing? And I’m by no means an expert on these matters — far from it — but is “the overuse of medical services” really the main problem afflicting our health care system? It sounds a bit to me like “too many notes.”)

All of which is to say that I really hope the substance of the final plan matches the beauty of last night’s rhetoric. Now, I understand the counter-arguments: As Paul Begala recently reminded us, the Social Security Act of 1935 had serious problems too, and look how that turned out. The great is the enemy of the good. Politics is the art of the possible, etc. etc.

I don’t disagree with any of that. But I also believe that leadership is the art of expanding the horizons of the possible. (Cue RFK: “Some men see things as they are and say why. I dream things that never were and say why not.“) We always knew that the President is a master of oratory, and that he would move us all with his eloquence when the time came. But, in setting their sights so low on this bill, the administration, in my view, have come close to squandering both the historical moment and the president’s once-in-a-generation gift.

A historical puzzle lingers over the entire health care reform enterprise at the moment: How is it, with a Democratic House, a filibuster-proof Democratic Senate, and a Democratic president, that the proposal for health care reform on the table basically remains to the right of Richard Nixon? (See also: The Family Assistance Plan.)

Well, the short answer, imho, is lack of meaningful campaign finance and lobbying restrictions. (A key problem that’s about to get a whole lot worse.) But I would also argue in favor of another cause. For decades now, Democrats have tried to find that safe happy moderate middle, while Republicans — flaks, representatives and presidents alike — have willfully and consistently pushed that center to the right. The president’s address, however magnificent and even moving at times, felt like another step in the same old vicious cycle. And at this crucial historical moment, I strongly believe it would be a better demonstration of “our American character” if we Dems — and this administration — showed the courage of our convictions in words and deed.

Blue Sky Mining.

“One of the bill’s co-sponsors, Rep. Edward J. Markey (D-Mass.), said: ‘The American people wanted change in our energy and climate policy. And this is the change that the people are overwhelmingly asking for.’ He called it ‘the most important energy and environment bill in the history of our country.‘” After much wrangling and a half-hearted GOP attempt at filibuster (which is only a prerogative of the Senate), the House passes the Waxman-Markey climate bill, 219-212. (Eight Republicans voted for it, 44 Dems opposed.) The “cap-and-trade” bill “would establish national limits on greenhouse gases, create a complex trading system for emission permits and provide incentives to alter how individuals and corporations use energy.” [Key provisions.]

There is some concern that the bill has been watered down too much out of political necessity: “While the bill’s targets may seem dramatic, they are in fact less than what the science tells us is required to avoid catastrophic warming. The 2020 target in particular is far too weak and quite easy and cheap for the country to meet with efficiency, conservation, renewables and fuel-switching from coal to natural gas.“

Still, environmentalists remain hopeful. “It is worth noting that the original Clean Air Act — first passed in 1963 — also didn’t do enough and was subsequently strengthened many times.” And, while the bill — which (sigh) gives away 85% of the new emission allowances (the heart of the “cap-and-trade” market hopefully soon to emerge) to interested parties — looks to “set off a lobbying feeding frenzy,” groups like the NRDC seem to agree that “[t]his is the best bill that can actually get through committee.”

Of course, now the bill has to get through the Senate, where the usual lions lie in wait. “”Senator Inhofe of Oklahoma said ‘It doesn’t matter,’ he declared flatly, ‘because we’ll kill it in the Senate anyway.'” And even some Dems are fatalistic about its prospects. “Mississippi Rep. Gene Taylor (D) voted against the measure that he says will die in the Senate. ‘A lot of people walked the plank on a bill that will never become law,’ Taylor told The Hill after the gavel came down.” Looks like Sen. Reid has his work cut out for him.

A Consumers’ Republic.

“The Federal Reserve was supposed to do this, but they were asleep at the switch.” In light of recent shenanigans, the Obama administration contemplates creating a new regulatory commission for the financial services industry. “Responsibility for regulation of consumer financial products is currently distributed among a patchwork of federal agencies. Some of these regulators regard consumer protection as a low priority. And some financial products are not regulated at all. The proposal could centralize enforcement of existing laws and create a vehicle for imposing tougher rules.” Sounds alright by me.