I am always smugly satisfied when Paul Krugman agrees with me. Of course “agrees” is somewhat of a stretch, implying as it does that he has read anything I’ve ever written; rather let us say that our minds have run along parallel tracks, and sometimes mine pulls into the station ahead of his (at least on the written record). Anyway, I’ve said more than once that the (e.g., here) that the Democrats can retrieve their failing fortunes by going after Wall Street, and forcing Republicans to play defense for their corporate masters. Krugman said the same thing in a column otherwise devoted to the critical need for taming the beast that the world of finance has become:
Let me conclude with a political note. The main reason for reform is to serve the nation. If we don’t get major financial reform now, we’re laying the foundations for the next crisis. But there are also political reasons to act.
For there’s a populist rage building in this country, and President Obama’s kid-gloves treatment of the bankers has put Democrats on the wrong side of this rage. If Congressional Democrats don’t take a tough line with the banks in the months ahead, they will pay a big price in November.
The Republicans are the beneficiaries of this rage, even though, if put to the test, their gloves will be far softer than Obama’s. They will benefit unless they are put to the test, which I predict once again the Democrats will fail to do. Were the Democrats to propose effective action, and make that bill the centerpiece of their legislative agenda, they could energize their own dispirited base, while deflating the tea party folks. Chris Dodd could do his party and his nation one more big favor if he used his new independence to push for extremely strong legislation. Let the Republicans filibuster such a bill. If the Democrats can’t put them on the defensive for doing that, then they don’t deserve to govern.
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