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White House debates fight on economy

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Binyamin AppelbaumHelene Cooper Washington
Last Updated : Jan 20 2013 | 11:53 PM IST

As the economy worsens, US President Obama and his senior aides are considering whether to adopt a more combative approach on economic issues, seeking to highlight substantive differences with Republicans in Congress and on the campaign trail rather than continuing to pursue elusive compromises, advisors to the president say.

Obama’s senior adviser, David Plouffe, and his chief of staff, William M Daley, want him to maintain a pragmatic strategy of appealing to independent voters by advocating ideas that can pass Congress, even if they may not have much economic impact. These include free trade agreements and improved patent protections for inventors.

But others, including Gene Sperling, Obama’s chief economic adviser, say public anger over the debt ceiling debate has weakened Republicans and created an opening for bigger ideas like tax incentives for businesses that hire more workers, according to Congressional Democrats who share that view. Democrats are also pushing the White House to help homeowners facing foreclosure.

Even if the ideas cannot pass Congress, they say, the president would gain a campaign issue by pushing for them.

“The president’s team puts a premium on being above the partisan fray, which is usually the right strategy,” said Senator Charles E Schumer of New York, the number three Democrat in the Senate. “But on this issue, when he knows what the right thing to do is, and when a rather small group on one side is blocking any progress, you have to be willing to call that group out if you want to get anything done.”

Dan Pfeiffer, the White House director of communications, said that there was no internal debate. “The president’s first priority is to work with Republicans and Democrats to grow the economy, create jobs and reduce the deficit, but if the Republican House continues its ‘my way or the highway’ approach, he will make sure the public knows who is standing in the way and why.”

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The issue is being framed by the 2012 election. Administration officials, frustrated by the intransigence of House Republicans, have increasingly concluded that the best thing Obama can do for the economy may be winning a second term, with a mandate to advance his ideas on deficit reduction, entitlement changes, housing policy and other issues.

Obama plans to spend time this weekend considering his options, advisers said. The White House expects to unveil new job-creation proposals in early September.

©2011 The New York Times News Service

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First Published: Aug 15 2011 | 12:44 AM IST

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