During the presidential campaign, any number of reporters and pundits compared President Obama to JFK. Those analogies gave way to FDR and Lincoln, however, once the economic crisis hit. Yesterday, however, President Obama went right back to the Kennedy playbook.
In 1962, after months of agonizing negotiations with US Steel and the United Steelworkers, the Kennedy Administration happily announced that the industry would award wage increases equal only to the rise of productivity. That meant, Kennedy thought, that he had slowed or even stopped the rise of inflation. Management would surely not increase prices beyond those wages, given how hard Kennedy had worked. Surely they would keep their word? Surely they were not that greedy?
They were in fact that greedy. They jacked up those prices. JFK blasted them for their irresponsibility. In a most pointed remark, he noted that "some time ago" he had asked people what they could do for their country and now he had the steel industry's answer. He also leaked his "private" remark that his father had warned him all businessmen were sons of bitches, but he hadn't believed it until now. The Administration hammered the industry, orchestrating a shock and awe campaign against the increase and Attorney General Robert Kennedy, muttered darkly of FBI investigations, collusion, and anti-trust action. The Kennedys were determined to roll back the price increases and, to borrow from Warren Zevon, they rolled out lawyers, guns, and money. The Kennedys won.
Cut to yesterday when the word went out that Wall Street firms had awarded nearly $20 billion in bonuses to their executives with one hand while rummaging around in taxpayer pockets with the other. In words that directly echoed John Kennedy, Obama fumed, "That is the height of irresponsibility. It is shameful. And part of what we're going to need is for folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility." The Administration is now discussing the enjoyably named "claw back provisions" for the next bailout, determined to roll back those bonuses. Sadly, however, the president is sending his new Treasury Secretary to talk to them.
Think about this, Mr. President. John Kennedy sent not his eminent Wall Street Secretary of the Treasury, Douglas Dillon, to express displeasure. He sent an altogether unpleasant man, the Black Prince, the Attorney General of the United States. Sir, it's for moments like this that you hired the Rahmbo. Let Rahm be Rahm.