Another Liberal Crackup; The Real Reason Evan Bayh wants out of Washington.

Another Liberal Crackup
The real reason Evan Bayh wants out of Washington.

The political retirement of Evan Bayh, at age 54, is being portrayed by various sages as a result of too much partisanship, or the Senate's dysfunction, or even the systemic breakdown of American governance. Most of this is rationalization. The real story, of which Mr. Bayh's frustration is merely the latest sign, is the failure once again of liberal governance.

For the fourth time since the 1960s, American voters in 2008 gave Democrats overwhelming control of both Congress and the White House. Republicans haven't had such large majorities since the 1920s. Yet once again, Democratic leaders have tried to govern the country from the left, only to find that their policies have hit a wall of practical and popular resistance.

Democrats failed in the latter half of the 1960s, as the twin burdens of the Great Society and Vietnam ended the Kennedy boom and split their party. They failed again after Watergate, as Congress dragged Jimmy Carter to the left and liberals had no answer for stagflation. They failed a third time in the first two Bill Clinton years, as tax increases and HillaryCare led to the Gingrich Congress before Mr. Clinton salvaged his Presidency by tacking to the center.

A fourth crackup is already well underway and is even more remarkable considering how Democrats were set up for success. Inheriting a recession amid GOP failures, Democrats had the chance to restore economic confidence and fix the financial system with modest reforms that would let them take credit for the inevitable recovery. Yet only 13 months later, Democrats are down in the polls, their agenda is stymied by Democratic opposition, and their House and Senate majorities are in peril as moderates like Mr. Bayh flee the scene of this political accident.

Democrats have responded by blaming "obstructionist" Republicans, who lack the votes to block anything by themselves; or a failure to communicate the right message, though President Obama is a master communicator; or even Madison's framework of checks and balances, though this system has worked better than all others for some 225 years.

John Podesta, who ran Mr. Obama's transition and heads the Center for American Progess that has supplied the Administration's ideas, summed up the liberal-media mood last week when he told the Financial Times that American governance now "sucks." If you can't blame your own ideas, blame the system.

The real source of this mess is the agenda that Democrats have tried to ram through the political system. Far from offering new ideas to reform the welfare state or compete better against rising global powers, Democrats have with rare exception tried to impose the same spending, tax and regulatory agenda that failed in the 1960s, 1970s and 1990s. Mr. Obama was a new face promising new hope, but his ideas are as old as the average Congressional Chairman.

To fix the economy, Democrats sent federal spending to peacetime heights in the name of replacing private investment with "public demand." But instead of spurring recovery, this spending spree has retarded it by frightening the public and business about future tax increases and the rising burden of public debt. The new jobs Democrats promised still haven't arrived, and while the recovery should finally produce job growth this year, Americans know they have received little for their $862 billion in "stimulus."

The rest of Mr. Obama's liberal agenda has foundered on its own overreaching implausibility. To fight the speculative threat of global warming, Democrats have tried to impose vast new taxes to raise energy prices. To address rising health-care costs, they proposed huge new health subsidies and political control of medical decisions. Medicare is heading toward bankruptcy, yet Mr. Obama's response is to make the entire health-care system like Medicare. And to fix the financial system, they have declared war on bankers while proposing reforms that would do little to prevent future bank bailouts.

The central contradiction in modern liberal politics is that Otto von Bismarck's entitlement state for cradle to grave financial security is no longer affordable. The model has reached the limit of its ability to tax private income and still allow enough economic growth to finance its transfer payments.

You can see this in bankrupt Greece, where government spends 52% of GDP; or in California and New York, where the government-employee unions have pushed tax rates to punishing levels and the states still can't pay their bills. Americans can see that this is where Mr. Obama's agenda is also taking Washington, and this is why they are rejecting it.
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Can Mr. Obama still make a mid-course correction, a la Bill Clinton after 1994? Of course he can. What we don't know is whether he has the political instincts and nerve to do so. As a creature of Chicago politics and the legal class, he has lived his entire life in precincts dominated by the political left. On the other hand, he says he is not "an ideologue."

Americans have already sent one rebuke to Democrats in the form of Scott Brown's victory in Massachusetts. Now Mr. Bayh, a senior Member of their own party, has sent another by skipping town and putting another Senate seat in play. Our guess is that it will take one more repudiation in November before Democrats relearn that you can't govern America successfully from the political left.