Did Obama force Democrats onto the third rail of American politics?

Or perhaps his budget is creating a foundation for a much stronger Democratic Party

Taegan Goddard

When President Obama introduced his long-awaited budget last week, most of the focus was on his proposal to reduce payments for future Social Security beneficiaries by using a "chained CPI" calculation. The adoption of the calculation would slow the rate of inflation over time and reduce cost-of-living increases for future beneficiaries.

Now the politics are starting to sink in, and it's scaring Democrats.

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The New York Times says "opponents on his party's left will make that an issue for Democrats in the midterm elections next year — and perhaps in the 2016 presidential contest."

Responding to the outcry, Democratic strategist Robert Shrum says, "You would think President Obama was proposing to repeal the New Deal."

But perhaps something much bigger and more important is going on here.

Ron Brownstein points out that the complaining among Democrats "suggests that large portions of the Democratic base still don't understand the political and economic dynamics of the party's changing electoral coalition."

He writes:

Obama has already taken a rare step to respond to the budget's generational imbalance with his health care plan, which slows the growth in Medicare spending to fund expanded coverage for the working-age uninsured. Now, the president's nascent cut-and-invest budget approach threads between liberals who would spare all entitlements and conservatives who would retrench investments and entitlements alike.

Instead of hurting Democrats, Obama might actually be creating a foundation to allow the party to hold onto power for decades into the future.

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Taegan D. Goddard is the founder of Political Wire, one of the earliest and most influential political websites. He also runs Wonk Wire and the Political Dictionary. Goddard spent more than a decade as managing director and COO of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. senator and governor. Goddard is also co-author of You Won — Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country, including The Washington Post, USA TodayBoston Globe, San Francisco ChronicleChicago Tribune, Philadelphia Inquirer, and Christian Science Monitor. Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.