Obama Can Salvage the Economy -- and His Presidency -- By Pushing for Simpson-Bowles

New York Times columnist Thomas Friedman posted an excellent analysis yesterday, arguing that the only way Barack Obama can salvage the economy -- and his presidency -- is by making the Simpson-Bowles deficit reduction recommendations his own and fighting to implement them between now and election day.  Friedman isn't the first or the only commentator to suggest this, but his arguments may be the most compelling anyone has made so far.  And, for good measure, he includes criticism of Obama from none other than Warren Buffett, who is trying to tell the president that he's running out of options fast.  Excerpts of the column follow.

President Obama has a clear choice on how to approach the 2012 election: He can spend all his energy defining Mitt Romney, Newt Gingrich or whoever ends up as the Republican nominee in as ugly a way as possible, or he can spend all his energy defining the future in as credible a way as possible. If he spends his energy defining his Republican opponent, there is a chance the president will win with 50.00001 percent of the vote and no mandate to do what needs doing. If he spends his time defining the future in a credible way and offering a hard, tough, realistic pathway to get there, he will not only win, but he will have a mandate to take the country where we need to go.

I voted for Barack Obama, and I don’t want my money back. He’s never gotten the credit he deserves for bringing the economy he inherited back from the brink of a depression. He’s fought the war on terrorism in a smart and effective way. He’s making health care possible for millions of Americans with pre-existing conditions, and he saved the auto industry. This is big stuff. But, as important as all of these achievements are, they pale in comparison to the defining challenge of Obama’s presidency: Can he put the country on a sustainable economic recovery path at a time when, if we fail, it could be the end of the American dream?

I believe the best way for Obama to do that is by declaring today that he made a mistake in spurning his own deficit reduction commission, chaired by Erskine Bowles and Alan Simpson, and is now adopting Simpson-Bowles — which already has Republican and Democratic support — as his long-term fiscal plan to be phased in after a near-term stimulus. If he did that, he would win politically and create a national consensus that would trump his opponents, right and left.

“I think what happened with Simpson-Bowles was an absolute tragedy,” Warren Buffett said on CNBC last week. “They work like a devil for 10 months. ... They compromise. They bring in people as far apart as [Democratic Senator Dick] Durbin and [Republican Senator Tom] Coburn to get them to sign on and then they’re totally ignored. I think that’s a travesty.”

I think America’s broad center understands very clearly that the country is in trouble and that the Republican Party has gone nuts. But when they look at Obama on the deficit, they feel something is missing. People know leadership when they see it — when they see someone taking a political risk, not just talking about doing so, not just saying, “I’ll jump if the other guy jumps.” In times of crisis, leaders jump first, lay out what truly needs to be done to fix the problem, not just to win re-election, and by doing so earn the right to demand that others do the same.

What would it look like if the president was offering such leadership? First, he’d be proposing a deficit-cutting plan that matches the scale of our problem — one with substantial tax reform and revenue increases, a gasoline tax, deep defense cuts and cutbacks to both Social Security and Medicare. That is the Simpson-Bowles plan, and it should be Obama’s new starting point for negotiations. The deficit plan Obama put out last September is nowhere near as serious.

Second, he’d offer a plan in which the wealthy have to pay their fair share and more, because they’ve had a great two decades. But everyone, including the middle class, has to contribute something. This has to be a national effort. Third, he would offer a plan that is aspirational. It would not just be a roadmap to balancing the budget but to making America great again through reignited economic growth.

My gut says that if the president lays out such a plan — one that begins with him taking all the political risks on himself and then demanding the G.O.P. and his own party follow — he will be both defining himself and the future in a way that would earn him so much centrist support and respect that it would leave every possible Republican opponent in the dust, no matter how obstructionist they are or want to be.

Go big, Mr. President. You will win, and so will America.