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With a deal struck on how to address the financial crisis, Democratic and GOP leaders face a two-tiered challenge: selling the compromise to rank-and-file members and, more importantly, a skeptical public. For most of the past week, Treasury Secretary Henry Paulson’s plan to fix the nation’s financial crisis had been referred to as a “bailout” for Wall Street. That label was a major reason why constituents flooded Capitol Hill offices with phone calls and e-mails, overwhelmingly urging lawmakers to reject it. Facets of the Paulson proposal are still intact, evidenced by his endorsement of the revised plan. Now, members have to use new words and phrases to describe the compromise package to an American public amid record-low congressional approval ratings. That public relations strategy started hours before the final deal was in place when House Speaker Nancy Pelosi (D-Calif.) addressed the media. In her short remarks, Pelosi mentioned the word “taxpayer” at least 13 times, saying the package must “protect the taxpayer” and “should not cost the taxpayer anything.” She pointed out that the final deal would have stronger oversight and “insulate Main Street from Wall Street.” House Majority Leader Steny Hoyer (D-Md.) echoed Pelosi, stressing the need to protect taxpayers while helping struggling homeowners. At around 2:20 a.m. on Sunday, House Minority Whip Roy Blunt’s (R-Mo.) office put out a side-by-side comparison of the initial $700-billion plan crafted by Paulson, provisions Democrats wanted, and the deal struck by congressional negotiators and Paulson on Saturday night/early Sunday morning. That document touted that provisions that liberal groups wanted had been scrapped, including increased power for shareholders on executive compensation issues. Whether that is enough to convince a majority of House Republicans to support the package remains to be seen. Democrats also noted that they had secured key provisions, including stringent oversight of the implementation of the financial rescue plan and a crackdown on so-called “golden parachutes” for executives heading troubled financial institutions. Sen. Judd Gregg (R-N.H.), a key player in the bipartisan talks, issued a statement early Sunday morning praising the compromise. It didn’t mention Wall Street once and emphasized it would help ordinary Americans. “This is about people’s jobs, it’s about people’s savings, it’s about people’s ability to participate in commerce, to send their kids to school, and to be able to borrow money to run their small businesses,” Gregg said. Leadership officials on both sides of the aisle need to work together to convince the public that the new compromise is a good one, but partisan politics threatens to derail it. In her comments Saturday evening before the deal was unveiled, Pelosi lambasted Republicans, claiming the initial Paulson plan was an “anything goes, no regulation,” “trickle-down economics” approach and referred to it as “a bailout.” She faulted President Bush’s “faulty policies” and called House Republicans “unpatriotic for them not to show up…in some ways, to boycott the meetings earlier in the week…” House Republicans strongly dispute Pelosi’s characterization, saying Democrats announced a tentative deal on a rescue plan earlier this week without their consent. In announcing the deal early Sunday morning, Pelosi praised Paulson and Republicans and Democrats on both sides of the Capitol. The new deal will stabilize the markets and “protect our taxpayers,” Pelosi said. |
