Choice of Palin has Sealed McCain's Fate

To turn an old saying around, it's far better (for Obama) to have a foolish opponent than a wise friend. And McCain has totally obliged.

Forget GWB's abysmal ratings. Forget the economy. Forget the Iraq war. Till the end of the Democratic Convention McCain still had a more than even chance of occupying the White House. His biggest card was the split among the Democrats, and Hillary supporters just wanting an excuse to vote for him.

Basic politico-economic theory and conventional wisdom both required him to veer to the center. Any of the speculated VP choices would have been fine - Tom Ridge, Joe Lieberman, even Mitt Romney and just may be Tim Pawlenty, as they all had their respective strengths.

A stance that would dilute the pro-life message, raise the prospect of restoring taxes for the ultra-rich, call for more regulation and expanded healthcare would turn off the hardcore right, but not enough to withdraw or switch support, when they see Obama as the alternative. Yet McCain could this way pick up a lot of the disgruntled Hillariites, and the undecided and independent voters.

But then he went ahead and picked Sarah Palin. What was he thinking? That just because she has the right plumbing (as a Hillary supporter put it to me) she'd get the Hillary women to back the ticket?

In addition to her obvious lack of experience she's so far to the right as to be almost a caricature of the ideology that's distateful to Democrats and most independents. McCain seemed smugly happy about the surprise he had pulled off, and about her almost rapturous reception by the hardcore right. "Trust McCain to shake things up" said a lackey on TV as Sarah's introduction started just ahead of the Republican Convention. But you need to shake things up when your outlook is bleak and the current course seems to be failing, and not when you have so many strong cards in your suit.

There are of course many other deficiencies in his campaign. When the economy is the number one concern you don't see a single economist of repute among his advisers. Ditto on other issues. The negative ads are horribly conceived and destroy his clean guy image without getting an effective message across. But these blunders I think pale in comparison to Palin (pun intended.)

The end result is obvious now, with McCain trailing Obama by 8 points nationally just six days before election day. Hillary supporters and independents have been shocked back into Obama's camp, and talk of voting against Obama out of spite has all but evaporated. I had anticipated this as my comments of September 1st and September 15 (when McCain was still doing well in the polls) on my August 1st post show. To a large extent McCain's choice of Palin is indicative of the quality of his decision-making as President. The maverick has turned ultra conservative, which I see as an act of misplaced expediency and even cowardice. McCain is paying the price and has only himself to thank for it.

I'm guessing Obama is silently but ardently thanking him too.

Does A President Need Principles?

A good thing about the upcoming elections is that either presidential candidate will be a huge improvement over Bush. The race is surprisingly close at this point, given Obama's highly successful foreign tour, favorable press coverage and inspiring speeches as compared to McCain's gaffes and senior moments. Many more voters view Democrats favorably as compared to Republicans. Obama is an inspirational speaker with quick wit and charm. He is also highly intelligent and organized.

Yet according to CNN's "Poll of Polls" today Obama is at 47% to McCain's 44% with 9% undecided. What gives?

One reason McCain is so close may be that he is still widely thought of as decent and principled despite his share of flip-flops. The Washington Post today carried a long article about how emotion and ambition have always guided McCain's behavior. But even such negative coverage may only humanize him and not tarnish his overall standing with voters.

Obama appeals to the idealism of his enthusiastic supporters with his message of change and hope. Yet in his life there seems little or nothing of principle he's done, or made sacrifices, that compromised his own interests.

Then there have been his rapid switches on issues after winning the Democratic nomination. These move him to the center or even into Republican territory, like his wooing of evangelicals and decrying a Supreme Court ruling against the death penalty in non-homicidal cases.

Such tactics while smart help shape perceptions. Half the voters (myself included) think Obama will do or say whatever gets him elected or furthers his personal interests. But even assuming that is true, how much does it matter? It largely depends on what the candidate hopes to achieve by becoming President.

The significance of being the first black / minority President shouldn't be lost on Obama. Here is his chance to go down in history as a great leader with path-breaking accomplishments. If that's his objective then his actions and decisions driven by pure self-interest will largely converge with what is good for the country. He will surround himself with good people, and take decisions on their merits in the national interest to secure his legacy.

Companies seek the smartest and most capable CEOs who are not necessarily nice guys. The system of compensation, rewards (and punishments in case of wrongdoing) tries to align the CEOs' self-interest with that of the companies.

This private company analogy can apply to Obama even if his incentives for being a good President are different. So while Obama has his core following of wide-eyed admirers it will be interesting to see how the preferences of the more skeptical swing voters unfold in the coming months.

McCain's Strategy: Stupid Or Ultra Smart?

At first I thought John McCain has lost it. But now I'm not so sure. I'm referring to his behavior and policy stances after securing the Republican nomination, and particularly after Barack Obama became the official Democratic nominee.

Every veteran of two party politics should know about the "race to the center" strategy. This is also formally taught in introductory game theory courses in the economics department of the University of Chicago, where Obama's advisor Austan Goolsbee is a professor.

The theory here is for mercenary politicians to take more extreme right or left positions during the primaries to win support of their respective bases, and then each moves to the center to try to win most voters in the general election. By "mercenary politicians" is meant those who are simply focused on winning, and untethered to internal commitments or prior promises.

Obama has all this down pat. That's why you saw him gallop towards supporting the death penalty even for some non-homicidal crimes; courting evangelicals; qualifying troop withdrawal commitments in Iraq; lecturing blacks on personal responsibility; and so on. He may ease off the pace of transition a bit because of left-wing reactions, but his base is pretty much in the bag and you know where he's heading. Even Jesse Jackson's much publicised private diatribe against Obama actually helps drive some undecided whites into Obama's fold.

But what about McCain? He seems firmly stuck on the right of even where he has been in the past several years on issues ranging from (a lack of) women's reproductive rights to taxes to healthcare coverage. Moreover, he flubs his speeches and country names, and is the anti-thesis of Obama's eloquence. He's well behind Obama in the opinion polls. So he seems to be following a really dumb and ineffective game plan, right?

That's possible, but there's an alternative explanation. After all McCain has some of Karl Rove's closest associates advising him. Obama is a formidable opponent but one thing that can work for McCain is Hillary's disaffected supporters who can either vote McCain or not vote at all.

Obama can heal the divisions simply by taking on Hillary as his running mate, and though I had my doubts it looks like she's amenable to this. The only thing is, with all the bitterness during the primaries process, he's apt to choose her only if he feels he needs her. But what if he were confident that he could win without her? Then he'll choose someone else, and that's the only way for McCain to beat him.

If that's the calculation then McCain should let Obama get substantially ahead in the polls till Obama chooses his running mate, someone other than Hillary. Only after that should McCain turn to more centrist themes and go full throttle in his campaign. His earlier rightist stance will endear him to the Republican base who contribute to his campaign. This base will also be more understanding of his late shift to the middle if he's lagging in the polls and "has" to adjust positions to catch up with Obama. Also, McCain's tepid campaign style and listless speeches earlier on will lower expectations, which will make it easier for him to beat them in the all-important debates and final run-up to the elections.

So back to the question: Are McCain and his team being absurdly foolish or brilliantly clever? Their subsequent actions, say after the Democratic convention, may supply the answer. At this time it is hard to tell.