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Responsiveness and Deliberation in Divided Government: Presidential Leadership in Tax Policy Making
Published online by Cambridge University Press: 27 January 2009
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At the heart of the puzzle of representation is the responsibility to construct policy that both responds to the separatist pull of local constituencies and meets the republican aspiration that government leaders define and promote common interests. The difficulty of balancing responsiveness and deliberation is heightened by divided government, where pursuing a competitive course leads to stalemate, while compromising too readily threatens to undermine party principle. This article argues that politicians have an incentive to accommodate their strategies to divided government, and that this accommodation will take the form of centralizing power in the congressional party leadership, with an increased willingness on the part of the president and the congressional leadership to engage in substantive consultation over the content of the legislative agenda. These accommodations will foster the possibility of meaningful deliberation; whether it will occur on any given issue will depend on the context of information and interpretation. Because most policies are open to multiple interpretations, political leaders have some leeway in framing the issue and thus determining what information and which political resources will shape the strategic context. Beginning with a review of the literature on legislative processes and presidential influence in Congress, and drawing on the formal theory literature on information and uncertainty, I explicate the argument by way of an empirical case study of one of the most historically significant tax policy negotiations in the post-war period.
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References
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25 Uncertainty is at the crux of Riker's concept of ‘heresthetics’. See Riker, William H., The Art of Political Manipulation (New Haven, Conn.: Yale University Press, 1986).Google ScholarKrehbiel, , InformationGoogle Scholar, propounds a theory of legislation centred on uncertainty, envisioning legislators as successively modifying their beliefs and prospective actions at each stage of a signalling game.
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43 In his magisterial study of the Eisenhower, , Kennedy, and Johnson, years, Politics and Policy: The Eisenhower, Kennedy and Johnson Years (Washington, DC: The Brookings Institution, 1968)Google Scholar, James L. Sundquist finds in the last two years of the Eisenhower administration strong evidence for the responsible parties thesis. Following the 1958 elections, liberals formed the Democratic Study Group and the Democratic Advisory Council, and concentrated on formulating a liberal national platform. Although it served an expressive function well, this movement won no major legislative battles and typically worked at cross purposes to the leadership's attempt at policy integration.
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51 In a repeated game, it is rational for each actor to consider the future strategic costs of present actions. Hardin, Russell, Collective Action (Baltimore, Md: Johns Hopkins University Press, 1982), pp. 155–230Google Scholar, shows that a repeated social dilemma is a co-ordination game, in which a co-operative outcome is possible as a Nash equilibrium.
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54 The late March poll for the first time showed less than majority approval for Eisenhower's performance, at 48 per cent the lowest point of his presidency: Gallup, George H., The Gallup Poll: Public Opinion, 1935–1971 (New York: Random House, 1972), Vol. II, p. 1542–6Google Scholar; AIPO, poll no. 597, 25 03 1958.Google Scholar
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56 In the few cases where information asymmetries gave one side or the other a potential advantage, neither side exploited it. For instance, Labor and Commerce Department statistics on aggregate economic activity were conventionally transmitted to the White House the day before they were released to the press, but the president would never have condoned the use of this information as a bargaining chip (Saulnier, VOHC), even if (as is doubtful) the advantage of one day's timing had been large enough to exploit effectively. Similarly, the Democratic leaders had a modest informational advantage over the White House when it came to parliamentary strategy, but since the issue never moved to the floor of the legislature, this potential resource was not utilized.
57 New York Times, 16 03 1958, pp. 1, 45Google Scholar; Wall Street Journal, 14 03 1958, pp. 1, 17Google Scholar; USNWR 21 03 1958, pp. 50, 53–4Google Scholar; 11 April 1958, p. 61; Anderson, Robert B., ‘Financial Policies for Sustainable Growth’, Journal of Finance, 15 (1960), 127–39; at pp. 127–8Google Scholar; Saulnier, , COHC, p. 41Google Scholar; Hauge, , COHC, p. 84Google Scholar; Paarlberg, , COHC, p. 155.Google Scholar
58 The literature on macroeconomic stabilization documents the differences in policy outputs that follow from elites' subscription to different models of economic dynamics: Frankel, Jeffrey A. and Rockett, Katharine A., ‘International Macroeconomic Policy Coordination when Policy-Makers Do Not Agree on the Model’, American Economic Review, 78 (1988), 318–40Google Scholar. It was not only the difference in models, however, but the difference in the degree to which the principals on either side could present and utilize their preferred economic model in policy debate. Johnson and Rayburn were sophisticated about the political aspects of the Democratic plan, but neither had given much attention to its economic underpinnings. Johnson adviser James Rowe had, in fact, urged the Senator to consult economists more frequently, as a means of increasing ‘the seriousness of thought and minimiz[ing] the political atmosphere’. (James Rowe, memoranda for Johnson, Senator Lyndon, 10 02 1958 and 24 March 1958, LBJL-Selected Names File, Box 32).Google Scholar
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60 ‘The recession … has done much to bring out Mr Eisenhower's self-confidence and independence of action … [He is] now showing Congress who's boss’, Time, 28 04 1958, p. 18Google Scholar; cf. USNWR, 25 04 1958, pp. 39–41, 46–9.Google Scholar
61 On economists' views, see New York Times, 22 04 1958, p. 1Google Scholar; 29 April 1958, pp. 1, 18; 30 April 1958, pp. 1, 14; 2 May 1958, pp. 1, 14; 4 May 1958, Sec. 4, p. 3; JEC, Subcommittee on Fiscal Policy, Fiscal Policy Implications of the Current Economic Outlook: Hearings, 85th Congress, 2nd Session (1958)Google Scholar; on liberal challenges to the leadership, cf. Congressional Record, 1958, v. 104Google Scholar, pt. 4, pp. 4274–302; Sundquist, , Politics and Policy, p. 26Google Scholar; Stein, , Fiscal Revolution, p. 334Google Scholar; New York Times, 14 03 1958, pp. 1, 17Google Scholar; 17 March 1958, p. 10; 19 March 1958, p. 21; 24 March 1958, pp. 1, 41; Wall Street Journal, 14 03 1958, p. 2Google Scholar; 19 March 1958, p. 3; 20 March 1958, p. 3; 24 March 1958, p. 3;); on Johnson's views, see Schlesinger, Arthur Jr. to Johnson, 4 and 12 03 1958Google Scholar and Johnson, to Schlesinger, Jr., 6, 18 and 27 03 1958Google Scholar; Johnson, to Galbraith, John K., 18 03 1958Google Scholar in Lyndon Baines Johnson Presidential Library (LBJL).
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64 Huitt, , ‘Democratic Party Leadership’Google Scholar, emphasizes Johnson's belief that ‘good legislation is not the product of oratory and debate but of negotiation and discussion, designed not to make issues but to find common ground … He consistently refused to turn the Democrats in the Senate loose to attack Eisenhower at will, believing that no President can be cut down without hurting the presidency itself – with the American people the losers.’ Rayburn's operating style was much the same: ‘He avoided … issues that divided the party, [and preferred] to wait for Eisenhower proposals and then to seek an opposition posture’ (Sundquist, , Politics and Policy, p. 403)Google Scholar. Eisenhower's drive to avoid conflict and his skill at persuasion and eliciting co-operation are similarly notable (Greenstein, , Hidden Hand PresidencyGoogle Scholar; Ambrose, Stephen E., Eisenhower: Vol. II, The President (New York: Simon and Schuster, 1984)Google Scholar, and Anderson's possession of these same traits helps to explain his close personal affinity with the president (Dale, Edwin L., ‘Tough-minded Texan in the Treasury’, New York Times Magazine, 7 07 1957).Google Scholar
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