Friday, November 21, 2008

The Waxman Democrats


What the coup against Dingell means for business.


John Dingell's fall from power yesterday is an important inflection point in the history of the modern Democratic Party. The House purge marks the final triumph of the Congressional generation that came of political age during the 1970s over the last lion of New Deal liberalism, and it is symbolic of the party's change in culture and policy priorities in the Barack Obama era.

Sitting chairmen are nearly impossible to depose, never mind one with the seniority and record of Mr. Dingell, who has served longer than anyone else in the House. The Democratic caucus nonetheless stripped him of his 28-year position atop the Energy and Commerce Committee, which has great power over the climate change and health-care bills that Mr. Obama hopes to pass next year. Instead, California's Henry Waxman, who was elected by a reported 137 to 122, will do the honors. (We say "reported" because the vote was by secret ballot, which in a rich irony Democrats want to prevent for union organizing votes.)

Speaker Nancy Pelosi claimed to be neutral, though it was clear all along that she was twisting arms on Mr. Waxman's behalf. "I assume that not playing a role is playing a role," as Charlie Rangel, another venerable committee chairman, put it yesterday. Ms. Pelosi loathes Mr. Dingell's independence -- especially on environmental matters.

That fissure neatly separates the Waxman Democrats from the old vanguard that Mr. Dingell represents. He was first elected in 1955 and has always tried to protect his hometown Detroit auto makers from the eco-mandates that ultimately helped to land them in their present predicament. Mr. Dingell's rough-hewn candor about the realities of "doing something" about climate change also helped to make him a green pariah. He knows that carbon regulation and taxes will fall most heavily on domestic manufacturing and Midwest states that rely on coal-fired power. His sympathies lie with the people who work near (or in) factories and drive Fords or Chevys.

Mr. Waxman, speaking for the upscale precincts of Beverly Hills, wants to phase out coal and cars that use gasoline. The coastal elites who now dominate Democratic politics will happily trade the blue collar for the green collar.
In today's Opinion Journal

Barney Frank and the other liberals produced by Vietnam and Watergate, Mr. Waxman belongs to a cohort whose power has been checked -- one way or the other -- by Ronald Reagan, Bill Clinton's New Democrat tendencies, the Republican sweep of 1994 and George W. Bush. Now with a new Democratic President and a crisis to use as a lever for a sweeping expansion of government, they aren't about to let an old warhorse with scruples about the costs of regulation interfere with their moment to govern.

We should add that Mr. Dingell is hardly some business apologist. At Energy and Commerce in the 1980s and early 1990s, Mr. Dingell would burn the paint off the committee room walls with his interrogations of energy, insurance and drug company executives. The irony is that Democrats have found, in Mr. Waxman, an even more extreme antibusiness tribune, who will no doubt use his new powers to go after any concern that turns a profit but refuses to pay his party the obeisance of campaign cash and regulatory submission. In short, the Democrats have ousted the dean of the House for the spleen of the House.

Meanwhile, in another sign of the Waxman ascendancy, President-elect Obama has named Philip Schiliro, a Waxman loyalist and his former chief of staff, as the new White House director of Congressional relations. Robert Sussman, who leads the transition's Environmental Protection Agency "review team," has been an astringent critic of Mr. Dingell on carbon regulation. And Carol Browner, Al Gore's protégé turned Clinton EPA administrator turned director of Mr. Obama's "energy working group," is another old Dingell foe.

It's obvious who now pulls the Democratic levers of power, and anyone in the energy or health-care business had better erect the barricades. In the small favors department, Mr. Waxman will allow Mr. Dingell to hold the title "chairman emeritus."

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