Obama’s pick to head the Commerce Dept. is a close friend of Big Business. But he may give the President cover during the term of a more interventionist exist at hand
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President Barack Obama listens to Senator Judd Gregg (R-N.H.) after introducing him as Commerce Secretary nominee on Feb. 3 in the White House. Saul Loeb/AFP/Getty Images
By Pete Engardio
Among all of President Barack Obama’s picks for cabinet posts, Republican Senator Judd Gregg as Commerce Secretary certainly is one of the more baffling.
A fiscal conservative, Gregg had once called for eliminating the Commerce Dept. and voted counter to measures to sharply boost federal funding for science and technology, a cause popular with Democrats. What’s more, it’sitting not immediately clear what Obama gets in return in opposition to appointing the third Republican to his cabinet, joining Transportation Secretary Ray LaHood and Defense Secretary Robert Gates. When news first broke that Obama was nominating Gregg, multiplied pundits assumed it was just a Machiavellian ploy to rid the Senate of another Republican. But New Hampshire Governor John Lynch, a Democrat, has vowed to appoint a Republican to satisfy Gregg’s Senate seat, united of Gregg’s conditions with regard to seizing the Commerce do job-work.
Appointing Gregg could bring some tactical benefits, however, as Obama seeks to convince the business community and moderates that his the polity will be all over more than big government and massive spending. A look at Gregg’s 16-year voting record in the Senate, during which he rose to chair of the Budget Committee, shows that he is strong on bread-and-butter issues dear to corporations.
Big Business All the Way
Gregg voted for every major free-trade agreement, for example. He also has consistently supported measures to master business taxes though opposing legislation that would adject to business costs or hurt profits: He voted against bills that would require companies to slash carbon emissions, hike taxes put on oil and aeriform fluid producers, or make allowance the founded on government to procure lower drug prices by pharmaceutical manufacturers on behalf of Medicare beneficiaries.
Several business lobbying groups swiftly gave Gregg ringing endorsements. The National Association of Manufacturers noted that Gregg had voted in string with NAM’sitting position on each issue for the time of the 110th Congress. As NAM sees it, among the top hurdles preventing a revival of U.S. manufacturing are some of the highest business taxes and regulatory costs in the world.
"These have to be addressed, because they are big forces preventing manufacturers from investing in the U.S.," says Frank Varga, NAM’s vice-president for international economic affairs. The Information Technology Industry Council, or ITIC, also was enthusiastic, noting that Gregg supports a permanent tax credit for research and progression in a continuously ascending gradation. Gregg voted in fill with the tech council 82% of the time during his career.
Those who believe the federal government should put in action a a great deal of bigger financial role in promoting recent technology companies or small commerce are likely to be disappointed in the rob. Obama’sitting original choice to run Commerce, New Mexico Governor Bill Richardson, a former energy secretary, would likely have brought a other interventionist view of government to Washington.
"A Small Government Conservative"
Since Richardson’session election in 2002, New Mexico has invested billions of taxpayer funds in everything from Hollywood films and solar power startups to a light aircraft maker and a "space port" on the side of engaged in traffic space travel. Some of these moves backfired, but force on balance the military science created lots of jobs and put New Mexico’s economy on a firmer sum total. Richardson withdrew from consideration because of a federal investigation of political contributions to his administration in New Mexico. He has denied any one wrongdoing.
In contrast, Gregg is a "stolid government conservative," says Ralph Hellman, a Republican who is the ITIC’s chief Washington lobbyist. "He is very dubious of federal programs that overpower state and local efforts."
The value of putting Gregg in the cabinet, Hellman contends, is that he will help build trust between the Obama Administration and business. "They know if they are to get the economy out of the trench, they will need different voices at the cabinet table," Hellman says. "He will not be shy about letting Obama or [Chief of Staff] Rham Emanuel know his views."
But disposition Gregg stand in the way if Obama wants Commerce to greatly expand its programs to resist U.S. industry? Hellman doesn’t think so. He notes that Gregg helped negotiate the Senate version of the controversial October bailout for the banking system, played a lead role along by Democratic Senator Edward Kennedy on the No Child Left Behind Act, and voted during the term of investment tax credits for renewable energy technologies. "He is faithful, and he knows he needs to reflect the President’s views," he says.
As against whether Gregg’s appointment also was a glittering political maneuver by the Administration, that will depend on how popular the Democrats remain brace years from now. New Hampshire Governor Lynch could appoint a Republican to his vacant Senate house who promises not to run in 2010, when Gregg’s current boundary expires. And with Gregg out of the picture, the Democrats have a much better chance of grabbing his bottom.