5. Barney Frank It’s Not the System, It’s the Voters October 31, 2013 Introduction ur guest today is a distinguished politician whom I’ve known and admired, from near and afar, for Oalmost a half century. His is a remarkable life and career that defies reducing to a few words. Most recently, for more than three decades until his retirement in Janu- ary 2013, he served as a Democratic member of the U.S. Congress from the 4th Massachusetts District. As Chair- man of the House Financial Services Committee, he was at the center of activity in Washington from the start of the Great Recession throughout the mortgage foreclosure bailout crisis and the most extensive reform of the nation’s banking and financial services industry since the Great Depression. At this most trying time, Henry Paulson, Sec- retary of the Treasury in the administration of President George W. Bush, said he especially appreciated Barney Frank’s penchant for brokering good deals. “He is look- ing to get things done and make a difference”, Paulson wrote, “He focuses on areas of agreement and tries to build on those.”24 1980, he quickly became known for his quick wit, his Barney Frank was born and raised in Bayonne, New keen intelligence, his extraordinary work ethic, and his Jersey, the grandson of Polish and Irish immigrants. He passionate eloquence, for which the congressional staff graduated from Bayonne High School before attending and Washington press corps repeatedly recognized and Harvard College, did graduate work in government there, honored him. The breadth of his contributions while and served as chief assistant to Boston Mayor Kevin White in the Congress is, in a word, breath-taking. From the and four terms in the Massachusetts legislature. At the recent reforms of Fannie Mae and Freddie Mac and same time, he earned his degree from the Harvard Law the entire financial industry, it extends over the course School and was admitted to the Massachusetts Bar, while of his congressional career to affordable housing, civil teaching part time at UMass Boston, Boston University, rights, women’s rights, hate crimes, the death penalty, and the Kennedy School of Government at Harvard. decriminalization of marijuana use, promoting the Elected to the U.S. House of Representatives in economy and public health, protecting the environment, supporting the military and their families, regulating ________________________________________________________ Internet gambling, and strengthening US/Israel relations 24Henry M. Paulson, Jr., On the Brink: Inside the Race to Stop the Collapse of – on each of which he has left an enduring mark. the Global Financial System, Hatchette Book Group; New York, 2010; with a Foreword by Cong. Barney Frank that begins, “For many people, what will He once said that, “I worked very hard at legislating, be most striking about this foreword is the fact that I wrote it. “ I enjoy it. It’s the most important thing I can do, because POLITICS THEN AND NOW: IN MAINE AND THE NATION 339 it’s a chance to make the world a fairer place; and I think very necessary to stave off a disaster.” And we did. We, I can show you that you can make it fairer without making the Democrats, gave him more support, particularly in the it less efficient.” He also said, “I’ve always believed I’m House, than the Republicans did! a much better legislator than I am a candidate. I am not In other words, this question about, “Whatever hap- a great candidate.” When asked why he felt this way, he pened to bipartisanship?” Well, I agree that it disappeared; replied, “Well, there are things I’m terrible at. I have not but it was alive and well in September 2008. In fact, dur- handled my personal life well until a few years ago, and ing the Bush II eight-year presidency, he got a lot accom- now I’m doing a really good job and I’m very proud of plished, not all of which I agreed with. I voted against No that.” When asked how he felt about leaving the Congress, Child Left Behind; but it was a significant piece of legisla- he said, “I don’t have to pretend now to be nice to people tion, if you want to talk about the ability of Congress to I don’t like”. function. He got his massive tax cuts through – although Ever candid, witty, tireless, and courageous, it’s always easy to cut taxes. He got his prescription drug occasionally outrageous, and always very human, and bill through; again, I thought it was flawed in some ways, – during his long tenure in the Congress – perhaps its but it went through. finest orator and one of its most effective members, it is Then we had the economic crisis of 2007–08, and there a personal pleasure and privilege for me to introduce to was great collaboration between the Democratic Congress you Barney Frank of Newton MA and Ogunquit ME. (RB) and the Republican President, culminating in passage of his TARP legislation – money lent to the banks – which I ARNEY FRANK: Thank you very much, Dick, am convinced will go down in history as the most wildly it’s nice to see you again; it’s been awhile. I was unpopular and highly successful program the federal gov- Bintrigued by the topic, Politics Then and Now; and ernment ever had. We did that with George W. Bush. In I see that the “Then” is very heavily represented in the January 2008, President Bush again said to the Democratic audience today. This is actually good, because there are leadership, “The economy is slipping, it needs a stimulus.” ancient references I make from time to time that I have Nancy Pelosi said, “OK. I understand you won’t be for the to explain to people, including my husband. So, it’s nice kind of spending that I would be; but I will support you in not to have to worry about that. Then there are newer ref- doing this “stimulative” tax cut if it is weighted in favor of erences, which I don’t know myself; so I don’t have to lower income people, if it increases those things that help worry about those, either. people at the lowest levels.” She did that. The premise of this series is that there has been a de- I don’t know if there are any students here who want to terioration in the nation’s politics, and I subscribe to that do a paper on this; but go back and see, when did you first with a couple of qualifications. I want to say at the outset start reading about the system “breaking down”? I don’t that, yes, politics has deteriorated. I was talking recently believe you were reading that through the first years of the to the man who succeeded me in the district I represented 21st century. Then, when President Obama won in No- in the U.S. House of Representatives, Joe Kennedy III. I vember 2008 and we had a Democratic House and Senate, commiserated with him and said, “You have entered the we had one of the most productive legislative years since House at its worst point since the vicious physical and 1965, the first full year of Lyndon Johnson, before the other conflicts just before the Civil War.” I agree that Vietnam War bogged him down. things are terrible now; but I’m sure they will get better. You got the Affordable Health Care Act, a massive achievement that some people may dislike. We’re talk- It Begins and Ends with the Voters ing now, though, about whether the system can function. Where I disagree with some people is the often explicit The financial reform bill was passed, of which I am very assumption that there are deep, systemic failures that have proud. We repealed “Don’t Ask, Don’t Tell.” We passed the produced this state of affairs. In fact, this breakdown, Lilly Ledbetter Act, which significantly increased the abil- this deterioration, this inability to get things done is only ity of people to sue for job discrimination. The right-wing about two-and-a-half years old! Supreme Court had ruled five-to-four that you could not Dick quoted from the memoir of Hank Paulson, George sue for job discrimination if the statute of limitations had W. Bush’s Secretary of the Treasury. In 2008, six weeks lapsed before you even knew you were being discriminated before the presidential election, the most fraught time in against. That is, you found out years later that you were the American political calendar, George Bush sent his top being screwed, and it was too late; but we said, No, the economic people to see House Speaker Nancy Pelosi and statute runs from the day you could reasonably have found Senate Majority Leader Harry Reid, both Democrats. The that out. We did great increases in the children’s health bill. emissaries from the President said, “We have a terrible Again, if you read the news at the end of 2009, you economic crisis coming. We need you to join us in doing wouldn’t see a lot then about the system “breaking down.” some things that are going to be very unpopular, but are It’s as simple as this: the system broke down as a result 40 POLITICS THEN AND NOW: IN MAINE AND THE NATION of the right-wing Republicans taking over the House of need bipartisanship.” One of my semantic problems is Representatives in 2010; and that’s the end of it.