Obama: On to the Economic Details

The Democratic Presidential nominee's acceptance speech marks the beginning of a drive to win voters over with more specific ideas for how to help the economy

By Jane Sasseen

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The nomination of Illinois Senator Barack Obama for President at the Democratic National Convention in Denver on Aug. 28 had the kind of over-the-top ending you'd expect from a political party sensing a chance to capture the White House with a charismatic, history-making candidate. Following performances by Stevie Wonder and Will.i.am before an ecstatic crowd of 75,000 at Denver's Invesco Field, Obama accepted his party's nomination in a passionate speech.

Perhaps more important, with a heavy focus on the economy, Obama began the hard work of convincing American voters that he can deliver solutions to the economic woes (BusinessWeek, 8/7/08) they now rank as their No. 1 concern.

"Unlike John McCain, I will stop giving tax breaks to corporations that ship our jobs overseas, and I will start giving them to companies that create good jobs right here in America," Obama said. "I will eliminate capital-gains taxes for the small businesses and the startups that will create the high-wage, high-tech jobs of tomorrow.…And for the sake of our economy, our security, and the future of our planet, I will set a clear goal as President: In 10 years, we will finally end our dependence on oil from the Middle East."

With the convention behind him, Obama has to confront some unpleasant realities. By many measures, he should be capitalizing on the economy's distress to build a sweet electoral lead. He hasn't. At the moment voters rank Obama and Republican rival McCain equally on their ability to address the economy's troubles. His often lofty rhetoric and focus on criticizing McCain and the Bush legacy have yet to convince many that he can turn the economy around or improve their lives.

Middle-Class Mojo

That's why many of the convention speakers, from Obama himself, wife Michelle, and on down the list, spent big chunks of their time before the prime-time cameras emphasizing Obama's deep middle-class roots. Even as the McCain campaign tries to tag him as an out-of-touch elitist, Obama is ramping up his efforts to connect with voters, sharpen the contrast between his vision for the economy and that of McCain, and convince them he is the best candidate to help restore the economy (BusinessWeek.com, 6/12/08) and rebuild the American dream. His clear message is that he understands their woes because he has struggled with the same problems they have, such as paying off college loans and coming up with the money to pay bills.

That's also why Obama supplemented the high-flying talk of change, which many Americans have heard, with greater details about the middle-class tax cuts, investments in alternative energy, expanded health-care coverage, and other programs he proposes to help the American economy and its struggling families. Despite his support for a long list of such programs, many voters still don't know what Obama would do.

"So let me spell out exactly what that change will mean," Obama said. "I will cut taxes—cut taxes—for 95% of all working families, because in an economy like this, the last thing we should do is raise taxes on the middle class."

Obama still appears to be garnering a lower share of white working- and lower-middle-class voters than he may need to win. That problem remains particularly acute in the smaller towns and older manufacturing areas that have been hardest hit by the economic downturn.

Pollster Stanley Greenberg, a Democratic consultant who played a key role in designing the "It's the Economy, Stupid" strategy that helped get Bill Clinton elected President, says many of these voters are frustrated and angry. They want a new direction, but they don't know enough about Obama or if he is one of the "elites" they believe have sold them out. The real problem is among older voters, who remain most resistant to Obama's appeals.