POLITICAL CAPITAL AS AN INFORMAL POWER OF THE PRESIDENT: ITS EFFECT ON PRESIDENTIAL SUCCESS ON GENERAL LEGISLATION AND THE OBAMA HEALTHCARE DEBATE Maggie Davis POLS 4530 Dr. Audrey Haynes December 3, 2013 Davis (2) INTRODUCTION Two particular situations characterize the executive and legislative branches of government with roots stemming from a similar time period. The executive branch seems to be growing at an impressive rate in its expansion of defined constitutional powers while Congress becomes increasingly polarized on nearly every issue; these dynamics create a tense political relationship between the Executive and legislature as views diverge and the government as an arena becomes more competitive. The goal of my work is to explore and measure the idea of presidential political capital as a variable influencing Congressional decision-making, particularly in the House of Representatives. Members of the House are constantly concerned with reelection by constituents and they must bargain to get legislation passed that would please this vital audience. For the same motive of the perception of success, the president has a clear incentive to be active in the legislative process to get items through Congress that uphold the perception that s/he is successful and can overcome polarization that now regularly characterizes the House; this often means engaging in horse-trading that requires the use of political capital. The phrase “political capital” is vague and open to competing interpretations, but it defines the concept that a political actor can use clout to influence other actors in order to achieve a particular goal. I hypothesize that there is indeed a correlation between the two variables – the amount of political capital the president holds determines the outcome of circumstantial pieces of legislation. In an attempt to model this concept, I narrow the ambiguous set of actors and situations that could be involved in the interactions between the president and the House. I study both President George W. Bush and President Barack Obama by the policies they were able to effectively push at periods of unique legislative activity in addition to performing analysis of literature on the relative political environments. This determines the Davis (3) influence of political capital on general legislation as well as on the recent debate over healthcare. I measure political capital in terms of public approval of the president and success through roll call votes in favor of the president’s standing on key issues; I will attempt to examine the role of political capital generally through an investigation of the George W. Bush administration, which displayed a unique range of political popularity, compared to the role of capital in the present-day administration. THE VAGUENESS OF POLITICAL CAPITAL: WHY APPROVAL RATING MATTERS Richard Neustadt was a prominent political scientist who examined the influence of presidential power throughout history, and his importance in developing the concept of political capital cannot be understated. Neustadt argues that presidential power is characterized by the power of “personal persuasion” in terms of presidential reputation and prestige, and involves impressions within Washington and “a president’s ability to ‘appeal to the people.’” (59-60) Political capital is the translation of this personal power and is critical on key issues for the president given that these hard-pushed issues will inevitability determine the reputation the president so carefully tries to mold. The president seeks to use political capital to pass legislation otherwise subject to harsh partisanship. There is a strong scholarly consensus on the power of public approval rating of the president as a measure of the elusive concept of political capital. Although Neustadt consistently speaks to the dynamic factors of presidential prestige, he agrees that “his standing with the public outside Washington… is a source of influence for him, another factor on [Congress’s] willingness to give him what he wants.” (86) If the president has a higher approval within the public, s/he is better able to influence Congressional leaders who are concerned about constituent Davis (4) reelection as well as presidential favors – in this sense, political capital acts as a vital informal power of the president. William Riker, a prominent game theorist, concedes in The Art of Political Manipulation that “winners… win because they have set up the situation in such a way that other people will want to join them,” which suggests that the framing of issues to other players impacts their base of support. (ix) There are, of course, many intervening factors that determine the outcome of roll call votes on every piece of legislation. Conditions such as electoral outcomes, White House staff, Congressional ideology, and interest group support play pivotal roles in the complicated political game. But “without public approval,… congressional support is only implied by seats.” (Light 31) Another ingredient in the political arena is the media; habituated in the information world we live in today, public approval rating often reflects the media portrayal of the president. As a variable, it incorporates many predetermined components and has important implications for the presidential-congressional relationship and is widely accepted because “poll support is notoriously difficult for presidents to manipulate.” (Schier 17) Public approval, and therefore political capital, allows the president to actively manage all of these colliding factors and garner support despite the odds. Many previous works on the role of political capital discuss the importance of approval rating along with the consideration of differing elements. Patrick J. Fett, in The Journal of Politics, critiques previous studies on their inability to weigh the president’s push on each issue. In order to measure the occurrence of presidential positions, Fett uses presidential mentions of the issue. Instead of deploying a correlation in his research, Fett chooses a logistic regression model that more heavily relies on probabilities of events occurring, looking exclusively at the first year of Carter and Reagan’s presidencies. (Fett) This influenced my decision to measure Davis (5) political capital at unique periods of time due to the fact that presidencies differ and approval rating may have altered effects in some administrations, and it is important to examine the administrations that encompass many of the intervening factors. In “The President’s Role in the Partisan Congressional Arena,” Matthew Lebo and Andrew O’Geen dissect political capital in terms of the approval of the president’s base and electoral consequences for members of Congress when voting with the president in addition to public approval rating. By examining consequences, Lebo and O’Geen consider the motive for each party in voting with the president. (Lebo and O’Geen) I choose not to include the president’s base of support as a variable because this base will most likely support him on any issue, and this is not a good measure of the work s/he does to convince skeptical representatives. This work is helpful in proving that as political actors are generally considered rational, if approval of the president is favorable, motive shifts to supporting the president on legislation to create positive outcomes for members of Congress. In looking at the Bush years, approval rating becomes a key factor in his legislative success, and this, in part, sparked my interest in collecting more extensive data on the Bush administration. A rapid increase in approval rating due to the national unity surrounding the events of 9/11 “produce[d] a surge of popular approval of [the] president, temporarily expanding political capital,” and the subsequent decrease provided a loss in political capital that made it harder for him to get things on the floor, specifically after a period of such perceived success. (Schier 13) As war fighting began in 2003 with the intervention in Iraq and public opinion decreased after the “rally around the flag” effect from 9/11, Bush lost ability to continue bargaining at the same rate, which is displayed in roll call votes for legislation the president pushed. This will all be reflected in the approval rating data, as well as in a discussion of the Bush years in the results section. Davis (6) POLITICAL CAPITAL AND PARTIES Although Bush experienced a time of high approval rating (his highest rate reaching a record-breaking 89%), not all presidents enjoy this kind of public support. In fact, there is unanimous statistical agreement that exposes the fact that the majority of presidents experience a steady decrease in approval rating. (Newman 784) To further complicate the president’s balancing act, Congress has become increasingly polarized by party lines, becoming “ideologically homogeneous,” with parties “separated from each other along a single left-right dimension.” This intense shift to a solely polarized House occurred in the 1960s and continued into the 1970s with the development and sustainment of the civil rights movement. (Haidt) Division over one contentious issue has led divisions over a majority of issues, which has important implications for the president and his or her daily strategy, as well as for the broader goal of leaving a legacy. The reemergence of the healthcare debate by Congressional leaders in the 2013 shutdown displays the importance of healthcare to each of the parties. Although control of Congress shifted to Republicans in 2010 and the environment of Congress is now different than it was in 2009, Obama’s ability to pass legislation evoking such partisan attitudes remains important to the discussion of parties. Tom Daschle, former Senate Majority Leader and Senator during the Clinton healthcare years, stated: “by the time I left Congress in 2005, I had come to believe that no other issue was as complex, as personal, and as fiercely contested by special interests as health care.” (45) The complexity of the issue in addition to the personal connection many feel toward healthcare as a life-and-death matter means that the goal of reform is something the president must handle with extreme care and transparency, or face gridlock. Daschle also states that the fundamental question of the role of government in personal life is the “great divide in Davis (7) our society,” a factor particularly contentious in health care because it “has become a symbol of deep divide in Americans’ feelings about the role government should play in solving our social problems.” (Daschle & Nather 10) With the beginning of the Obama administration, both Congressional Democrats and Democrats in the electorate were hopeful about the role of government in healthcare, while Republicans were discontent with almost any outcome regarding government intervention on the issue. It is important to examine the executive process because the president’s style often affects reactions by Congress as a whole, specifically the reactions of members of the opposing party. In much modern research on party action in Congress, “the role of the president is usually left out or marginalized.” (Lebo and O’Geen 718) But the role of the president should not be understated; often when the president takes a position and exerts political capital, the reaction of the competing party is to diverge away from the position of the president. (Schier 79) Public approval acts as a tool that assists the president in overcoming partisanship to improve the agenda. The theory of political capital relies on the concept that it cannot be replenished; the president cannot always expect to have public support to back his or her positions. For this reason, it becomes extremely relevant to the discussion of the interaction of the two parties. THE CASE OF OBAMA: DID POLITICAL CAPITAL PLAY A ROLE IN HEALTHCARE REFORM? There has been little research published on the early healthcare debate of 2009 and the effect of presidential influence on its outcome. I was interested in the question of political capital and healthcare reform for two specific reasons. It was not only the “signature political battle during the first year of the… administration,” a battle characterized by intense partisan debate, but it is also likely to be the reform that will define the Obama administration for the Davis (8) future. (Kiousis et al 652) Although much goes into agenda-setting, including, but certainly not limited to, predetermined legislator ideology, special interest groups, and the media, Obama would theoretically want to exercise leadership power on the issue that will make his presidency seem successful as a whole. A significant issue yet to be discussed in this area of study is whether Obama used political capital to end the government shutdown caused by Republican efforts to defund the ACA. Obama did win and ended the shutdown with only minor concessions to Republicans, but it is too early to tell what kind of action was critical to that outcome. At the time of the negotiations, Obama’s approval rating stayed constant at around 42-44%; this suggests that since there was no major dip in approval rating during negotiations, Obama kept stable capital during mediation with Republican leaders. (“Job Approval: Barack Obama”) In Journalism and Mass Communication Quarterly, Kiousis, Park, Kim, and Go look at media coverage and the role of communication messages in the success of healthcare legislation. In their work, they find that the salience of issues in information subsidies directly translates into the salience of these issues in Congress. As healthcare received more media attention, it became an issue Congress was forced to handle. (Kiousis et al) For measurements, the work includes speeches, weekly addresses, press briefings, statements and releases, and blog posts, which are all factors that directly relate to capital in that they represent the amount of time and effort Obama put into the issue. They are measures that are critical to how Obama would get things on the floor, but not necessarily measures of how well Obama can sustain what he pushes, which approval rating may be better able to encompass. Rather than action through informal powers, Madhu Chugh argues that there were many “presidential directives,” including executive orders and proclamations, regulatory actions through agencies, and sub-regulatory guidance with which Davis (9) Obama could have acted. But all of these options rely on the president acting independently of Congress, which was neither a reality of an incoming president in 2009 nor one of the recent government shutdown. In addition, many of the goals outlined by Obama would require “congressional action [on] tax proposals and selling insurance across state lines,” and for this reason it is important to think about what influence Obama maintains outside of the realm of legal presidential powers. (30) In fact, historical analysis of Clinton’s previous attempt at healthcare brings light to the importance of Obama exerting capital in his pursuit of reform. Through “political learning,” the Obama administration avoided the mistakes of the Clinton administration through a process that heavily involved members of Congress from the start, a process that “[placed] into context the people and organizations whose support [was] critical for successful implementation.” (Donnelly and Rochefort 189) Clinton “overlooked a strategy for selling the product” and ultimately soured the initially positive public approval through a “protracted and secretive process of policy development.” (191) Without transparency to both Congress and the public, Clinton failed to make key compromises and close important deals with Republicans and moderate Democrats who would be critical to the consideration of healthcare on the House floor. (Starr) According to former Senator Daschle, who happened to be later nominated by the Obama administration for the Health and Human Services secretary, “the [Clinton] White House should have engaged congressional leaders in a more meaningful way at the very beginning.” (112) Strategically keeping this historical context in mind, the Obama administration shifted its strategy to involve the use of political bargaining and persuasion in many ways. Shortly after taking office, Obama held a health care summit in March of 2009 with invites going out to industry professionals as well as Republican House leaders, allowing Obama to build a base of Davis (10) support that would help in efforts to reach across the aisle in future negotiations. Following the summit, Obama invited House and Senate leaders to the White House to discuss reform on multiple occasions and even attended the House Republican health care retreat. (Donnelly and Rochefort) These early moves during a time of high approval rating set a unique strategy for success in which “the president would push Congress to start on health care right away and pass it quickly—not let a bill hang out there in public spotlight, losing… public support.” (Daschle & Nather 129) RESEARCH METHODS There are two variables for which I find measurements. The dependent variable, presidential political capital, is measured by public approval rating of the president. The independent variable, presidential success, is measured by the number of roll call votes in the House in support of the president’s position on a piece of legislation. In order to find the approval rating, I use data from UC Santa Barbara’s American Presidency Project which measures approval rating based on the percentage of Americans that say “approve” to the following question: “Do you approve or disapprove of the way [George W. Bush or Barack Obama] is handling his job as President?” (2012) Findings from UC Santa Barbara originate from Gallup’s poll which contains minimal bias due to the objective approach of limiting out subjective justifications for approval. Data for the independent variable of presidential success come from Thomas.gov’s collection of Congressional roll call votes. This information reports the real values of House decisions - it contains raw data on “yeas” and “nays” on legislation. I limit the scope of my study to the House because the Senate was designed to be more independent from the influence of other branches of government, as well as in an attempt to avoid measuring error. The data on each area are found in Figures 1, 3, 5, and 7. Davis (11) With this data, I focus on key issues that President Bush and Obama pushed during their presidencies. I chose President Bush as a comparison to the situation regarding Obama and healthcare due to his unique ability to use political bargaining tools. Bush is the president with the largest range of political capital during his presidency, with an extremely low approval rating at 25% and the highest ever recorded at 89%. I measure approval ratings on the day of House votes on issues that defined the Bush presidency, which include the Iraq War, tax cut policies, and trade policies. Due to inherent difficulties regarding measuring activity of the current presidency and the fact that Obama has not had the same large range in approval rating, I measure only the approval rating and House roll call votes on various pieces of healthcare legislation and do not take into account other Obama policies. I attempt to focus not only on the introductory and final pieces of legislation, the Service Members Home Ownership Tax Act and the Patient Protection and Affordable Care Act, but also the smaller pieces of legislation, including amendments and Republican attempts at repeal. My data also include the recent Continuing Appropriations Act that ended the shutdown, which also represents a big win for Obama in the healthcare debate. Although Obama has not had the same compelling variation in his approval rating, I use the same method in order to determine the significance of approval rating on both initial healthcare policy and ending the shutdown. To examine the policies pushed by Bush and Obama, I plotted the data on scatterplots and found the regression lines, equation, and R-squared values to determine correlation and predictor value between the two variables. I placed the independent variable, approval rating, on the X-axis and the dependent variable, number of roll call votes, on the Y-axis. The graphs Davis (12) displaying the plots, trendlines, and regression and slope equations can be found in the Appendix. RESULTS There is a slight statistical significance between approval rating and votes in favor of the president’s standing for legislation that they specifically push. This is implicit from the slopes and R-squared values of the regression lines on each graph, despite the variation in R-squared values. These values suggest how well the model predicts the data, and in each case there are different reasons for why the R-squared value may be what it is. The R-squared values for Bush on policies of interest range from .69 to .28, as shown in Figure 4 and Figure 6, with the most significant value found on Iraq War policies; approval rating highly predicted the votes on the Iraq war as the value R2=1 is the total and a value closer to 1 suggests stronger predictive power. The R-squared value for Obama's healthcare policies and roll call votes is R2=.06 (Figure 6), which is a much less significant value, but in this application is certainly still relevant given historical context. The value R2=.69 for the Iraq war data suggests that approval rating affects votes on legislation that is in response to a national crisis or legislation falling under what is perceived to be the president’s area of expertise, in this case, presidential war power authority. The president’s general authority of determining situations of war may be why Bush was theoretically better able to effectively switch undecided votes. The cases of tax and trade policies may not provide such high correlation results because they are domestic and Senate issues, respectively. As explained above, the partisan divide characterizing healthcare may explain why Obama’s approval had little effect in roll call outcome; even House members lying closer to the center of the ideological spectrum have an incentive to vote with their party on the most important partisan issues of the time. Yet, in each case, there is a positive coefficient of Davis (13) determination, meaning that higher approval rating does have a possibility of predicting a higher number of roll call votes. CONCLUSION My hypothesis is proven neither true nor false through my research design and literature review. There is a chance that political capital affects decision-making in the House, but that decision-making may be more heavily affected by political capital exerted on policies specific to presidential expertise or authority. Although my analysis may not give substantial understanding for why Congress votes a certain way, it could help in future prediction of whether certain events play an important role in the passage of legislation. As a source of comparison, the Bush data demonstrate the importance of political capital on war-making issues and issues around the time of a “rally around the flag” effect. The Obama data suggest that political capital is not as effective on policies that are intrinsically partisan and involve the question regarding intervention of government in citizen life. Despite the possible issues with statistical significance of the data, there is scholarly consensus that as an informal power, presidential persuasion plays a deep and critical yet complicated role in the Congressional arena. Results of the literature review and historical analysis provide reason to believe that the higher a president’s approval rating with the public, the easier negotiations will be, especially on the specific issues of Bush’s Iraq war policies and Obama’s healthcare policies. Both were and are defining elements of each administration and much literature seems to focus on the efforts of each president in passing pieces of legislation of this nature. Post-9/11 Bush experienced a time of great national crisis characterized by the “rally around the flag” effect, which allowed him to achieve many bipartisan agreements. (Schier) Bush used this rare time of a near-perfect approval rating to his advantage as he pushed legislation with “coalitional and bargaining skills,” Davis (14) such as in the case of the “approval of additional tax cuts.” (18) As this effect died off and conditions such as Congressional Democrat backlash (in the form of filibuster and federal court challenges) and the public approval rating dropped, as it inevitably does, Bush found it much harder to sustain policies such as continued authorization for the Iraq War. (9) Although not well reflected in data, Obama assuredly used the influence and prestige of the new administration to jumpstart early negotiations in the healthcare process. In contemporary debate on social issues, the vote will always be close; the fact that Obama was able to accomplish the passage of a healthcare policy at all, let alone with the polarization of Congress that characterized his position in 2009, is a testament to his ability to use presidential persuasion. This discussion is relevant to the recent government shutdown debate and political parties in the state in which they are found today, as they are “now able to learn more about public opinion through private and media polls” and disseminate that information quickly in building a strategy for party power. (Schier 17) Much scholarly work is still necessary to draw conclusions on the influence Obama wielded in the circumstances surrounding the shutdown. But without creating points of compromise with Republican leaders, the concessions made by Obama could have been more severe with bigger consequences for the Democratic Party. With sustained study, the political science community may be able to predict these Congressional consequences and better understand why the United States finds itself in such a unique time for inter-branch competition. Davis (15) APPENDIX IRAQ WAR DATA Legislation Approval Votes in Rating Favor (%) 62 296 Authorization for Use of Military Force Against Iraq Resolution of 2002 Emergency Wartime Supplemental Appropriations Act, 2003 National Defense Authorization Act for Fiscal Year 2004 Intelligence Authorization Act for Fiscal Year 2004 Deploring the abuse of persons in United States custody in Iraq National Defense Authorization Act for Fiscal Year 2006 Disapproving of the decision of the President announced on January 10, 2007 U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 To provide for the redeployment of United States Armed Forces and defense contractors from Iraq. U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 Responsible Redeployment from Iraq Act 70 52 61 48 45 32 414 362 410 365 390 182 34 218 33 171 33 221 31 223 Figure 1 Votes in Favor of President Bush on Iraq War Policies and Approval Rating y = 5.6072x + 40.256 R² = 0.69414 500 400 300 Number of Votes 200 100 0 0 10 20 30 40 50 Approval Rating (%) Figure 2 60 70 80 Davis (16) TAX LEGISLATION DATA Legislation Economic Growth and Tax Relief Reconciliation Act of 2001 Providing for consideration of the bill (H.R. 1836) to provide for reconciliation pursuant to section 104 of the concurrent resolution on the budget for fiscal year 2002. Waiving points of order against the conference report to accompany the bill (H.R. 1836) Economic Growth and Tax Relief Act of 2001 Marriage Penalty and Family Tax Relief Act of 2001 Death Tax Elimination Act of 2001 Job Creation and Worker Assistance Act of 2002 Jobs and Growth Tax Relief Reconciliation Act of 2003 Approval Rating (%) 55 55 Votes in Favor 55 213 58 52 59 88 76 230 282 274 417 231 Figure 3 Votes in Favor of President Bush on Tax Policies and Approval Rating R² = 0.52101 y = 3.803x + 25.387 500 400 300 Number of Votes 200 100 0 0 20 40 60 Approval Rating (%) Figure 4 80 230 220 100 Davis (17) TRADE LEGISLATION DATA Legislation Trade Act of 2002 Export-Import Bank Reauthorization Act of 2002 Trade Promotion Authority of 2002 To reauthorize the trade adjustment assistance program under the Trade Act of 1974, and for other purposes Clean Diamond Trade Act Andean Trade Promotion and Drug Eradication Act United States-Chile Free Trade Agreement Implementation Act United States-Singapore Free Trade Agreement Implementation Act United States-Australia Free Trade Agreement Implementation Act Customs Border Security and Trade Agencies Authorization Act of 2004 United States-Morocco Free Trade Agreement Implementation Act Dominican Republic-Central America-United States Free Trade Agreement Implementation Act United States Trade Rights Enforcement Act United States-Bahrain Free Trade Agreement Implementation Act United States-Oman Free Trade Agreement Implementation Act To authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Vietnam. To modify temporarily certain rates of duty and make other technical amendments to the trade laws, to extend certain trade preference programs, and for other purposes. United States-Peru Trade Promotion Agreement Implementation Act Trade and Globalization Assistance Act of 2007 Approval Votes in Rating Favor (%) 87 373 70 344 85 215 87 420 87 68 59 59 48 48 48 48 408 215 299 309 314 341 323 217 48 43 37 33 240 327 221 228 38 212 32 31 285 264 Figure 5 Votes in Favor of President Bush on Trade Policies and Approval Rating = 0.28023 y R² = 1.8038x + 192.12 500 400 Number of 300 Votes 200 100 0 0 20 40 60 Approval Rating (%) Figure 6 80 100 Davis (18) HEALTHCARE DATA Legislation Health Insurance Restrictions and Limitations Clarification Act Veterans Health Care Budget Reform and Transparency Act of 2009 *Service Members Home Ownership Tax Act of 2009 Medicare Premium Fairness Act Affordable Health Care for America Act Health Insurance Industry Fair Competition Act Patient Protection and Affordable Care Act - Concur w/ Senate Amendments Assuring Quality Care for Veterans Act Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 Family Health Care Accessibility Act of 2010 Medicare and Medicaid Extenders Act of 2010 Repeal of the Job-Killing Health Care Law Act Repeal of Mandatory Funding in the Patient Protection and Affordable Care Act Protect Life Act - Amend to Stop Abortion Coverage Repeal the Patient Protection and Affordable Care Act Fairness for American Families Act - Delay Application of Individual Mandate Keep the IRS Off Your Health Care Act of 2013 Keep Your Health Plan Act of 2013 Continuing Appropriations Act, 2014 Approval Votes in Rating Favor (%) 62 422 59 409 56 219 51 406 54 220 49 406 50 219 45 413 45 417 44 46 51 51 417 409 189 183 40 50 48 44 41 42 172 195 174 185 157 235 Figure 7 Number of Votes in Favor of President Obama on Healthcare Policies and Approval Rating y = 4.4497x + 69.351 R² = 0.05664 450 400 350 300 250 Number of Votes 200 150 100 50 0 0 10 20 30 40 Approval Rating (%) Figure 8 50 60 70 Davis (19) WORKS CITED Chugh, Madhu. 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