During the grim days of 2010, it became common to worry that President Obama was throwing his electoral prospects into disarray. He failed to win over key groups like the white working class, even as his actions divided and demoralized his own core coalition: an emerging, but still fragile alliance of minorities, young voters, moderate suburbanites, and other growing demographic groups. "One hallmark of 2009 and 2010 was the demobilization of the Democratic base," wrote pundit Brent Budowsky in The Hill, explicating this view. In this telling, Obama's compromises on health care, the economy, Wall Street regulation, and tax cuts for the rich had deeply alienated the president's core supporters; the Obama-McConnell deal to preserve the Bush tax cuts, especially, was a cynical feint that would bleed enthusiasm on the left.
In reality, nothing could be more distant from the truth. Far from dividing Obama's coalition, the tax-cut deal is brilliant move that could cement it, in the process winning back some of the white working-class voters who deserted the Democrats in 2010. That's because Democrats' devastating defeat in the midterm elections resulted primarily from the weak economy and the government’s perceived failure to improve it, not from any lack of resoluteness in upholding liberal principles or applying liberal rhetoric. Therefore, the central task for the Obama administration after the election was—and is—to improve the economy by any means necessary.
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If Obama is reelected in 2012, his tax-cut deal will most likely be recognized as the brilliant move that turned the corner for him politically and assured his second term. And liberals who are still upset about the compromise should be careful not to confuse their reactions with those of the Obama coalition's rank-and-file. These voters will ultimately be more concerned with the state of the economy than with discrete policy issues like the level of income tax levied on the rich. In the end it will come down to results. As Chinese leader Deng Xiaoping, himself an adopter of ideologically hybrid policies, put it: “Who cares if a cat is black or white, so long as it catches mice?”
http://www.tnr.com/article/politics/80860/deal-of-the-century-obama-tax-deal