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A book about Treasury's Paul O'Neill paints a presidency where ideology and politics rule the day
TIME ^ | 01/19/04 | JOHN F. DICKERSON

Posted on 01/11/2004 7:47:14 AM PST by Pikamax

N A T I O N Confessions of a White House Insider A book about Treasury's Paul O'Neill paints a presidency where ideology and politics rule the day By JOHN F. DICKERSON

Saturday, Jan. 10, 2004 If anyone would listen to him, Paul O'Neill thought, Dick Cheney would. The two had served together during the Ford Administration, and now as the Treasury Secretary fought a losing battle against another round of tax cuts, he figured that his longtime colleague would give him a hearing.

O'Neill had been preaching that a fiscal crisis was looming and more tax cuts would exacerbate it. But others in the White House saw a chance to capitalize on the historic Republican congressional gains in the 2002 elections. Surely, Cheney would not be so smug. He would hear O'Neill out. In an economic meeting in the Vice President's office, O'Neill started pitching, describing how the numbers showed that growing budget deficits threatened the economy. Cheney cut him off. "Reagan proved deficits don't matter," he said. O'Neill was too dumbfounded to respond. Cheney continued: "We won the midterms. This is our due."

A month later, Paul O'Neill was fired, ending the rocky two-year tenure of Bush's first Treasury Secretary, who became known for his candid statements and the controversies that followed them. Rarely had a person who spoke so freely been embedded so high in an Administration that valued frank public remarks so little.

Now O'Neill is speaking with the same bracing style in a book written by Pulitzer prizewinning journalist Ron Suskind. The Price of Loyalty: George W. Bush, the White House and the Education of Paul O'Neill traces the former Alcoa CEO's rise and fall through the Administration: from his return to Washington to work for his third President, whom he believed would govern from the sensible center, through O'Neill's disillusionment, to his firing, executed in a surreal conversation with Cheney, a man he once considered a fellow traveler. Suskind had access not only to O'Neill but also to the saddlebags he took with him when he left town, which included a minute-by-minute accounting of his 23 months in office and 19,000 pages of documents on CD-ROM.

So, what does O'Neill reveal? According to the book, ideology and electoral politics so dominated the domestic-policy process during his tenure that it was often impossible to have a rational exchange of ideas. The incurious President was so opaque on some important issues that top Cabinet officials were left guessing his mind even after face-to-face meetings. Cheney is portrayed as an unstoppable force, unbowed by inconvenient facts as he drives Administration policy toward his goals.

O'Neill's tone in the book is not angry or sour, though it prompted a tart response from the Administration. "We didn't listen to him when he was there," said a top aide. "Why should we now?"

But the book is blunt, and in person O'Neill can be even more so. Discussing the case for the Iraq war in an interview with TIME, O'Neill, who sat on the National Security Council, says the focus was on Saddam from the early days of the Administration. He offers the most skeptical view of the case for war ever put forward by a top Administration official. "In the 23 months I was there, I never saw anything that I would characterize as evidence of weapons of mass destruction," he told TIME. "There were allegations and assertions by people.

But I've been around a hell of a long time, and I know the difference between evidence and assertions and illusions or allusions and conclusions that one could draw from a set of assumptions. To me there is a difference between real evidence and everything else. And I never saw anything in the intelligence that I would characterize as real evidence." A top Administration official says of the wmd intelligence: "That information was on a need- to-know basis. He wouldn't have been in a position to see it."

From his first meeting with the President, O'Neill found Bush unengaged and inscrutable, an inside account far different from the shiny White House brochure version of an unfailing leader questioning aides with rapid-fire intensity. The two met one-on-one almost every week, but O'Neill says he had trouble divining his boss's goals and ideas. Bush was a blank slate rarely asking questions or issuing orders, unlike Nixon and Ford, for whom O'Neill also worked. "I wondered from the first, if the President didn't know the questions to ask," O'Neill says in the book, "or if he did know and just not want to know the answers? Or did his strategy somehow involve never showing what he thought? But you can ask questions, gather information and not necessarily show your hand. It was strange." In larger meetings, Bush was similarly walled off. Describing top-level meetings, O'Neill tells Suskind that during the course of his two years the President was "like a blind man in a roomful of deaf people."

In his interview with TIME, O'Neill winces a little at that quote. He's worried it's too stark and now allows that it may just be Bush's style to keep his advisers always guessing. In Suskind's book, O'Neill's assessment of Bush's executive style is a harsh one: it is portrayed as a failure of leadership. Aides were left to play "blind man's bluff," trying to divine Bush's views on issues like tax policy, global warming and North Korea. Sometimes, O'Neill says, they had to float an idea in the press just to scare a reaction out of him. This led to public humiliation when the President contradicted his top officials, as he did Secretary of State Colin Powell on North Korea and Environmental Protection Agency administrator Christine Todd Whitman on global warming. O'Neill came to believe that this gang of three beleaguered souls—only Powell remains—who shared a more nonideological approach were used for window dressing. We "may have been there, in large part, as cover," he tells Suskind.

If the President was hard to read, the White House decision-making process was even more mysterious. Each time O'Neill tried to gather data, sift facts and insert them into the system for debate, he would find discussion sheared off before it could get going. He tried to build fiscal restraint into Bush's tax plan but was thwarted by those who believed, as he says, that "tax cuts were good at any cost." He was losing debates before they had begun. The President asked for a global-warming plan one minute and then while it was being formulated, announced that he was reversing a campaign pledge to cut carbon dioxide emissions and pulling out unceremoniously from the Kyoto global- warming treaty, short-circuiting his aides' work. The President was "clearly signing on to strong ideological positions that had not been fully thought through," says O'Neill. As for the appetite for new ideas in the White House, he told Suskind, "that store is closed."

To grope his way out of the wilderness, O'Neill turned to his old friends from the Ford Administration, Alan Greenspan and Dick Cheney. According to the book, Greenspan agreed with many of his proposals but could not do much from his Delphian perch. When O'Neill sought guidance from the Vice President about how to install a system that would foster vigorous and transparent debate, he got grumbles and silence but little sympathy. Soon O'Neill concluded that his powerful old colleague was rowing in a different direction."I realized why Dick just nodded along when I said all of this, over and over, and nothing ever changed," he says in the book. "This is the way Dick likes it."

Where ideology did not win, electoral politics did. Overruling many of his advisers, the President decided to impose tariffs on imported steel to please voters in key swing states like Pennsylvania, West Virginia and Ohio.

When the corporate scandals rocked Wall Street, O'Neill and Greenspan devised a plan to make CEOs accountable. Bush went with a more modest plan because "the corporate crowd," as O'Neill calls it in the book, complained loudly and Bush could not buck that constituency. "The biggest difference between then and now," O'Neill tells Suskind about his two previous tours in Washington, "is that our group was mostly about evidence and analysis, and Karl (Rove), Dick (Cheney), Karen (Hughes) and the gang seemed to be mostly about politics. It's a huge distinction."

A White House that seems to pick an outcome it wants and then marshal the facts to meet it seems very much like one that might decide to remove Saddam Hussein and then tickle the facts to meet its objective. That's the inescapable conclusion one draws from O'Neill's description of how Saddam was viewed from Day One. Though O'Neill is careful to compliment the cia for always citing the caveats in its findings, he describes a White House poised to overinterpret intelligence. "From the start, we were building the case against Hussein and looking at how we could take him out and change Iraq into a new country," he tells Suskind. "And, if we did that, it would solve everything. It was about finding a way to do it. That was the tone of it. The President saying, 'Fine. Go find me a way to do this.'"

Cheney helped bring O'Neill into the Administration, acting as a shoehorn for O'Neill, who didn't know the President but trusted the wise counselor beside him. So it was perhaps fitting that Cheney would take O'Neill out. Weeks after Bush had assured O'Neill that rumored staff changes in the economic team did not mean his job was in peril, Cheney called. "Paul, the President has decided to make some changes in the economic team. And you're part of the change," he told O'Neill. The bloodless way he was cut loose by his old chum shocked O'Neill, Suskind writes, but what came after was even more shocking. Cheney asked him to announce that it was O'Neill's decision to leave Washington to return to private life. O'Neill refused, saying "I'm too old to begin telling lies now."

Suskind's book—informed by interviews with officials other than O'Neill—is only a partial view of the Bush White House. Bush's role on key topics like education, stem-cell research and aids funding is not explored. Bush's role as a military leader after 9/11 is discussed mostly through O'Neill's effort to stop terrorist funding. Bush comes across as mildly effective and pleased with O'Neill's work. The book does not try to cover how Bush engaged with his war cabinet during the Afghan conflict or how his leadership skills were deployed in the making of war. On the eve of the Iraq war, however, O'Neill does tell Suskind that he marvels at the President's conviction in light of what he considers paltry evidence: "With his level of experience, I would not be able to support his level of conviction."

There is no effort to offer an opposing analysis of O'Neill's portrayal of his tenure. The book lists his gaffes—he ridiculed Wall Street traders, accused Democrats of being socialists and disparaged business lobbyists who were seeking a tax credit that the President supported—but it portrays these moments as examples of brave truth telling in a town that doesn't like it. White House aides have a different view: It wasn't just that O'Neill was impolitic, they say; his statements had real consequences—roiling currency markets and Wall Street. What O'Neill would call rigor, Bush officials say, was an excessive fussiness that led to policy gridlock and sniping within the economic team.

O'Neill says he hopes that straight talk about the broken decision-making process in the White House will highlight the larger political and ideological warfare that has gripped Washington and kept good ideas from becoming law. Perhaps naively or arrogantly, or both, he even believes it may help change the climate. Ask him what he hopes the book will accomplish, and he will talk about Social Security reform in earnest tones: tough choices won't be made in Washington so long as it shuns honest dialogue, bipartisanship and intellectual thoroughness. O'Neill may not have been cut out for this town, but give him this: he does exhibit the sobriety and devotion to ideas that are supposed to be in vogue in the postironic, post- 9/11 age.

Loyalty is perhaps the most prized quality in the White House. In the book, O'Neill suggests a very dark understanding of what happens to those who don't show it. "These people are nasty and they have a long memory," he tells Suskind. But he also believes that by speaking out even in the face of inevitable White House wrath, he can demonstrate loyalty to something he prizes: the truth. "Loyalty to a person and whatever they say or do, that's the opposite of real loyalty, which is loyalty based on inquiry, and telling someone what you really think and feel—your best estimation of the truth instead of what they want to hear." That goal is worth the price of retribution, O'Neill says. Plus, as he told Suskind, "I'm an old guy, and I'm rich. And there's nothing they can do to hurt me."

From the Jan. 19, 2004 issue of TIME magazine


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: bookreview; pauloneill; priceofloyalty
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1 posted on 01/11/2004 7:47:14 AM PST by Pikamax
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To: Pikamax
A publicly fired former employee talking down about the boss who fired him. This is news?
2 posted on 01/11/2004 7:51:50 AM PST by Bubba_Leroy
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To: All
He Pledges his Allegiance to the Left


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3 posted on 01/11/2004 7:52:38 AM PST by Support Free Republic (Your support keeps Free Republic going strong!)
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To: Bubba_Leroy
It aint good.
4 posted on 01/11/2004 7:54:36 AM PST by cynicom
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To: Pikamax
Cheney said Reagan proved deficits don't matter?

I am sure Cheney never even thought this lie. Anyone who has read about Reagan knows he was against deficits.

This O'Neil guy is a spurned b itch.
5 posted on 01/11/2004 7:55:32 AM PST by adakota
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To: Pikamax
Deficit spending is far prefereable to raising taxes to pay for the kind of spending going on...
If taxes were used to pay for this spending...there would be no Republican Party...

This way payment is defered to a few generations...we wont even be around then...so who cares.

Dont expect a too compassionate future generation when it comes to the treatment of their elders who enslaved them though...

Kervorkian will be a hero in the future

imo
6 posted on 01/11/2004 7:58:30 AM PST by joesnuffy (Moderate Islam Is For Dilettantes)
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To: Pikamax
"ideology and electoral politics so dominated the domestic-policy process during his tenure that it was often impossible to have a rational exchange of ideas."

Wow! That's NEVER happened before has it? Something really NEW under the sun! (Heavy Sarcasm here)

7 posted on 01/11/2004 7:58:52 AM PST by Enterprise
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To: Pikamax
When O'Neill sought guidance from the Vice President about how to install a system that would foster vigorous and transparent debate, he got grumbles and silence but little sympathy.

When would it ever be up to the SecTreas to install systems of any type in the Cabinet?

O'Neill is a little man, who thought his ideas more worthy than those of his betters, and now thinks it so unfair that his betters didn't understand him.

8 posted on 01/11/2004 8:12:57 AM PST by Mike Darancette (Proud member - Neoconservative Power Vortex)
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To: Enterprise
O'Neil is someone who is used to being the boss and who probably never failed at anything before, but who was a complete and utter failure as Treasury Secretary. He could probably use some therapy.
9 posted on 01/11/2004 8:14:23 AM PST by Bubba_Leroy
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To: Pikamax

10 posted on 01/11/2004 8:28:25 AM PST by paul in cape
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To: paul in cape
Dumb and dumber --
11 posted on 01/11/2004 8:29:54 AM PST by thesummerwind (Like painted kites, those days and nights, they went flyin' by)
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To: Bubba_Leroy
He could probably use some therapy.

Therapy.

Maybe we should send him to do those morning laps with Weasley Clark for therapy!

12 posted on 01/11/2004 8:33:18 AM PST by thesummerwind (Like painted kites, those days and nights, they went flyin' by)
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To: Pikamax
"O'Neill says he hopes that straight talk about the broken decision-making process in the White House will highlight the larger political and ideological warfare that has gripped Washington and kept good ideas from becoming law. Perhaps naively or arrogantly, or both, he even believes it may help change the climate"

Naive is putting it nicely. His book will probably move the thermostat from frigid to freezing. . .

O'Neil had plenty of info available to him; but of course, he never had it all. . .

. . .the author is describing the President and his presidency; but not unlike the 'blind man describing an elephant'; by holding it's ear. . .O'Neil's conclusions should be considered from a similar perspective.

13 posted on 01/11/2004 8:37:18 AM PST by cricket
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To: Bubba_Leroy
Oneill refered to Cheney as a "Fellow Traveler". That term is a heavy socialist term as I understand it. Perhaps Oneill was a mole who was isolated when they caught on to him. And those trips with Bono had to keep him away from meetings of import.

I thought he was a bad apple from a long way off.

14 posted on 01/11/2004 8:44:59 AM PST by Thebaddog (Woof!)
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To: Pikamax
Nothing unexpected here from TIME.
15 posted on 01/11/2004 8:54:35 AM PST by Lancey Howard
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To: Pikamax
The only people who will ever know what O'Neill's book is about are people who are waiting to get their hair cut or have a cavity filled. And that's only if the other people have already grabbed all the Sports Illustrateds.
16 posted on 01/11/2004 9:00:07 AM PST by Lancey Howard
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To: Pikamax; ninenot
1. That O'Neill worked in the Ford Administration demonstrates why it was necessary for Ronaldus Maximus to primary Ford with intent to oust him. The GOP has thankfully moved on and left accommodationist me-tooism behind. Gerald Ford's highest ambition in the House was to get the chance to play golf once in a while with the Demonratic speakers.

2. Apparently Dubya made the right move when he fired O'Neill because the economy promptly began to improve upon the removal of this tax-hiking putz.

3. Did I read correctly that O'Neill who went from being Chairman of Alcoa Aluminum to Treasury Secretary under Bush is whining in this article about the influence of "the corporate crowd?"

4. Unlike his ineffectual and generally inoffensive father, Dubya and his mother Barbara have been described as the WASP Corleones because they will never forgive or forget slights or attacks against Bush the Elder. Dubya is not likely to forgive or forget such disloyalty as O'Neill's. Without serving as Treasury Secretary, O'Neill would have already slipped irretrievably into the swamp of permanent obscurity. Who was O'Neill's predecessor or successor at Alcoa? Does anyone know outside of Alcoa? Does anyone care?

5. If O'Neill thinks the administration folk are nasty now, as Al Jolson used to say, he ain't seen nuthin' yet. If he really thinks that being old and rich will insulate him, that tells you something about his mindset and why he was quite expendable. On the other hand, Mr. O'Neill, please meet the IRS auditing team that will be with you from now until death do you part.

6. O'Neill's remarks about a need for bipartisanship in Social Security reform mean that he thinks you should do without Social Security for you, your parents and whomever.

7. The article about the book suggests that it was a gaffe by O'Neill to call the Demonrats socialists. Only if it is a gaffe to call the sun warm. Like a stopped clock, even O'Neill may be right twice a day.

8. We have the obligation to shoot our own dogs. Bush the Elder failed to deal effectively with Saddam Hussein and paid a price. Dubya took care of that particular problem and took care of O'Neill as well.

9. O'Neill fails to take up the obvious Dubya blunder: Dubya appointed a jerk like O'Neill to a position like Treasury Secretary in the first place. Quelle surprise!

17 posted on 01/11/2004 9:02:44 AM PST by BlackElk (The auto-da-fe is God's chosen way to purge sin from the land!)
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To: Pikamax
The bloodless way he was cut loose by his old chum shocked O'Neill, Suskind writes, but what came after was even more shocking. Cheney asked him to announce that it was O'Neill's decision to leave Washington to return to private life. O'Neill refused, saying "I'm too old to begin telling lies now."

Shocking! Stunning! Unheard of!

The fact that O'Neill can't tell the most commonly told white lie in the world for the team - I'm leaving to spend more time my family - says a lot about off kilter this guy was.

I'm sure after just his confirmation hearing, the administration knew they had picked a lemon and were just humoring him.

Based on what he's doing now, the administration's hunches on his judgment were clearly right.

18 posted on 01/11/2004 9:09:29 AM PST by PianoMan (And now back to practicing)
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To: BlackElk
Cheney's blunder and I consider adding Madeline Albright to his staff another monumental blunder.
19 posted on 01/11/2004 9:47:17 AM PST by OldFriend (Always understand, even if you remain among the few)
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To: Pikamax; All
O'Neil's behavior reminds me of that displayed by David Stockman and Donald Regan in 1986 and 1988 respectively!

I was an college undergrad at the time and remember my leftist professors positively salivating over the books written by both men(yes, it was nauseating):

DAVID STOCKMAN, "The Triumph of Politics: Why the Reagan Revolution Failed."
[Stockman was the Director of the White House Office of Management & Budget during President Reagan's first term]

EXCERPT:
"Looking back, the only thing that can be said to have been innocent about the Reagan Revolution was the objective of improving upon what we inherited. The inflation-battered American economy of 1980 was no more sustainable or viable than is the deficit-burdened economy of 1986. Likewise, the bloated American welfare state budget of 1980 was not very defensible; it merited at least a strong and principled challenge.

But the Reagan Revolution’s abortive effort to rectify these inherited conditions cannot be simply exonerated as a good try that failed. The magnitude of the fiscal wreckage and the severity of the economic dangers that resulted are too great to permit such an easy verdict. In the larger scheme of democratic fact an economic reality there lies a harsher judgment. In fact, it was the basic assumptions and fiscal architecture of the Reagan Revolution itself which first introduced the folly that now envelops our economic governance.

The Reagan Revolution was radical, imprudent, and arrogant. It defied the settled consensus of professional politicians and economists on its two central assumptions. It mistakenly presumed that a handful of ideologue were right and all the politicians were wrong about what the American people wanted from government. And it erroneously assumed that the damaged, disabled, inflation- swollen US economy inherited from the Carter Administration could be instantly healed when history and most professional economist said it couldn’t be.

By the time of the White House debate of early November 1981, it had become overwhelmingly clear that the Reagan Revolution’s original political and economic assumptions were wrong by a country mile. By then the veil of the future has already parted and we were viewing reality from the other side. What we saw invalidated the whole plan—right there and then.

The ensuing years only amplified what we had already learned by the eleventh month.... We were not headed toward a brave new world, as I had thought in February. We were not headed toward a vindication of the President’s half-revolution, as Don Regan and the supply siders fatuously insisted in November. Where we were headed was toward a fiscal catastrophe."


DONALD REGAN, "For the Record"
[Regan was President Reagan's Treasury Secretary from 1981-1985. In 1985, he switched jobs with James Baker who was then the President's Chief of Staff. In 1987, Regan was fired (he supposedly learned of his firing when the news was broadcast on CNN)]

EXCERPT:
"In the four years that I served as Secretary of the Treasury I never saw President Reagan alone and never discussed economic philosophy or fiscal and monetary policy with him one-on-one. From first day to last at Treasury, I was flying by the seat of my pants. The President never told me what he believed or what he wanted to accomplish in the field of economics."

[Regan also used this book to reveal that Nancy Reagan used astrology to determine the President's travel schedule and speech content. NOTE: Regan blamed Nancy for his termination! petty, petty, petty!]


AT LEAST THESE TWO ADVISORS WAITED UNTIL REAGAN WAS RE-ELECTED TO PUBLISH THEIR EGO-DRIVEN/REVENGE-INSPIRED TOMES [OF COURSE, THEY DID TIME THEIR BOOK RELEASES TO TAKE ADVANTAGE OF THE IRAN-CONTRA CONTROVERSY!]


20 posted on 01/11/2004 10:11:20 AM PST by DrDeb
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