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Tea Party again demonstrates clout

(CNN) — The Tea Party movement basked in the glow of victory Wednesday after its favorites won primary elections in Delaware and New York the night before over more mainstream Republicans, demonstrating again the clout of the political right.

Now the question is whether the right-wing candidates can also defeat Democratic rivals in November’s congressional elections, when the stakes are higher and the full electorate is deciding.

Candidates backed by the Tea Party have won at least eight major GOP nomination fights across the country this year, in Alaska, Delaware, Florida, Kentucky, Nevada, New York, Pennsylvania and Utah. Tea Party candidates have also shown significant strength in numerous other state and local contests.

The results in Delaware and New York highlighted the last major day of primary voting before the upcoming election in just under seven weeks.

Voting in seven states and the District of Columbia included embattled veteran U.S. Rep. Charles Rangel’s victory in his New York Democratic primary despite allegations of ethics violations, and D.C. Mayor Adrian Fenty’s bid to hold off a major primary challenger.

In addition, former Gov. Robert Ehrlich won the Republican gubernatorial primary in Maryland to set up a rematch against Martin O’Malley, the Democrat who ousted him in 2006.

In Delaware, conservative political commentator Christine O’Donnell easily defeated nine-time U.S. Rep. Mike Castle in the Republican U.S. Senate primary, giving the Tea Party movement another major victory over a candidate backed by the national GOP.

“We the people will have our voice heard in Washington, D.C., once again,” a beaming O’Donnell told exuberant supporters at her victory party in Dover.

O’Donnell won more than 53 percent of the vote in the bitter campaign that displayed internal Republican warfare between conservative Tea Party supporters and the more moderate party structures.

Castle was backed by the national Republican Party, while O’Donnell received the endorsement of former Alaska Gov. Sarah Palin as well as $150,000 in late funding from the Tea Party Express.

O’Donnell, running as a Washington outsider, insisted the Republican establishment was trying to drive her out of the race and hand victory to Castle, whom she refers to as “the anointed one.”

Video: O’Donnell thanks Palin in victory

Video: Rangel wins despite ethics charges

Video: Paladino accepts nod

Video: Lazio concedes to Paladino

In response, conservative stalwart Bill Kristol, who fears O’Donnell is incapable of winning the Senate seat in November, said: “I know Sarah Palin. I respect Sarah Palin. And with all due respect — Christine O’Donnell is no Sarah Palin.”

In her victory speech, O’Donnell made a plea for unity, saying: “If those same people who fought against me work just as hard for me, we will win.”

Later, she told CNN that she can win without the support of the national Republican Party.

“They don’t have a winning track record,” O’Donnell said of the national party. “If they’re too lazy to put in the effort that we need to win, then, so be it.”

The National Republican Senatorial Committee offered its congratulations to O’Donnell immediately after the result was determined.

“We congratulate Christine O’Donnell for her nomination this evening after a hard-fought primary campaign in Delaware,” said a statement by Rob Jesmer, the NRSC executive director.

However, a top Republican official told CNN Tuesday night that O’Donnell will have to show she can generate viable support before the national party will give her money.

“It is now incumbent on Sarah Palin, (U.S. Sen.) Jim DeMint and the Tea Party Express to help support her,” the official said on condition of not being identified by name. “They got her here. Now make it happen.”

O’Donnell told CNN’s “American Morning” Wednesday that she has not yet heard from top leaders in the Republican Party hierarchy.

“There are a lot of people rallying behind me who are frustrated that the Republican Party has lost its way. What you see in this race and then especially the attitude after our win is that, you know, the so-called leaders have been proven wrong. They got behind a candidate who didn’t even support our party principles, supported the liberals nearly 70 percent of the time some years. And they chose to get behind him because they were taking the easy way out.”

O’Donnell will face Democrat Christopher Coons, the New Castle County executive, in November for the seat formerly held by Vice President Joe Biden. This is O’Donnell’s third run for the U.S. Senate.

Coons took aim at O’Donnell on his website after her victory, saying “we face an ideology rather than a record.”

“O’Donnell will fight to roll back a woman’s right to choose and lead the charge against stem-cell research, falsely claiming that this ground breaking research exploits women. She has a record of supporting discrimination against gays and lesbians, and pressing for public schools to teach creationism,” he said.

O’Donnell, who told “American Morning” that the “biggest concern on everyone’s mind is how we’re going to get jobs to Delaware.”

But Coons says O’Donnell “has no plan for putting Delawareans back to work and wants to open our coastlines to more dangerous off-shore drilling risks.”

Commenting on the fact that Coons had a picture of O’Donnell on his website’s main page, she said, “I thank him for introducing me to the Democratic voters I have not met.”

In New York, conservative Carl Paladino defeated Rick Lazio in the Republican gubernatorial primary to set up a November showdown with Democrat Andrew Cuomo, the son of former Gov. Mario Cuomo. Paladino received Tea Party support in defeating Lazio, who also was supported by some conservative groups.

The New York governor’s post has proven hazardous in recent years. Gov. Eliot Spitzer resigned amid a prostitution scandal, and his successor, David Paterson, decided against running for another term due to allegations of wrongdoing involving World Series tickets and a domestic abuse case involving an aide.

In New Hampshire, conservative candidate Ovide Lamontagne saw an early lead vanish in his bid to upset former state Attorney General Kelly Ayotte, the candidate favored by establishment Republicans. The winner will run in November to succeed retiring Republican Sen. Judd Gregg.

Ayotte gave up her state post to run for the Senate nomination with encouragement from national Republicans. Considered the favorite in the seven-candidate contest for months, Ayotte instead found herself with a razor-thin lead over Lamontagne, a Manchester attorney and the 1996 Republican nominee for governor, with 85 percent of the returns counted.

Local Tea Party groups, the conservative New Hampshire Union Leader newspaper and DeMint, the influential conservative senator from South Carolina, all backed Lamontagne.

Unlike O’Donnell in Delaware, though, Lamontagne didn’t get Palin’s endorsement. Instead, Palin backed Ayotte, calling her a “Granite Grizzly” and “the true conservative running for the U.S. Senate in New Hampshire.”

However, Palin’s endorsement and Ayotte’s support from many national Republicans may have backfired in fiercely independent New Hampshire.

Victories by O’Donnell and Paladino, and the possibility of a triumph by Lamontagne in New Hampshire, showed the strength of the Tea Party within the political right, after similar results ousted GOP incumbents or insiders in Idaho and Alaska.

However, the Republican infighting also raised questions about GOP unity heading into November.

Rangel, meanwhile, received help from former President Bill Clinton in defeating five challengers in the Democratic primary for the House seat he has held for 40 years.

Despite allegations by the House ethics committee that Rangel committed financial wrongdoing and harmed the credibility of Congress, he raised more money than his opponents and easily won the vote in his Harlem district.

The situation was reversed in Washington, where Fenty swept into office in 2006 promising to fix the District of Columbia’s struggling schools. But it appeared Wednesday that he won’t have the chance to continue that work. CNN affiliate WUSA reported on its website that the mayor’s spokesman said he planned to call City Council Chairman Vincent Gray to concede the race. WUSA reported that with 90 percent of the votes counted, Fenty trailed Gray by more than 8,400 votes.

The mayor acknowledged the union opposition to his education reform efforts before the vote.

“We’ve got an uphill battle because we made tough decisions,” Fenty said. “We’ll continue to make those tough decisions because they’re right for the people. But we’re not naive. We know this has cost us a little political popularity that we came into the polls with.”

The race is being closely watched far beyond the District of Columbia because the outcome could carry significant implications for the national debate over education reform.

Fenty brought in Michelle Rhee as chancellor of D.C. Public Schools, and she has since become famous for changes that that have become a model of education reform advocated by the Obama administration.

Rhee shut down two dozen schools, fired hundred of educators — including more than 100 teachers this summer — for poor performance, and overhauled the teacher evaluation system to include, for the first time, student performance as a measure of success. Local and national teachers unions have fought her efforts.

CNN’s Jessica Yellin, Paul Steinhauser, Mark Preston, Kate Bolduan, Kevin Bohn, Mary Snow and Tom Cohen contributed to this report.

Tea Party again demonstrates clout

Final act begins in 2010 election

Washington (CNN) — The curtain slammed down on the 2010 primaries Tuesday night crushing centrist Republican Rep. Mike Castle and handing the Tea Party movement a final victory in its battle with the GOP establishment.

Castle’s upset loss to Tea Party favorite Christine O’Donnell was the exclamation point on a bitter and bruising primary season that saw seven incumbents lose re-election and angry political bases turn deaf ears to national leaders.

Republican Sens. Robert Bennett of Utah and Lisa Murkowski of Alaska fell to Tea Party candidates as did South Carolina GOP Rep. Bob Inglis. West Virginia Democratic Rep. Alan Mollohan could not convince voters to re-nominate him for a 15th term, while Michigan Democratic Rep. Carolyn Cheeks Kilpatrick failed in her bid for an eighth term.

Party-switching Alabama Rep. Parker Griffith was unable to convince GOP voters he was a solid Republican, and Pennsylvania’s new Democratic Sen. Arlen Specter was unable to shed his longtime Republican political identity. And let’s not forget the Tea Party’s wins in primaries for open Senate seats in Colorado, Florida, and Kentucky.

Video: O’Donnell thanks Palin in victory

Video: Paladino accepts nod

Video: Rangel wins despite ethics charges

Video: Can Democrats sell success?

And then there was Castle, a soft-spoken former Republican governor turned nine-term congressman, who left the safety of his House seat to run for the Senate seat once held by Vice President Joe Biden. Castle was favored to win the general election, which would have handed the GOP a huge symbolic win. Instead, Castle lost, which now casts doubt over whether Republicans can win this contest.

Once O’Donnell was declared the winner, my friend Stuart Rothenberg, the respected non-partisan political analyst, immediately described Democratic Senate nominee Chris Coons as the favorite to win the race.

“Castle had broad appeal, including to independents and even Democratic voters, while O’Donnell’s appeal is limited to tea party conservatives,” Rothenberg wrote.

And Rothenberg is not the only one who thinks that the Tea Party’s efforts to defeat Castle — who they charge is a “RINO” (Republican In Name Only) — will likely hand Democrats a win in November. A top Republican official told me not to expect to see national Republicans rally around O’Donnell’s candidacy.

“Until she demonstrates some viability in the polls, we are not going to have any money for her,” said the official, who spoke on the condition of anonymity. “It is now incumbent on Sarah Palin, Jim DeMint and the Tea Party Express to help support her. They got her here. Now make it happen.”

Castle is not technically considered an incumbent, but he fit the description of a Washington insider, had the backing of the national GOP and will go down in the history books as the Tea Party’s final GOP scalp of the 2010 primary season.

Now all eyes are focused on November 2, as Republican leaders try to harness the anger and energy of the Tea Party movement and translate it into electoral wins, while Democrats work to build a beachhead in an effort to minimize losses and maintain control of the House.

There is no question that Democrats will lose seats in the House and Senate this year, what remains unanswered is how many?

Republicans need a net pickup of 39 seats in the House to take back the majority, an achievable number if momentum continues to move in the GOP’s direction. It will be harder if not impossible to win the 10 seats needed to wrest control of the Senate from Democratic hands.

Democratic leaders and top party officials have been very clear about their strategy over the next seven weeks: Turn out voters who supported President Obama in 2008 and define each race on its own merits.

“Democrats will individualize each of these House races, make it about candidate A versus candidate B and when voters are left with that choice, Democrats will retain the House,” said Jennifer Crider, deputy executive director of the Democratic Congressional Campaign Committee.

But Democrats will need help from the liberal Democratic base, which at times has been estranged from the national leadership, to help hold back the GOP wave that analysts predict will sweep across the nation.

The influential liberal blogger Markos Moulitsas Z

Tea Party activists gather in Washington

Washington (CNN) — A damp and enthusiastic crowd of self-proclaimed “Tea Party patriots” gathered at the U.S. Capitol building Sunday for a second straight September 12 march on Washington.

The collection of disparate groups and individuals, all supportive of the Tea Party movement, came together to protest what they consider to be out-of-control spending, excessive taxes and a government run amok.

Under the theme of “Remember in November” — a reference to the upcoming mid-term congressional elections — they warned both Democrats and Republicans that it was time for the American people to take back Congress.

“There’s only one power on Earth that is big enough to wreck this country, and that’s big government,” said former House leader Dick Armey, chairman of the FreedomWorks group that organized the rally.

Quoting the film character Dirty Harry Callahan, Armey said “a man’s got to know his limitations,” and added that it was time for the government to know its limitations.

“I believe we’ve gotten the Republican Party’s attention,” Armey said in reference to primary election victories by Tea Party backed candidates over mainstream GOP foes in Kentucky, Alaska and other states.

Tea Party activists hope for similar success in Delaware on Tuesday, throwing their support behind candidate Christine O’Donnell in a GOP Senate primary against Rep. Mike Castle.

Video: The year after the 9/12 rally

Video: Tea Party activists to converge on D.C.

Video: Tea Party candidates middle of the road?

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Before Sunday’s rally, activists marched along Pennsylvania Avenue from the Washington Monument to the steps of the capitol building despite gray skies and persistent rain. Signs reflected their socially conservative views, with some marchers carrying the Revolutionary War-era banner of a coiled snake and the slogan “Don’t Tread on Me,” while other placards read “Less Marx, More Jefferson” and “Big Government is Organized Crime.”

“Here we are in a battle for our lives and a battle for the future of this republic,” FreedomWorks Director of State and Federal Campaigns Brendan Steinhauser told the crowd assembled before the march.

Sunday’s protest was the second September 12 rally in Washington, following a similar event last year.

“Only a few weeks before this important November election, send one more final message to the folks down the street in that dome behind us,” Steinhauser encouraged the marchers. “…We’re tired of the way they’ve been acting in Congress. We’re tired what the president has been doing and we’ve been telling them this for over two years.”

As the march proceeded, a few hecklers along Pennsylvania Avenue taunted activists, yelling that they were missing in action when the Bush administration added to the nation’s debt. Other hecklers urged Tea Party activists to go home.

At the rally, the mention of top Democrats including President Barack Obama and House Speaker Nancy Pelosi prompted loud booing from the mostly white, middle-aged crowd.

Tea Party activists gather in Washington

Meek gets a hand from pal Clinton

(CNN) — It’s been a long time since U.S. Rep. Kendrick Meek and former President Clinton met at the Suwanee Swifty store in Tallahassee, Florida.

Clinton, during his 1992 presidential bid, needed to make a stop for deodorant after landing at the airport. Meek, then a state trooper, was assigned to Clinton’s detail and accompanied the Arkansas governor.

It’s a visit both would remember for a long time — and something that would solidify a friendship lasting nearly two decades.

“We stopped at the Suwanee Swifty on Lake Bradford Road, where then-Gov. Clinton picked up some underarm deodorant roll-on. And he commenced putting it on in front of the Suwanee Swifty. As the protector of the governor, I didn’t want him to go down putting on roll-on, but we bonded through the process,” Meek recently told reporters.

A year later, Clinton, now president, was in Miami for an event at a hotel, and Meek, still a state trooper, was again part of Clinton’s security detail. As the two were walking, the president turned around to Meek and made a comment along the lines of “We’re a long ways away from Suwanee Swifty,” said Adam Sharon, Meek’s campaign communications director.

“I think that really just stood out for him as being a remarkable memory — that President Clinton in all that he had gone through that year to become president — remembers a moment in time from a year prior with Kendrick, who was a state trooper at the time,” Sharon said.

Meek, 44, now faces a tough battle to become Florida’s next senator. The Democrat, first elected to Congress in 2002, faces off against Gov. Charlie Crist, an independent, and Republican Marco Rubio.

When I first met Kendrick Meek, I knew he had the potential to become a strong leader and a fine public servant.
–Former President Clinton

The congressman has received overwhelming support from Clinton on the campaign trail and at fundraisers before the August 24 Democratic primary. Meek squared off against billionaire Jeff Greene and won the race by double digits.

Clinton has made nine appearances for Meek. On Tuesday, the ex-president headlined a fundraiser that raked in $175,000, according to the campaign.

Clinton repeatedly has heaped praised on Meek, who represents the 17th Congressional District in South Florida.

“Almost 20 years ago, when I first met Kendrick Meek, I knew he had the potential to become a strong leader and a fine public servant,” Clinton said in a statement on Meek’s election website. “Kendrick has spent the last two decades faithfully serving the people of Florida, staying true to his core beliefs and giving everything he has to improving the lives of others.”

At a campaign event in Delray Beach in mid-August, Clinton said flat-out, “I love Kendrick Meek,” adding that “I also believe in my heart that he should be the next United States senator from Florida.”

And part of that love seems to stem from their commitment to Haiti.

Meek has been a vocal advocate on issues affecting the struggling nation. The former president’s affection for the nation and its people goes back to his honeymoon spent in the country and to his recent work there helping earthquake victims.

“There are many ways that they have come together. Obviously Florida is a critical state for any election and politics in general — but Haiti as well,” said Sharon, the campaign communications director. “Kendrick has always stood out as a leader on issues affecting the Haitian-American community and the nation of Haiti. Obviously, President Clinton has had a very long and deep tie to that nation and now in many ways more than ever.”

And then there is the relationship that further developed during the 2008 presidential election.

Kendrick spent months with the ex-president on the campaign trail in support of Hillary Clinton’s presidential bid.

The congressman said at the time that she was the Democratic candidate with the “perfect blend of leadership, talent and intellect to lead our nation in a new direction,” according to a Clinton campaign press release. He added that it was his “honor” to endorse her to become the next president.

Meek also was a senior adviser to the campaign.

His ringing endorsement and campaign help was certainly not lost on Clinton’s husband, a man known for cherishing loyalty among his ranks.

“Often on campaigns, that’s where relationships are only further cemented, and the ties become that much stronger,” Sharon said. “In all sorts of ways he has shown his support of Kendrick, and in large part it’s due to a friendship that is long-lasting, stretching back now almost two decades when both men were at different stages in their lives.”

Meek gets a hand from pal Clinton

Obama in Ohio to push economic plan

Washington (CNN) — As President Obama heads to Cleveland, Ohio on Wednesday to roll out a set of comprehensive proposals aimed at fixing the ailing U.S. economy, top aides are knocking down suggestions that politics and the midterms are driving this effort.

“We are not calibrating these decisions based on a political calendar,” said a senior administration who briefed reporters ahead of the president’s speech. “We are trying to make decisions that are going to build a stronger economy for this country over the long run.”

In Ohio — a state especially hard hit by a slumping economy — Obama will propose $200 billion in tax cuts for businesses to purchase new equipment, and write off 100 percent of their new investments through the end of 2011, according to another senior administration official. The White House said 1.5 million companies stand to take advantage of the incentives.

“The economic team thinks this is a very high bang-for-the-buck way to get businesses off the sidelines, get them investing, get them creating jobs,” said the official.

In his Cleveland speech, Obama also will highlight his $50 billion proposal for infrastructure investment announced Monday, the officials said, and also $100 billion to permanently extend tax credits to businesses for research and development.

The officials framed the proposals as long-term fixes, with some short-term benefits.

The officials emphasized that the president’s remarks will extend beyond just tax cuts and billions of dollars in new spending.

“He’ll also be talking about where the economy has been, where we are now and where we’re headed,” said one top aide.

Video: Caught off guard

Even as critics argue that the president dragged his feet in rolling out these proposals, the officials were quick to defend the administration’s efforts. One said that Obama had been focused on the economy from the very beginning of his term, and that this latest push fits into the overall economic recovery plan.

The president’s message may bring hope to some Americans desperate for help, but Congress holds the keys, and it seems unlikely than anything will get done before the critical midterm elections.

One thing the nation won’t hear the president say Wednesday is that his proposals equal a second stimulus.

“We’re not thinking of it as a single legislative package,” said one of the officials who briefed reporters. “We’re thinking of it as a set of proposals to add to the other proposals the president is continuing to do.”

Obama in Ohio to push economic plan

Rubio: ‘I represent the things I stand for’

Miami, Florida (CNN) — For Marco Rubio, life was simpler when it was tea time all the time.

When he was gunning for the Republican nomination for the U.S. Senate in Florida, the former speaker of the Florida House of Representatives aggressively courted the state’s conservative Tea Party activists. That strategy worked. Rubio was suddenly a Tea Party favorite. His stunning rise in the polls forced Florida’s more moderate governor, Charlie Crist, to bolt the GOP primary to run as an independent.

But the race is now more complicated, with Rubio competing in a three-way battle royal against both Crist and the Democratic nominee, South Florida Rep. Kendrick Meek.

Rubio’s grass-roots campaign has put together a team of high-powered Washington and Texas-based GOP consultants. Over the summer, this son of Cuban exiles distanced himself from Tea Partiers on one of the conservative movement’s key issues, Arizona’s tough anti-illegal immigration law.

“The original law allowed for racial profiling. I don’t think they intended that. I don’t believe they did. But the original language in that law allowed for racial and ethnic profiling. And they changed that, to their credit, a week later. They passed a bill that changed that,” Rubio said.

Still, Rubio doesn’t want even the amended Arizona legislation to become the law of the land. “I don’t think the Arizona bill should serve as a model for the rest of the country,” he added.

Video: Marco Rubio’s changing message?

In an interview with CNN, Rubio blamed both parties for the nation’s problems and said he plans to be his own man if elected to the Senate. “I represent the things I stand for,” Rubio said.

Tea Party activists in Florida still support Rubio. But one of the movement’s leaders, South Florida Tea Party Chairman Everett Wilkinson, says he will be watching Rubio’s moves closely. “When you send a politician to Washington, you’re always worried whether you’re going to get the same guy back,” Wilkinson said.

One of the biggest worries among Tea Partiers is that Rubio will be another Scott Brown. The Massachusetts Republican had the backing of the Tea Party in his race to replace the late Sen. Ted Kennedy. But as a senator, Brown has shown his own independent streak and has voted on occasion with the Democrats. Not to fear, says Rubio, who is set to speak at a Tea Party rally in Florida later this month.

But the 39-year-old Republican nominee has good reason to consider a move to the political middle in this swing state. Crist’s new ads tout the governor as a fresh independent voice, forcing both Rubio and Meek to defend their respective political bases.

That’s created a fascinating sideshow in this three-ring political circus: an alliance of sorts between the Tea Party-backed Rubio and Meek. Nearly every day, both the Rubio and Meek campaigns send out e-mails blasting Crist. One of Meek’s e-mails showcases a recent newspaper editorial in Florida that slammed Crist as a “campaign chameleon.”

“Charlie Crist is trying to be indefinable in this race. And that has an expiration date on it. And that date has come and passed,” Meek said in an interview with CNN. Crist declined to be interviewed for this story.

“I think people deserve to know what the next U.S. senator from Florida is going to be about,” Rubio said. “The last thing we need in Florida is a political opportunist.”

Rubio: ‘I represent the things I stand for’

Obama’s economic push: Too little, too late?

(CNN) — President Barack Obama is rushing to roll out a new economic plan this week, but his fellow Democrats are confronting a difficult question: Is it too little, too late?

On one hand, Obama used a Labor Day speech in Milwaukee, Wisconsin, to suggest he wasn’t rattled about the economic crisis that might wipe out Democratic majorities in the House and Senate in less than two months.

“Now, the plain truth is, there’s no silver bullet or quick fix to the problem,” he said.

But on the other hand, Obama certainly sounded like a president trying to use the roll-out of his new plan to convince voters he’s all over the problem.

“I’m going to keep fighting, every single day, to turn this economy around; to put our people back to work; to renew the American dream for your families and for future generations,” Obama said.

Video: ‘They talk about me like a dog’

Video: Reaction to Obama’s speech

There’s certainly urgency to the situation because panic is starting to set in privately among some Democratic strategists if the American people don’t see economic improvement by November.

So in Milwaukee, Obama unveiled a $50 billion infrastructure plan to try and create jobs over the long-term by rebuilding 150,000 miles of roads, 4,000 miles of rail, and 150 miles of airport runways.

Then on Wednesday in Cleveland, according to an administration official, the president will announce a $100 billion plan to permanently extend the tax credit for research and development, hoping to spur companies to invest in their businesses by buying more equipment and hiring more workers.

But the fact is it’s unlikely that Congress will pass either proposal in the narrow window of a few weeks that lawmakers will be working this fall. And even if Congress miraculously came together to pass these initiatives, they would not have much of any impact this year anyway.

On a conference call with reporters on Monday, a senior administration official acknowledged that the infrastructure package will not add any new jobs until at least 2011.

“This is not a stimulus, immediate-jobs plan,” one senior official said. “This is a six-year reauthorization (of transportation projects) that is front-loaded” with money to try and spark the economy once Congress passes it.

But the president seemed to be promising the opposite in Milwaukee in terms of impact, perhaps raising expectations too high.

“All of this will not only create jobs now, but will make our economy run better over the long haul,” Obama said, according to his prepared remarks. “It’s a plan that history tells us can and should attract bipartisan support. It’s a plan that says even in the still-smoldering aftermath of the worst recession in our lifetimes, America can act to shape our own destiny, to move this country forward, to leave our children something better — something lasting.”

The sudden flurry of activity has led Republicans like Sen. John McCain, R-Arizona, to charge the president is “just flailing around” and trying to show a lot of activity on the eve of the midterm elections to try and bail out Democrats.

“We always like to see deathbed conversions,” McCain said on “Fox News Sunday” about Obama’s latest economic plan. “The fact is, if we’d have done this kind of thing nearly a couple of years ago, we’d be in better shape.”

White House officials completely reject the notion that they’ve had any sort of conversion or are “flailing around” for answers, pointing out there has been a heavy focus on turning around the economy with passage of the $787 billion economic stimulus plan within the first 100 days of the new administration.

“I would say within a month of President Obama coming into office, he signed the largest increase in infrastructure since President Eisenhower established the interstate highway system,” said a senior administration official. “The Secretary of Transportation and the Vice President have all been working tirelessly to make sure we are investing that money quickly and wisely.”

And in fairness to the White House, there have been reports conducted by nonpartisan officials like the Congressional Budget Office, as well as private economists outside the administration, suggesting the Recovery Act has saved or created 3.3 million jobs over the last year and a half.

The problem for the president is due in part to the high expectations set by the White House itself, which originally billed the stimulus as something that would jolt the economy, which didn’t quite pan out. Then they talked about giving the stimulus more time because it was always intended to be paid out over two years, and they decided to bill July and August as “Recovery Summer” to suggest the impact was finally starting to reach real people.

But the latest CNN/Opinion Research Corporation Poll suggests the American people are still just not feeling any sort of recovery. When asked about economic conditions today, 81 percent said the conditions are “poor” while only 18 percent said they’re “good” at this point.

Just as problematic is the fact that when asked how the current economic conditions compare to two years ago — before the stimulus package was passed — 49 percent said it’s “as bad or worse,” while 18 percent said it’s “better now but will get worse” in the future. Only 32 percent of respondents said that when compared to two years ago, the economy is “better now and will stay that way.”

That’s why when the president talks this week about the targeted tax cut as well as infrastructure spending — two key ingredients of the recovery plan last year — some Americans may feel like they’ve heard the same sales pitch before and the original didn’t quite work out as advertised.

The other challenge for the president is the fact that Americans have also heard him say many times before that he’s “focusing on the economy” — only to see him spend months and months on health care reform earlier in his presidency. And then after health care passed, the promises of a “hard pivot” back to jobs have only been eclipsed time and again by big issues like last week’s big Iraq speech from the Oval Office and the push for Mideast peace.

To be sure, some of the criticism of the president’s focus on foreign policy has been ridiculous. After all, he’s the commander-in-chief, not the economist-in-chief, so it’s sort of absurd to suggest that he should not have spent time thanking U.S. troops last week and talking directly to the American people about an important turning point to the mission in Iraq.

Likewise, Obama would have been derelict in his duty if he had ignored an historic opportunity to try and forge Mideast peace by saying he wanted to spend more time on the domestic economy. For the first time in nearly two years, Israeli and Palestinian leaders were willing to sit down for direct talks, so this was a rare opportunity for the American president to try and push it along. The peace initiative may ultimately fail, but he at least has to try.

But there have also been times when the president has waded into controversies, like the mosque issue in New York City, that have only pulled him off his message on jobs. And despite the bad news for Obama in CNN’s latest poll, there’s also a surprising revelation that suggests there’s still a chance the President could turn this election year narrative around.

The poll shows that more Americans hold the Republicans responsible for the economic mess than the Democrats, with 44 percent blaming the GOP and 35 percent picking the Democrats. And when the name of former President George W. Bush is added to the conversation, the number who blame the Republicans rises to 53 percent, with just a third of respondents saying Obama and his party are at fault.

Those numbers explain why Democrats will be mentioning the “Bush” name every chance they can get in the final two months leading up to the election. But the numbers also raise a question: Why haven’t the Democrats been able to do a better job of making the case for their own policies to save the economy?

On the morning after the election, Democratic insiders at the White House and on Capitol Hill may be wondering to themselves about an historic missed opportunity.

Obama’s economic push: Too little, too late?

Settlements remain obstacle in talks

Washington (CNN) — After two days of meetings and talks led by President Barack Obama and Secretary of State Hillary Clinton, Israeli and Palestinian leaders leave Washington deadlocked over the contentious issue of Israeli settlements.

Israeli Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas met alone behind closed doors for more than an hour and a half Thursday in a State Department room just outside Clinton’s office. The one-on-one meeting followed their on-camera pledges to move the peace process forward and their hardy handshake with Clinton in the middle.

But several diplomatic sources involved in the summit said the two leaders emerged from their meeting in a stalemate over whether Israeli settlements should continue.

The two leaders met with Clinton to give a readout of their meeting.

According to Fadi Elsalameen, who accompanied Abbas, the two leaders were very blunt about their opposing views.

Video: Mitchell: ‘Two states, two peoples’

Video: Aide: Obama encouraged by talks

Netanyahu is under pressure from the Palestinians and the Obama administration to extend a 10-month moratorium on building Israeli settlements in the disputed West Bank territory. That moratorium is set to expire September 26. Netanyahu’s conservative coalition government wants the Israeli prime minister to end the moratorium.

Elsalameen said that during the leaders’ private discussion, Abbas asked Netanyahu to extend the settlement freeze.

Netanyahu reportedly said, “I cannot extend.”

Elsalameen says Abbas responded, “Then I cannot continue.”

Before the summit even began, Abbas had threatened to abandon final status talks if Netanyahu allowed Israeli settlements to go forward. The Palestinian leader is trying to show he’ll keep his word.

Elsalameen said Clinton was asked about what would happen if Israel continued to expand the controversial Jewish settlements. Elsalameen said Clinton responded, as Obama had publicly stated, “Then all bets are off.”

Despite the standoff between the Palestinian and Israeli leadership, Elsalameen said that starting Sunday, their chief negotiators will meet on a daily basis to try to entertain compromises.

According to U.S., Israeli and Palestinian officials, the hope is that during those talks, some trust and confidence will be developed, and some of the other issues will be settled, possibly making it easier to find a formula for extending the moratorium.

The issue could then be discussed when Netanyahu and Abbas meet again in Egypt on September 14 and 15.

Both sides, and the Americans, fully expect some formula to be found at the last minute to extend the moratorium, the officials said. Obama told the leaders not to ruin this opportunity, according to the sources, and to make sure the 26th of September goes by quietly without incident

While nothing was agreed to, officials from both sides said the tone of this week’s talks was fairly decent, and they expressed cautious optimism. Netanyahu was apparently in a good mood after the meetings, and Abbas, who was nervous and tense the night before the talks, seemed to come away from them in a better mood. He didn’t feel pressured as he has been recently and was appearing to aides to be a little more relaxed and confident, they said.

Elsalameen said Abbas would be visiting Libya and Tunisia to drum up support for the Palestinian people.

CNN Senior State Department Producer Elise Labott contributed to this report.

Settlements remain obstacle in talks

Mideast leaders call for end to violence

Washington (CNN) — Direct peace talks between Israelis and Palestinians will start Thursday as President Obama urged both sides to come up with a peaceful solution to the long-running Mideast conflict.

U.S. Secretary of State Hillary Clinton is set to play the main role in the talks by hosting a meeting Thursday at the State Department with Israeli Prime Minister Benjamin Netanyahu and Palestinian leader Mahmoud Abbas.

The two sides will be relaunching talks that have been stalled for a year and a half.

On the eve of the talks, Obama held a working dinner with Abbas, Netanyahu, Egyptian President Hosni Mubarak and Jordan’s King Abdullah II.

“I am hopeful — cautiously hopeful, but hopeful — that we can achieve the goal that all four of these leaders articulated,” Obama said before dinner.

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Clinton and Middle East Quartet Representative Tony Blair also attended the dinner. The Quartet consists of the United States, Russia, the United Nations and the European Union.

Netanyahu and Abbas reiterated their goal to come up with a solution and condemned attacks against the Israelis in recent days.

“We don’t seek a brief interlude between two wars, we don’t seek a temporary respite between outbursts of terror,” Netanyahu said. “We seek a peace that will end the conflict between us once and for all… for our generation, our children’s generation and the next.”

Abbas said it was time to end the bloodshed from Israelis and Palestinians.

“We want peace between the two countries … let us sign a formal agreement for peace and put an end to this long period of suffering forever,” he said.

As the talks begin, other issues loom. One immediate threat is the September 26 expiration of Israel’s 10-month freeze on settlement construction in the West Bank.

Another roadblock is the Palestinian view that any two-state solution must include a handover of all the land Israel captured in the 1967 war, along with East Jerusalem as the Palestinian capital.

While Netanyahu has expressed openness about a Palestinian state, he also has strong opposition to a Palestinian takeover of East Jerusalem.

Hamas’ control of Gaza also remains a “major problem,” Chief Palestinian negotiator Saeb Erakat said.

While Gaza is generally considered to be part of any future Palestinian state, Hamas has refused to recognize Israel’s right to exist and is not a part of the talks.

Leaders of Hamas are frequently in conflict with the more moderate Abbas and his Fatah organization, which has the upper hand in the West Bank.

With the U.S. war in Iraq drawing to a close, the Middle East has moved front and center for administration officials.

In earlier remarks from the White House Rose Garden, Obama said that “this moment of opportunity may not soon come again.” However, he also pointed to challenges ahead.

“We are under no illusions,” he said. “Passions run deep … there’s a reason that the two-state solution has eluded previous generations — this is extraordinarily complex and extraordinarily difficult.”

Several top officials close to the negotiations told CNN that it is hard to be optimistic about a peace deal at the moment. They downplayed expectations, saying that nobody directly involved in the talks expects a deal to be reached this week. But simply resuming talks was a critical step, and a comprehensive Middle East peace deal has been one of Obama’s top foreign policy goals, they said.

CNN’s Ed Henry, Alan Silverleib, Hala Gorani and David Molko contributed to this report

Mideast leaders call for end to violence

Biden marks transfer of U.S. command in Iraq

(CNN) — U.S. Vice President Joe Biden and Defense Secretary Robert Gates helped usher in the next chapter for the United States in Iraq on Wednesday, presiding over a ceremony launching a new military operation designed to train, assist and advise the Iraqis.

The ceremony, held at Al Faw Palace in Baghdad, marked the conclusion of the U.S. combat mission dubbed Operation Iraqi Freedom and the transfer to the assistance mission, named Operation New Dawn.

Army Gen. Lloyd J. Austin III replaced Gen. Raymond T. Odierno as commander of U.S. Forces-Iraq in the changeover, held at one of the many palaces of late Iraqi leader Saddam Hussein — whose regime was ousted from power in the U.S.-led invasion of Iraq in 2003.

Biden said Operation Iraqi Freedom is over, but promised that “American engagement with Iraq will continue” with the new stability mission.

“This change of mission, to state the obvious, would never have been possible without the resolve and tremendous sacrifice and competence of our military — the finest, if our Iraqi friends will forgive us, the finest fighting force in the world, and I would argue the finest fighting force that ever has existed,” Biden said.

He acknowledged the pain Iraqis endured during the long war, saying tens of thousands of troops and civilians died, and many more were wounded and displaced.

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However, he said, “I believe that their darkest days are now behind them.”

Noting the divided opinion toward the war in the United States, he said people from both parties had always backed the troops for their “extraordinary service” after “a high-speed invasion that toppled a tyrant became a grinding struggle against violent extremists.”

“Our fighting men and women were given a mission in Iraq that was as complicated as any in our history, an assignment that taught us that war is the realm of uncertainty,” he said. “Troops steeped in military doctrine were asked to deal with challenges ranging from electricity to unemployment, currency exchange to trash collection.”

The vice president also praised the new electoral system in Iraq, urging political parties there to settle their differences and form a government soon.

“Iraqis have cast their lot as well as their ballots for a better future,” he said.

Biden highlighted Gates’ contributions, saying the defense secretary’s decision to serve under both Republican and Democratic administrations during the war is a testament to his patriotism.

Odierno, who said Iraqi security forces are ready to take the lead there, recalled the wartime period as one of Iraqi heroism.

“This period in Iraq’s history will probably be remembered for sacrifice, resiliency and change. However, I remember it as a time in which the Iraqi people stood up against tyranny, terrorism and extremism, and decided to determine their own destiny, as a people and as a democratic state,” he said.

As Biden did, Odierno urged Iraqi political blocs to form a government, which has yet to be established since elections six months ago.

“It is time for Iraq to move forward,” Odierno said.

Odierno said a democratic Iraq “can become an engine for peace and stability” in the Middle East.

“We can no longer dwell on our past accomplishments, but must remain focused on the tremendous opportunity at hand. Iraq has always played a vital role in this uncertain part of the globe,” he said.

Austin said Iraq still faces hostile threats from insurgents working to undermine the country. But he said that “the past few years in Iraq have been marked by steady progress” and he envisions a “stable, secure and unified Iraq.”

“Operation New Dawn marks the next phase of an enduring relationship” between the United States and Iraq, he said.

While the U.S. combat mission is ending, roughly 50,000 American troops will remain in the country until the end of 2011 for the assistance mission.

When asked Wednesday if the United States is still at war in Iraq, Gates responded, “No, we’re not.” Gates added it is up to historians to determine whether the war was worth it.

Along with U.S. political and military dignitaries, Iraqi officials — including Interior Minister Jawad al-Bolani, Defense Minister Mohammed Abdul Qader al-Obeidi and the Kurdish region’s Prime Minister Barham Saleh — attended the ceremony.

The U.S. combat mission in Iraq officially ended at 5 p.m. ET Tuesday. The drawdown and end to the U.S. combat phase marks a new page in what has been a controversial seven-year conflict. Weapons of mass destruction, a major justification by the Bush administration for going to war, were never found. Saddam Hussein was toppled, along with his massive Baghdad statue, but sectarian violence soon erupted.

On Tuesday night, U.S. President Barack Obama addressed Americans about the transition in a televised speech.

“The United States has paid a huge price to put the future of Iraq in the hands of its people,” Obama said from the Oval Office. “We have sent our young men and women to make enormous sacrifices in Iraq, and spent vast resources abroad at a time of tight budgets at home. We have persevered because of a belief we share with the Iraqi people — a belief that out of the ashes of war, a new beginning could be born in this cradle of civilization.”

The war in Iraq has claimed the lives of more than 4,400 U.S. troops.

Obama said he was “awed” by the sacrifices of service members and their families and that the U.S. has met its responsibility.

“Operation Iraqi Freedom is over, and the Iraqi people now have lead responsibility for the security of their country,” Obama said. “We have removed nearly 100,000 U.S. troops from Iraq. We have closed or transferred hundreds of bases to the Iraqis. And we have moved millions of pieces of equipment out of Iraq.”

Before Obama’s speech, some Republicans had urged him to acknowledge that the 2007 U.S. troop surge in Iraq ordered by then-President George W. Bush had worked. Obama, as a U.S. senator and candidate for the presidency, had opposed it.

Obama, who spoke with Bush in a phone call earlier in the day, did not mention the former president’s role in the surge.

Meanwhile, Senate Minority Leader Mitch McConnell, R-Kentucky, delivered a speech Tuesday suggesting Bush deserves more credit for reaching this milestone.

“You might recall that the surge wasn’t very popular when it was announced,” McConnell said. “You might also recall that one of its biggest critics was the current president. So it makes it easier to talk about fulfilling a campaign promise to wind down our operations in Iraq when the previous administration signs the security agreement with Iraq to end our overall presence there.”

Obama said the most urgent matter now is restoring the economy and “putting millions of Americans who have who have lost their jobs back to work.”

To strengthen the middle class, he said, “we must give all our children the education they deserve, and all our workers the skills that they need to compete in a global economy.”

Obama’s emphasis on the economy appears to dovetail with the mood of the American public.

In a CNN/Opinion Research Corp. poll earlier this month, 56 percent of respondents said the economy would be extremely important to their vote for Congress this year. Fewer than four in 10 said that the wars in Iraq or Afghanistan were extremely important to them.

CNN’s Ed Henry, Dan Lothian, Dana Bash, Jason Hanna and Alan Silverleib contributed to this report.

Biden marks transfer of U.S. command in Iraq