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I have been as outraged at the behavior of the Clinton campaign as anyone and for quite some time. But even I have to acknowledge that the best choice Obama could make for Veep is Hillary, and it's not close. Here are my 10+ reasons why-
1) Republicans have spent the last few months glorying in the split amongst Democrats, and very much talking up Hillary Clinton. When they see all that division go up in vapor instantaneously when Hillary's name is announced, and their own would-be attacks on her blunted by their own prior praise, it will be demoralizing (not to mention rudely bring home the fact that their party is the one divided).
2) The Republicans want this campaign to be about Obama's ethnic/oriental/foreignness. It is really their only hope of winning. Hillary's high profile- and no other VP candidate outside of Gore (who's NA) would match it- has the effect of deflecting this charge by taking a large part of the burden for the spotlight (and further weakness the effect of Obama's unsavory associations on the electorate). It brings familiarity where there the lack of it is more weakness than strength. How many people out there know who Strickland is?
3) Hillary has spent months and months criticizing Obama in very stark terms, crossing every Rubicon she could find about Wright, Ayers, etc.. This gives her- and I'm aware of the irony of this- much credibility when it comes to Obama. If she can embrace his candidacy its going to give doubtful Americans every reason to do so also.
4) It would heal the party's severe disunity, and especially given how close the primary was- it couldn't have been any closer really. And while I loathe the arguments that Obama hasn't won this fair and square- he unquestionably has- there's no doubt that if any runner up has earned the right to be on a ticket in history, it is Hillary.
5) Relatedly, it would boost the fund raising capacity of the combined ticket more than any other VP pick would
6) Hillary would instantaneously give Obama huge credibility amongst Jewish voters he needs to shore up PA and to make McCain at least play defense in Florida. Polling shows she also helps him in Ohio which he may not even need the way this is going.
7) Hillary would also give Obama a significant boost in credibility with the Latino community he very much needs to shore up New Mexico and make him stronger in Nevada
8) Hillary is undoubtedly tough, and not shy of attacks, which is the primary role for a VP in a campaign (whereas Wes Clark and Jim Webb are not cut out for this in the least). She'd have little trouble ripping into McCain where Obama doesn't seem in the least bit comfortable doing it.
9) Relatedly, one of the problems of attacking McCain is that you leave yourself open to patriotism charges, especially if the one doing the attacking hasn't served in the military. This charge would be largely blunted simply because Hillary is a woman and the culture does not evaluate women in the same way (it would likewise not be a problem for Webb or Clark, but, as stated, they're not remotely at home on the attack).
10) Hillary would clean the clocks of Romney or Crist or any other Republican stooge McCain goes with in the VP debates (while Obama beats up on McCain in the town halls). This is the bon mot.
+) It would bring Maureen Dowd's trite little world crashing down around her.
In summary, I think it's a clear winner from an electoral perspective. I don't' see how they don't win in November combined. I furthermore think it's a winner for the country once they're in office.
There are a few not inconsequential negatives, including their both (and especially Hillary) having to confront the charges they at each other during the primary, (e.g. they lose the ability to attack McCain on the gas tax, etc.), Hillary's potential Bill/Burkle/papers problems, etc., but I don't think those are very decisive, and I don't buy the argument that a women and black man ticket with the mandate to overturn Bush policies across the board does not constitute the Change ticket. The only real negative worth fearing is if somehow the mutual antipathy toward each other that was born and grew up during this campaign was not papered over. In that case though, they will have no one to blame but themselves.