Yet these successes seem big only in the context of diminished expectations. Even at year end, the serious battles were lost, not won. Stimulus claims aside, extending the Bush tax cuts binds the hands of the White House on the most important budget issues for the next two years and was also horrendous policy. Moreover, none of the lame-duck victories confront the most critical issue facing us: transforming our economy so it can create jobs, raise middle-class incomes, and compete in the long...