Dems Savoring Shake-up

After the surprise firing of Treasury Secretary Paul O'Neill and senior economic advisor Lawrence Lindsey, Democrats see opportunity knocking, according to CBS News correspondent Stephanie Lambidakis.

Democratic consultant Mark Mellman tells Lambidakis, "Now with the president admitting defeat on the economy, we may have a much more receptive audience to listen to what Democrats have to say about what our plans are to deal with the economy."

During the midterm election campaign , Democrats were unable to agree on an economic message, Lambidakis explains. And voters were more worried about the possibility of terrorism and war in Iraq. But Friday's news that the unemployment rate soared to an eight-year high could strengthen a theme Democrats have been pounding on all week.

Former President Clinton said Tuesday, "I think it's amazing that we have a situation here where we're not stimulating a distressed economy, and we're creating long-term fiscal irresponsibility."

Massachusetts Sen. John Kerry, a likely presidential candidate, hit even harder: "The new Bush tax cuts (which the president is said to be all but ready to unveil) are unfair, unaffordable and unquestionably ineffective in growing our economy."

Senate Democratic Leader Tom Daschle called the firings "an overdue admission by the Bush administration that its economic policies have failed."

Democrats still have to contend with the president's strong support for his handling of foreign affairs. And analysts say Democrats are widely perceived as being soft on national security.

Still, for the short term at least, the economy, not national security, is capturing the country's attention, Lambidakis points out. A lot is hanging on who the President chooses for his new economic team, she says: Republicans need to show they're in control; Democrats need to show they're not.

The Bush housecleaning, which began Election Night with the resignation of SEC chairman Harvey Pitt, reflects profound concerns that the sputtering economy could be a drag on the president's re-election campaign. Mr. Bush remembers all too well what happened a decade ago to his father, another popular wartime leader whose re-election hopes were derailed by a stumbling economy, reports CBS News correspondent John Roberts.

Following plans laid weeks ago, the president will quickly name successors and unveil the new tax-cut package, said advisers eager to portray the changes as a fresh start for the economy.

Prospects already making the rounds to replace O'Neill are Wall Street titan Charles Schwab, former House Ways and Means chairman Bill Archer, former Federal Reserve governor Wayne Angell and retiring Texas Sen. Phil Gramm, Roberts says.

Stephen Friedman, a member of the board of directors of Goldman Sachs, is the leading candidate to replace Lindsey. Another possibility is Glenn Hubbard, currently chair of the White House Council of Economic Advisers, Roberts adds.