One of Barack Obama’s finest moments as President came this past September, when he gave a speech to Congress urging passage of the health-care reform bill. In his closing remarks, he invoked the late Sen. Ted Kennedy, and what Kennedy had written him in his final days: “What we face is above all a moral issue; at stake are not just the details of policy, but fundamental principles of social justice and the character of our country.” Those words resonated with Obama. “I’ve thought about that phrase quite a bit in recent days – the character of our country,” he told the country that night.

Those same words stung with relevance this weekend. Overshadowed by the landmark repeal of the military’s “Don’t Ask, Don’t Tell” policy, a triumph of social justice, was a cruel development: the Senate’s failure to break the filibuster to pass the DREAM Act.

In more reasonable days, the DREAM Act would have been a no-brainer. The bill paves a path to citizenship for young undocumented immigrants who were brought to the U.S. by their parents. It would grant permanent residency status to immigrants who graduate from high school and complete two years of college or enter the military. In other words, young men and women who were brought to this country illegally by their parents and who want to become more integrated into our national life would finally have the means to do so.

A good idea, and a bipartisan one too – once upon a time. In a period when our nation is in need of as many achievers and public servants it can get its arms around, the DREAM Act would seem to be a common-sense solution (not to mention a deficit-reducing one, as the CBO found).

But those days are long gone, and when the vote to cut off debate came up, the bill fell five short of 60. Three Republicans – Richard Lugar, Robert Bennett, and Lisa Murkowski – voted in favor, while five Democrats voted against. All this despite the fact that, under the Obama administration, there have been a record number of deportations, part of Obama’s effort to convince the bill’s holdouts that it is serious on enforcement.

The pictures that accompanied the news stories of the bill’s failure tell the story. Here’s how the Times described the scene:

Young Hispanic men and women filled the spectator galleries of the Senate, many of them wearing graduation caps and tassels in a symbol of their support for the bill. They held hands in a prayerful gesture as the clerk called the roll and many looked stricken as its defeat was announced.

For those young men and women, the rebuff must have been unfathomable: Why would this country explicitly deny them the opportunity to be productive contributors to our national life?

That the DREAM Act has gone from a pragmatic, consensus policy to anathema to not just the right but even a handful of Democrats speaks to a worrisome shift in American attitudes. Demagoguery is rife; resentments are in full bloom. It makes one worry for the character of our country.