In the Arena

Deficit Gimmick

At a crucial moment in the presidential campaign, Barack Obama chose not to pander by supporting a summer gas tax holiday that was supported by both Hillary Clinton and John McCain. This was good policy–we need to raise, not lower, the gasoline tax–and it turned out to be good politics: the public knew a gimmick when it saw one.

Now he’s proposing a freeze of non-defense discretionary spending for the three years after this one….and it sounds a lot like a gimmick to me. Now, it wouldn’t be a gimmick if the result was what Obama is striving for: cutbacks in ridiculous spending like farm subsidies. But as Ezra Klein points out, those subsidies persist because they have industrial strength lobbies. And if farm subsidies can’t be cut, something else will have to be for Obama to make his target. The programs with the least powerful lobbies are the one dedicated to helping poor people. You can see where this is going.

During the campaign, John McCain supported a discretionary spending freeze and Obama successfully derided it as using a sledgehammer instead of a scalpel. That still applies. If Obama wants to take on wasteful spending–in the defense budget and entitlements programs like Medicare as well, by the way–he’s doing the Lord’s work. When he frames it as a spending freeze–with no guarantee that good programs won’t get hurt–he’s floating a gimmick.

I know this idea was in the works long before the Massachusetts debacle, but it smells of desperation. The President needs to find ways to show his strength right now; this idea shows the opposite.

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  • centfan

    Joe, the great people of this land don’t know from subsidies… and besides that’s welfare for hard working white folk. They don’t know the percentage of GNP that goes into defense. They only know that Bin Laden would be conducting beheadings in the Superbowl stadium if it weren’t for Aegis Class cruisers. They don’t know that Medicare is going to cripple this country without healthcare reform. They only know that Grandma needs her thinking pills. School lunch programs are the only thing everyone (who’s anyone) agrees has to go.
    -
    The President has no hope of educating the masses. Maybe his only shot is to site so many controversial expenditures and the states and congressmen and governors who are propped up by them that he can create a fur ball that even the vaunted press won’t know how to spin.

  • afguy

    Sounds like a gimmick – probably because it is.
    .
    Someone once said that there really wasn’t a whole lot of difference in the two parties in Washington and I’m now seeing their point. I’m not ideological Dem or Rep. I have characteristics of both (and neither).
    .
    I will admit to voting for Obama because he had good-sounding policy proposals and I am willing to support him as long as he is making an attempt to lead. Now we’re seeing spin and political damage control, not real governance.
    .
    I sense Rahm’s fingers in this. There are just a lot of Washington insiders (both Den and Repub) who have worn out their welcome and need to leave. They seem to be more worried about just winning elections, rather than good governance.
    .
    Please don’t saddle me with the argument about how much better the Repubs could do it. They blew it big time over the past 8 years and I have zero faith in their solutions either. The solution is going to be much more complicated than tax cuts, unfettered free markets, then “a miracle happens” and jobs return. That’s what I hear right now on sources like CNBC.
    .
    Unfortunately, intelligent discussions or solutions are, for the most part, off the table for the time being.

  • formerlyjames

    Reminds you of the famous “read my lips” debacle, but on the hypocrisy scale, this would probably register higher.

  • rustyreturns

    I am glad that you point out Joe, that spending, especially discretionary spending is out of control. We need more exposure on this by the media.
    .
    But, you seemed to have left out the tiny little fact that spending overall was increased by Bush II, but Obama has increased that outrageous spending by Bush II by 12% more since taking office.
    .
    So where exactly are the “cuts” occurring? How much is really being “cut” or proposed to be cut?
    .
    I think you missed that part, as well as Ezra did too.
    .
    During the Bush II Administration the deficit was 5 trillion dollars. When Bush II left office in 2008, the deficit was 10 trillion dollars. After one year in office, Obama’s deficits have now reached 14.2 TRILLION dollars.
    .
    How much are the “cuts” again Joe Klein? Is it 15 or 16 billion dollars?
    .
    Fuzzy math revisits Washington.

  • ohiolib

    ……I thought this was the sort of stupid I voted against.

  • afguy

    formerlyjames,
    .
    Given how some of the “progressives” that were elected have now abandoned their elective positions, I wonder if you can take the utterings of ANY national politician at face value.
    .
    They seem to have compartmentalized their politics, ethics/morals and religion to the point that none really see a moral dilemma with saying one thing while on the campaign trail, another at church, and another after the election is over. Hypocrisy is a foreign concept to them because they’ve decided that, in pursuit of a noble (in their eyes) goal, all of the above are acceptable practices.

  • centfan

    And the effective solutions you all would get through Congress would be… … … crickets … … … ?
    -
    Don’t hold back. Every American is on board for the next fifteen minutes…

  • pintortwo

    Thank you, especially for pointing to Ezra for the inverse relation between lobby strength and subsidy wastefulness.
    .
    I found it interesting that you would mention defense spending and entitlement programs together (as “wasteful spending”). How very serious of you. However, you probably should discuss them independently.
    .
    Also, when it comes to reductions in discretionary spending, your peers will comfortably discuss entitlement programs, but almost never defense spending.

  • afguy

    …but almost never defense spending.
    .
    Good point. Typically, if it’s mentioned, a “wasteful program” is one that doesn’t benefit anyone in your area. DOD spending projects are so distributed any more that it’s almost impossible to find a locale that doesn’t benefit.
    .
    I also suspect that, if it was known, there are very large corporations that wouldn’t exist (General Dynamics comes to mind) if the DOD budget were cut very far.
    .
    Thar’s big bucks in bombing and killing your fellow man (or selling to others that do in your stead). Especially if you can do it to both sides in a conflict.

  • pierogielunaire

    I find myself wondering why Republicans are so frightened of their base that they cannot even criticize Limbaugh, and Democrats so despise their base that they will immediately throw them overboard in a vain effort to appease Teabaggery. Seeing the Dems cower in fear at the slightest hint of opposition is truly one of the saddest things I’ve witnessed since, well, the last time Dems cowered in fear at the slightest hint of opposition. All this time Republicans have been warning about how beneath the facade Obama is a Socialist/Muslim/Terrorist when it turns out that beneath the facade he is Alan Colmes. *Sigh*

  • michaelfury
  • allthingsinaname

    “non-defense discretionary spending”
    .
    A Republican code word for whatever they don’t like. Here I thought Obama was a Democrat. Instead we have to hear from McCain now, can Palin be far behind?
    .
    I can hardly wait tro see the out come. Obama can cut and run just like Palin. When is the book tour?

  • stuartzechman

    Joe Klein:
    .
    At this point, the most important question isn’t why the Administration is willing to say that the problem with the economy is “government spending”, it’s whether they believe that or not.
    .
    Is this yet another example of Third Way ideology run amok in government?
    .
    In New Democrats’ quest to drive the economy, should we be expecting “NATFA II” next, Joe Klein?

  • allthingsinaname

    “The President needs to find ways to show his strength right now”
    .
    Take a stand for something other than a Republican Policy. sigh

  • shepherdwong

    “At this point, the most important question isn’t why the Administration is willing to say that the problem with the economy is “government spending”, it’s whether they believe that or not.”
    .
    Actually, I think the most important question right now is whether the President believes in anything at all.

  • indianasteve

    Give the guy a break. This isn’t as laughable as mandating a $0.1 B saving by his cabinet after signing a $0.8 T stimulus bill.
    Why don’t you ask him what the results were of that $0.1 B program? All I saw was a $1 M photo op flight of Air Force 1 over NYC. Could have been done for $10 k by a PhotoShop guru.
    Nobody in the White House should have a calculator – their numeracy skills are less than zero – ie. what they think they know is in fact wrong.

  • bacotawordpress

    I’m baffled. I thought Obama had been trying to follow sound economic policy, but doesn’t a spending cut during a recession go *against* standard economics? Never mind a *freeze*. If he thinks the Tea Party folks are upset about the budget deficit, where does he think they were hiding during the Bush administration?

    I’ve been an Obama fan all year, but I really can’t get my head around this.

  • spob

    Obama promised to go after Medicaid/Medicare waste, fraud and abuse. Get hot, Barack.

  • Tom in The Swamp

    This pre-announcement (spelled out on a conference call late yesterday afternoon) was just about as stupid as it could possibly be.

    Not only does it contradict the Democrats’ message up to the previous week, it stepped on the administration’s own message of the day yesterday concerning the recommendations of Joe Biden’s Middle Class Task Force.

    Jared Bernstein was scheduled to talk to Rachel Maddow about those recommendations last night, and instead he took a beating over this stupid and trivial (in dollar amounts) “freeze”.

    I’m really getting tired of seeing the Obama administration stepping on its own d!ck like this.

  • kbanginmotown

    afguy: Is this necessarily a gimmick, or could it be part of a bigger plan to create a “poison pill” that the GOP can’t swallow?
    .
    For instance, if this “freeze” were tacked onto legislation expanding Medicare, Medicaid or SChIP, it could ultimately be a win for the Dems whether the bill passed or failed. This could help to divide the GOP and the TeaPartiers further…
    .
    Frankly, I think we’re all looking a bit too closely at the sausage machine right now. If he ain’t signed it, it ain’t law, and there’s a lot of sausage making left to go…

  • Tom in The Swamp

    The administration’s argument (not that I buy it completely) is that the mini-freeze, scheduled as it will be for FY 2011, will not start to take effect until the economy is already back in recovery.

    That seems a bit optimistic to me, and harks back to 1937. When Roosevelt made a similar mistake, he quickly reacted and undid much of it. Will Obama?

  • tharwatfawzi

    President Obama has every right, speaking on behalf of all Americans who are able to know the facts, to lead the fight against those with little respect for the American moral values. We all pray that these facts will be soon revealed to the public.

  • square1

    Is everyone in Indiana this stupid, or just you?

  • pintortwo

    DOD spending projects are so distributed any more that it’s almost impossible to find a locale that doesn’t benefit.
    .
    true afguy. By design. That’s pretty much what Eisenhower warned of (link).
    .
    The military needs to be able to protect us- that’s all it needs to do. It shouldn’t be burdened with concern for employment rates or act as a jobs program.
    .
    Besides, $1.4 billion bombers that can be downed by moisture don’t seem a cost effective way to create jobs (link).

  • stuartzechman

    This is from the Administration geniuses who predicted that the half-stimulus would have unemployment down below 8% by now…

  • stuartzechman

    It’s not hypocrisy when they do or say opposite things simultaneously.
    .
    It’s centrism.
    .
    It’s what New Democrat policy and politics are all about.
    .
    If you take Third Way proponents at their word, this is the kind of thing they believe in the most.
    .
    I’m not making this stuff up, Google “New Democrat Coalition” and “Third Way”.
    .
    Read what these idiots believe.

  • pintortwo

    here’s how it usually works…
    .
    We have “military spending — all of which is discretionary — accounts for over 50% of discretionary government spending” (link). But we can’t discuss it.
    .
    Joe, a member of relatively good standing, mentions the taboo (kudos are in order). However, in order to remain centerful, he must add entitlement programs- one from “each side”. But hey, it’s mentioned, we should be happy that we get this much- it’s the incremental steps Joe talks about.

  • stuartzechman

    I’m beginning to believe less and less that they’re playing 11 dimensional chess with the Republicans and winning, and more and more that they’re playing tic-tac-toe with themselves and losing.

  • http://swampland.blogs.time.com/2010/01/26/gimmick-or-no-obama-still-has-big-deficit-problems-and-a-dysfunctional-debate/ Gimmick or No, Obama Still Has Big Deficit Problems And A Dysfunctional Debate – Swampland – TIME.com

    [...] Swampland A blog about politics. Swampland Feed   Daily E-mail Updates   « PreviousDeficit Gimmick [...]

  • afguy

    Frankly, I think we’re all looking a bit too closely at the sausage machine right now. If he ain’t signed it, it ain’t law, and there’s a lot of sausage making left to go…
    .
    Unfortunately, if you take a dog turd (sorry) and drop it into a sausage making machine, what comes out may look like sausage but doesn’t smell or taste like it. And unfortunately, as time goes on, it’s increasingly harder to separate the original turd from the edible parts.
    .
    You can call the result “contaminated sausage” or a “semi-nutritious turd”, depending on how you want to present the result. Either way, the resulting product is going to make you ill and vomit (just maybe not as quickly as the undiluted turd would).

  • indylinda

    Sooooo, Joe, you know this freeze was in the works for a long time, since well before the MA special election, and you seemed to be praising the idea of a freeze on Charlie Rose’s show the other night, but now that a few other talking heads have decided it’s a gimmick, you have too? Give me a break.

  • afguy

    It’s not hypocrisy when they do or say opposite things simultaneously.
    .
    It’s centrism.
    .
    It’s what New Democrat policy and politics are all about.

    .
    stuart,
    .
    The Repubs have the same problem. Not sure what they call their version of simultaneous, conflicting realities.

  • kbanginmotown

    afguy: New Dem Brats…“Now with 20% fewer roach droppings than the other leading brands.”
    George Carlin would be proud!
    .
    I guess what I’m saying is that as long as the turd doesn’t get into the sausage, maybe it’s just in the kitchen to keep the flies away from the meat grinder…
    .
    stuart: Yeah, it sounded like 11-dimensional chess to me as well. I’m still hoping there’s a 12th dimension we don’t know about…

  • afguy

    I guess what I’m saying is that as long as the turd doesn’t get into the sausage, maybe it’s just in the kitchen to keep the flies away from the meat grinder…
    .
    My impression was that the plan was to drop the turds into the HCR mix, but hope that SOMEONE retrieved all of the pieces before the product was packaged and shipped, not just use it as fly-bait. That way the product quality would be ensured (and it wouldn’t piss off the flies).
    .
    No one counted on someone deciding that the presence of flies in and around the sausage process was actually a desirable situation.

  • cigarcamel

    That was hilarious, I enjoyed reading it.

  • stuartzechman

    Where’s Evan Bayh from, again?

  • stuartzechman

    When Republicans say they’re for cutting spending and small government, and then they enact Medicare Part D into law as soon as humanly possible (with the support of those centrists “deficit hawks”, BTW), then they’re just being hypocrites and frauds.
    .
    Centrist “deficit hawks” compromising with said Republicans is their whole ideological deal, since that shows how “pragmatic” they are…I didn’t say it was an intelligent way to think, I’m just saying that they’re following the perverse principles they have.

  • bogartshat

    “…those subsidies persist because they have industrial strength lobbies.”

    No, those subsidies persist because 99.9% of Congress is for sale to the highest bidder.

  • http://billy371.wordpress.com billy371

    Spending Freeze Gives Frostbite to Many Americans!
    Everyone from the President to the family down the street, maybe even your family, seems to have put themselves on a self imposed
    ‘spending freeze’ due to the weakened economy. If people are not working, they are not spending money, even for essentials like food,
    gas, utilities, daycare and clothing, can you believe this,find out more in this great article.
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  • http://billy371.wordpress.com billy371

    Spending Freeze Gives Frostbite to Many Americans!
    Everyone from the President to the family down the street, maybe even your family, seems to have put themselves on a self imposed
    ‘spending freeze’ due to the weakened economy. If people are not working, they are not spending money, even for essentials like food,
    gas, utilities, daycare and clothing, can you believe this,find out more in this great article.
    http://ketiva.com/Politics_and_Government/spending_freeze_gives_frostbite_to_many_americans.html

  • rustyreturns

    It’s ok indianasteve, when they have no defense, progressives’ attempts in defending their policies are simply to call you stupid.
    .
    Relish in the fact that the only stupidity is found within their own comments.
    .
    Ain’t that right stuart the suck up?

  • rustyreturns

    Bull-crap stuart. You keep on whinning about some mythical “centrism”. Nothing but pure bull crap.

    Everyone in America is now awake to the crap that Obambi and people like you spew out. Obambi is a liberal, a crap liberal President.
    .
    This is liberal policy, and you are a liberal. Face up to it, it’s all nothing but crap. Try as you may to attempt to distance yourself from the leadership in your Democrap Party, they are the same people that you are. People who do not have a clue.

  • http://shorthorse.wordpress.com shorthorse

    “we need to raise, not lower, the gasoline tax”
    That’s like saying we need less employment not more.

  • stuartzechman

    Why are you calling me a suck up, Rustydog?

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