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Obama walks away from another centrist position: PAYGO and fiscal balance

Submitted by Soren Dayton on Thu, 10/16/2008 - 08:21
in

H/T to Matt Stoller for noting that Barack Obama abandoned another centrist position that he has been running on. No more PAYGO:

Tucked into tonight's debate was a little noticed statement from Obama about fiscal responsibility and what he'll have to cut.  He talked about how the country needs to live within its means and so he supports PAYGO, but importantly, also said we'll have to get back to that after we get through these rough economic times.  I don't have the exact quote but it's very good news that he supports a Keynesian stimulus, and hopefully he'll be able to bring the Blue Dogs along.  They want to renounce the stupid PAYGO rules, because making all policy revenue neutral prevents obviously good investment choices like bonding out government revenues to build mass transit, new energy systems, etc.

What other respnsible, centrist positions will Obama abandon? And are Republicans willing to fight to peel off Democratic Blue Dog votes to win a rules fight on PAYGO in a time of a trillion dollar deficit?

While it would seem disinegenuous, given previous objections to PAYGO that it prevented tax cuts. But tax cuts aren't exactly on the horizon. Matt gives us the schedule::

The first discussion of any import within the new Democratic caucus will take place on November 17, when the caucus decides the rules they will vote on in January.  Those rules may include PAYGO or they may not; hopefully if they do include PAGYO there will be exceptions for investment activities that will eventually produce revenue.

Republicans and responsible people (only partial overlap) have between November 17th and some time in early January.

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The real fear of the Neo-cons

Submitted by gunthestops on Thu, 10/16/2008 - 08:49.

 

Sir, I have a question for you; do you think that Obama’s leadership and economic plans will not work? Or do you fear it will work and bring about change and fairness that will debunk the failed policies of “supply side economics”. 
Starting with Reagan supply side economics have taken us from a $500 billion dollar national debt in 1980 to a 10 trillion national debt in 2008 up 1,900%. Bushes legacy will be that when he took over with a republican congress for 6 years will have increased the national debt by almost a 100% $5.5 trillion in 2000 to $10.3 trillion as of yesterday.   For FY 2008 we added just over $1 trillion to the national debt for the first time ever. Did you know that since the beginning of Oct this year the government has added $270 billion to the national debt in just the last 15 days and they have not spent a dime of the economic plan that has been developed in the last month.
The great fear of the of the extreme right is not that is not that they will loose election—it is that Obama could possibly bring about positive change and heal the wounds caused by the Bush administration. The real fear is that if the Obama administration is successful it will send the Neo-cons back into the gutter where they came from. The reality is, the extreme right would rather have a failed America then a failed ideology. I believe the Republican Party can and will be saved from the Neo-con who have hijacked the party for their own ends.            

 

The answer is "no"

Submitted by xc1148 on Thu, 10/16/2008 - 09:09.

"And are Republicans willing to fight to peel off Democratic Blue Dog votes to win a rules fight on PAYGO in a time of a trillion dollar deficit?"

No, they had their chance to be fiscally responsible (2000-2006) and failed. Spending cuts are necessary, but the truth is NO PRESIDENT OR CONGRESS has ever made government smaller. Ron Paul and Giuliani, I thought, had some good ideas on how to trim government spending but they weren't chosen to represent the party, with their views on the war in Iraq and abortion, respectively, disqualifying them from receiving the nomination.

Government will get smaller when politicians outline specific plans on where to cut, but specific spending cuts are never popular so I wouldn't hold my breath...

Don't forget, this isn't about deficits and spending, this is about power (for both parties). It is the time of "say anything to get elected" and until people stop pledging extreme loyalty to one party over the other, we will be stuck this way for a long time.

My sense is you are right about what the House GOP will do

Submitted by Soren Dayton on Thu, 10/16/2008 - 09:28.

 

But we can hope...

Remind me?

Submitted by gunthestops on Thu, 10/16/2008 - 09:48.

Remind me who suspended PAYGO?  (Republicans) --Taking massive tax cuts and piling up massive debt for future generations to pay, is the same as looting the treasury for your own personal gain.  Who does not like to get a tax cut?  But for "the love of God"  man up and pay the bills!!!  

Didn't I say that?

Submitted by Soren Dayton on Fri, 10/17/2008 - 15:25.

Or do you like to agree with a disagreeable tone for the sport?

This is not new at all

Submitted by Ironman on Thu, 10/16/2008 - 20:59.

February, 2008, New York Times

Closing Income Gap Tops Obama’s Agenda for Economic Change

http://www.nytimes.com/2008/02/02/us/politics/02obama.html?ex=1359694800&en=c661082c96edbee0&ei=5124&partner=permalink&exprod=permalink

August 2008, New York Times

During our conversation, Obama made it clear that he considered the deficit to be only one of the long-term problems requiring immediate attention, and he sounded more worried about the others, like global warming, health care and the economic hangover that could follow the housing bust. Tellingly, he said that while he admired what Clinton did, he might have been more open to Reich’s argument — even in 1993. “I still would have probably made a slightly different choice than Clinton did,” Obama said. “I probably wouldn’t have been as obsessed with deficit reduction.”

http://www.nytimes.com/2008/08/24/magazine/24Obamanomics-t.html?ex=1219896000&en=e69c9d2ff81fdf16&ei=5070

Folks, anyone who thought for a nanosecond Barack Obama cared about the budget deficit was either sound asleep or drinking his campaign Kool-Aid.