Posts Tagged ‘Obama Administration’

NPR asks, “Who’s buying” the Recovery Summer tour?

Wednesday, July 28th, 2010

Today, NPR had a segment on the administration’s attempt to convince the American people that the $862 billion economic “stimulus” package has been beneficial.  As NPR reports, the media plan does not appear to be working. Despite a nationwide tour, and dozens of speeches from the president and other Washington officials, approval ratings for the “stimulus” spending bill remain low – as general frustration over Washington’s overspending continues to build.

Given the facts, Americans’ mood should come as no surprise (please see Public Notice’s recent op-ed on the issue). Here is excerpt from the NPR story:

So far this year, Obama has made more than a dozen trips on what the administration refers to as the “White House to Main Street Tour.” He generally tours a business that is adding jobs because of the economic Recovery Act. The speech is very similar from one stop to the next.

“We’ve aimed to grow our economy by harnessing the innovative spirit of the American people,” he said two weeks ago at the groundbreaking for an electric car battery plant in Holland, Mich. “Because we did, shovels will soon be moving earth, and trucks will soon be pouring concrete where we are standing.”

It is an overt sales pitch that Americans appear not to be buying. And there are those who believe that the president, like yesterday’s rock star, has been touring too long.

“Just saying it over and over again is not going to convince anybody that things are really happening,” says Ed Rollins, who was political director in the Reagan White House. “If I were running the political operation at this point in time, anytime I’m outside the White House, I’d be campaigning.”

There is a campaign element to many of these trips. The speeches tend to be in swing states.

“I think the president and his team have been road-testing themes for the midterm” on this economic tour, says former Democratic consultant Bob Shrum, who now teaches at New York University. “Getting a message through takes a long time, and developing that message can also take some time, so I think this is cumulative.”

He says the White House is trying to create a narrative, laying the foundation for when people begin to feel the recovery. That message may take hold when the unemployment rate drops — assuming the unemployment rate drops.

Deficit commission holds monthly meeting this morning

Wednesday, July 28th, 2010

Today the National Commission on Fiscal Responsibility and Reform holds its fourth monthly meeting.  The meeting is scheduled to begin at 9:30 A.M. and can be watched live here.

Stay tuned to our blog where, later today, we’ll post our weekly closer look at one of the deficit commission members.  This week: Rep. Paul Ryan.

Deficit Update Release

Friday, July 23rd, 2010

The Administration today released its update to the President’s annual budget proposal. The Mid-Session Review (MSR) doesn’t bring much good news for those worried about government overspending. Here are a few highlights:

According to today’s release, under current law, assuming Congress does not enact new fiscal policies, spending in fiscal year 2010 will be $3.547 trillion dollars (this is roughly the same as it was estimated to be in the Administration’s initial budget released in 2009). This would put spending at about $30 billion more than 2009 levels.

If Congress follows all of the President’s proposals, spending in 2010 would be $3.6 trillion – about $85 billion more than last year.

Just the Facts: Jacob Lew

Tuesday, July 13th, 2010

Nominee, Director, Office of Management & Budget

Biographical Information:

Full Name: Jacob “Jack” J. Lew

Date of Birth: August 29, 1955

Education: Harvard College (undergraduate), Georgetown University (law school)

Notable affiliations:

Council on Foreign Relations (current member)
National Academy of Social Insurance (current member)
Corporation for National and Community Service Board (former member)
Advisory Board for City Year New York (former co-chair)
Kaiser Family Foundation (former member)
Center on Budget and Policy Priorities (former member)
Brookings Institution Hamilton Project (former member)
Tobin Project (former member)

Professional Life:

1979 to 1987: Principal domestic policy advisor to former U.S. House Speaker Thomas “Tip” O’Neill (D-MA)

1988 to 1993: Partner, law firm of Van Ness, Feldman

1993-1994: Special Assistant to President Bill Clinton

In his role, Lew helped design the President’s Americorps Initiative

August 1995 to May, 1998: Deputy Director of the Office of Management & Budget

In this role, Lew helped negotiate the 1997 Balanced Budget Agreement between President Clinton and the Republican-led House and Senate.

July 1998 to January 2001: Director of the Office of Management & Budget

2001 to 2006: Executive vice president and Chief Operating Officer of New York University

June 2006 to January 2009: Chief Operating Officer of Citi Alternative Investments

January 2009 to Present: Deputy Secretary of State for Management & Resources

Jacob Lew to run OMB

Tuesday, July 13th, 2010

The White House announced today that Jacob Lew will replace Peter Orszag as the Director of the Office of Management and Budget (OMB).  Lew was appointed by President Obama as Deputy Secretary of State for Management and Resources and served as OMB director under President Clinton from 1998 and 2001.

Cramer sounds off on government overspending

Monday, July 12th, 2010

This morning Jim Cramer of CNBC’s “Mad Money” appeared on the Today Show to talk about the economy.  He spoke of a possible recovery and the consequences of government overspending.

“We don’t have enough money as a government to continue to spend a lot of money without raising taxes.  Raising taxes would send us into a double-dip (recession).  We’re starting to get clues the administration doesn’t want to do that.  That matters tremendously.”

Click here to watch the entire clip.

White House calls for ideas to SAVE money

Friday, July 9th, 2010

The White House announced yesterday the launch of its second annual SAVE (Saving American’s Value and Efficiency) award. The award asks federal government workers to submit their best money-saving ideas. The winner gets to meet with the President and his or her idea earns a spot in the Administration’s next budget.

The ideas are compiled on this website, where average Americans can weigh in. The White House also tracks ideas submitted last year that are being implemented.

These cuts and efficiencies will generally save thousands or millions of dollars each so they won’t go that far in tackling our $13 trillion debt (which is almost the size of our entire economy), but this is a good step in the right direction, nonetheless. And it mirrors the type of decisions families around America have to make when it comes to their own budgets.

Business leader says Washington is bad for business

Wednesday, June 23rd, 2010

Politicians and pundits often make grand claims about the effectiveness of their own economic policies and ideals. Too often, however, these claims don’t play out in the real world.

Recently, Verizon CEO, Ivan Seidenberg, shared his perspective on the real impact of Washington’s much-touted “growth” policies.

Below is an excerpt from a speech made by Seidenberg at the Business Roundtable:

My colleagues and I have worked closely with policy-makers across the political spectrum on matters from health care to trade and tax policy to energy and climate change. But frankly, we have become somewhat troubled by a growing disconnect between Washington and the business community that is harming our ability to expand the economy and grow private-sector jobs in the U.S. We see a host of laws, regulations and other policies being enacted that impose a government prescription of how individual industries ought to be structured, rather than produce an environment in which the private sector can innovate, invest and create jobs in this modern global economy.

In our judgment, we have reached a point where the negative effects of these policies are simply too significant to ignore.

In the search for short-term revenue fixes, we’re doing long-term damage to growth.

By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses.

Meanwhile, without a sufficiently comprehensive focus on growth and jobs, our unemployment rate continues to hover close to 10 percent. The CBO says debt will rise to 90 percent of G.D.P. in 10 years. And last month’s job report showed the private sector creating only 41,000 jobs, a figure the Economic Policy Institute says is ‘nothing closely resembling the job growth needed to dig us out of our very deep hole.’

So, from our perspective, it’s time to refocus public policy on creating the conditions that will drive private-sector jobs.


Today’s deficit commission preview

Wednesday, April 28th, 2010

As we wrote Monday, President Obama’s National Commission on Fiscal Responsibility & Reform will not release its recommendations until December. However, a good preview of the Commission’s likely findings will be on display today. The Peter G. Peterson Foundation is hosting a daylong summit that will feature members of the commission plus former President Bill Clinton, OMB director Peter Orszag, former Federal Reserve Chairman Alan Greenspan and others.

The purpose of the event is to “explore the extent and depth of our nation’s current fiscal challenges, attempt to define the real problems at hand, and begin to lay the groundwork for long term bipartisan solutions.”

We are very anxious to see what kind of “bipartisan solutions” will be put forth. Former Republican Senator and Commission Vice-Chair Alan Simpson recently said: “We’re not going to say we’re going to grow our way out of this…Hell, we could have double (-digit) growth for 30 years and never grow our way out of this.” Senator Simpson’s comments well illustrate the truth of the matter: the only two options we have for fixing the situation are raising taxes or cutting spending.

A great deal of the chatter in Washington is about raising taxes, or implementing new tax schemes, in order to address the deficit without much focus on the more appropriate solution of cutting spending. And while the federal debt is certainly troubling (hardly anyone disputes that we are on an unsustainable course), the Commission’s focus only on deficits does not capture the whole picture. The media and decision makers in Washington are using this commission to focus solely on how government is financed and is avoiding addressing rampant, out-of-control spending.  Addressing our spending levels should be a very important part of the Commission’s study.  Spending, in and of itself, is the problem.

It would be nice if the commission also gave some consideration to how government spending can crowd out private investment, distort business incentives, and cause efficiency losses. Furthermore, spending is the root cause of all of our fiscal problems – deficits are simply a symptom of overspending. The Commission will eventually make recommendations on fiscal responsibility.  We certainly hope they give due consideration to restraining out-of-control spending.

Check back with Bankrupting America regularly for updates on the President’s National Commission.

The President’s deficit commission: who, what & why

Monday, April 26th, 2010

WHY:

Why is the National Commission on Fiscal Responsibility & Reform necessary? Our nation’s fiscal security is at risk.  Deficits are expected to total $9.8 trillion over the next 10 years. The national debt stands at nearly $12.9 trillion and is growing rapidly.

WHAT:

What is the stated purpose of the commission? On Feb. 18, 2010, President Obama signed an executive order creating the commission. It’s stated purpose is to make recommendations to cut deficits to 3% of GDP by 2015 and improve the country’s long-term fiscal outlook.

How will it work? The commission must report its recommendations to the President by Dec. 1, 2010. 14 of the 18 members must agree on the recommendations.

WHO:

Who will run it? Former Bill Clinton chief of staff Erskine Bowles and former Senate Whip Alan Simpson (R-WY) will chair the commission.

Who are the other members? The commission has 16 other members. Twelve were appointed by the House and Senate. President Obama appointed the others.

House Democrats: Xavier Becerra (CA), Jan Schakowsky (IL), John Spratt (SC).
House Republicans: Dave Camp (MI), Jeb Hensarling (TX), Paul Ryan (WI).
Senate Democrats: Max Baucus (MT), Kent Conrad (D-ND), Dick Durbin (D-IL).
Senate Republicans: Mike Crapo (ID), Judd Gregg (NH), Tom Coburn (OK).
President Obama: In addition to Bowles and Simpson – Andy Stern, president, Service Employees International Union; Dave Cote, president and CEO, Honeywell; Ann Fudge, former CEO, Young & Rubicam Brands; Alice Rivlin, senior fellow, Brookings.

POSSIBLE OUTCOMES:

Most likely: Tax increases. One of President Obama’s appointees to the commission said as much. Some believe the commission will propose a value-added (VAT) tax – in essence, a national sales tax that would be paid in addition to current income and state sales taxes.

Somewhat likely: Nothing at all. House Majority Leader Steny Hoyer (D-MD) believes it’s unlikely 14 of the 18 members will agree on any recommendations at all.

Least likely: Substantial spending cuts. Spending cuts would be the most economically beneficial solution to the problem, but is least likely to get much attention. All spending programs have constituencies and some of the members, notably the lawmakers, have strong political interests in preserving their existence.