[lbo-talk] Obama, deficit hawk

Doug Henwood dhenwood at panix.com
Tue Dec 8 10:44:53 PST 2009


<http://www.whitehouse.gov/the-press-office/remarks-president-job-creation-and-economic-growth

>

So one of the central goals of this administration is restoring fiscal responsibility. Even as we have had to spend our way out of this recession in the near term, we've begun to make the hard choices necessary to get our country on a more stable fiscal footing in the long run. So let me just be clear here. Despite what some have claimed, the cost of the Recovery Act is only a very small part of our current budget imbalance. In reality, the deficit had been building dramatically over the previous eight years. We have a structural gap between the money going out and the money coming in.

Folks passed tax cuts and expansive entitlement programs without paying for any of it -- even as health care costs kept rising, year after year. As a result, the deficit had reached $1.3 trillion when we walked into the White House. And I'd note: These budget-busting tax cuts and spending programs were approved by many of the same people who are now waxing political about fiscal responsibility, while opposing our efforts to reduce deficits by getting health care costs under control. It's a sight to see.

The fact is we have refused to go along with business as usual; we are taking responsibility for every dollar we spend. We've done what some said was impossible: preventing wasteful spending on outdated weapons systems that even the Pentagon said it didn't want. We've combed the budget, cutting waste and excess wherever we could. I'm still committed to halving the deficit we inherited by the end of my first term -- cutting it in half. And I made clear from day one that I would not sign a health insurance reform bill if it raised the deficit by one dime -- and neither the House, nor the Senate bill does. We've begun not only changing policies in Washington, we've also begun to change the culture in Washington.

In the end, the economic crisis of the past year was not just the result of weaknesses in our economy. It was also the result of weaknesses in our political system, because for decades, too many in Washington put off the hard decisions. For decades, we've watched as efforts to solve tough problems have fallen prey to the bitterness of partisanship, to prosaic concerns of politics, to ever-quickening news cycles, to endless campaigns focused on scoring points instead of meeting our common challenges.

We've seen the consequences of this failure of responsibility. The American people have paid a heavy price. And the question we'll have to answer now is if we're going to learn from our past, or if -- even in the aftermath of disaster -- we're going to repeat those same mistakes. As the alarm bells fade, the din of Washington rises, as the forces of the status quo marshal their resources, we can be sure that answering this question will be a fight to the finish. But I have every hope and expectation that we can rise to this moment, that we can transcend the failures of the past, that we can once again take responsibility for our future.



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