What I've Been Saying All Along...

From today's Huffington Post. Article by Sam Stein:

BUSH DEFICIT HURTING OBAMA



The emerging narrative in political circles is that the White House has a deficit problem. Glenn Beck, over at Fox News, insists that Obama is "spending us into oblivion." Politico called the recent round of job-stimulus appropriations a "spending binge." Sen. Judd Gregg (R-N.H.) deemed this an era of "fiscal recklessness and irresponsibility," the extent of which is "shocking to the American taxpayer."

The drumbeat is loud enough to put Democrats on notice. The president has increasingly discussed the need to get the deficit under control in recent speeches. And in Congress, a proposal to set up a bipartisan commission to force deficit reduction is gaining steam among the party's more conservative members.

All of which may be vital, say budget analysts say. But the hysteria over the deficit misses a fundamental point: the country's fiscal problems largely aren't due to Obama but rather his predecessor.

A forthcoming study by the Center on Budget and Policy Priorities concludes that the $1.4 trillion annual deficit run by the government has little to do with current White House policies and much to do with George W. Bush's actions.

"What we have looked at were several major contributors to the deficit: the tax cuts between 2001 and 2003 (on the assumption they get extended in 2010), the cost of the wars in Iraq and Afghanistan and the effects of the recession as well as the legislative response to the recession," James Horney, director of federal fiscal policy at the Center, told the Huffington Post. "When you take those things into account -- in other words, if we hadn't enacted the tax cuts, had the wars, if we hadn't had the recession and needed the legislation to deal with those problems -- the deficits are much, much lower. And basically none of those represent Obama's policies. He didn't run saying he wanted to pass a stimulus to deal with the recession or that he wanted to continue the war in Iraq or escalate [to this extent] in Afghanistan. He inherited these issues once he took office."

"Now we still have a big budget problem in the long run," Horney added. "It is not inappropriate for people to say we have to deal with that. And it is not inappropriate for them to say Obama is president and has the responsibility to deal with this. But it is not appropriate to say that Obama's policies have contributed to the deficit problem."

Horney said that the Center on Budget and Policy Priorities' analysis will be released in the next few weeks. But already, there is data available to supplement its findings. In mid-November, the Democratic-leaning Center for American Progress put together an analysis of its own, in which it concluded that the so-called "Obama spending spree" paled in comparison to the checks written by Bush.

"It's true that spending in 2009 was much higher than it was the previous fiscal year, by about $602 billion, excluding payments on the national debt (which actually declined in 2009 because of low interest rates)," wrote Michael Linden, an associate director for tax and budget policy at the Center. "But it turns out that a huge chunk of that increase actually happened before President Obama took office. In fact, fully 41 percent, or $245 billion, came in the form of the Troubled Asset Relief Program and the rescues of Fannie Mae and Freddie Mac, actions taken in the fall of 2008 under President George W. Bush.

As for the deficit that conservatives decried, Linden concluded that it was the recession, not Obama, that was to blame. In 2009, federal tax receipts were $419 billion below 2008 levels -- the largest decline from one year to the next in seven decades. "The overall cost of the decline in tax revenues was four times larger than the cost of Obama's initiatives," wrote Linden.

The decline of tax revenues due to the recession may not be a development tied to Obama. But it has become a perplexing problem for this administration.

The White House has raised spending levels by roughly $600 billion in FY2009 -- almost exclusively through temporary programs such as the stimulus -- in order to spur economic growth and increase that revenue base. But spending money to make money can be a costly venture in the short run, especially as the recession is prolonged. Unemployment benefits that used to expire after six months, for instance, have been extended by Congress at a heavy but morally defensible cost. And even when GDP rises, the government is still operating off a largely reduced revenue stream, complicating its efforts to pass pieces of domestic legislation.

"It is not like when the recession ends, people's incomes bounce back to where they were before the recession," said Rob Shapiro. "You will be behind where you were before the recession for a while... There has been a real economic reduction in the base of GDP. So GDP now, when it goes up three percent, it is off of a lower base. It's not off of, say $15 trillion but off of $14 trillion."


...of course, Republicans (especially the Palin supporters, Tea Party and birther types) will never admit this. They couldn't even read through the entire article.

6 Things the Palin Pick Says About John McCain

From Saturday's Politico...and exactly what I was thinking, though I probably wouldn't have said as well!

Jim VandeHei, John F. Harris Sat Aug 30, 9:57 AM ET

The selection of a running mate is among the most consequential, most defining decisions a presidential nominee can make. John McCain’s pick of Alaska Gov. Sarah Palin says a lot about his decison-making — and some of it is downright breathtaking.

We knew McCain is a politician who relishes improvisation, and likes to go with his gut. But it is remarkable that someone who has repeatedly emphasized experience in this campaign named an inexperienced governor he barely knew to be his No. 2. Whatever you think of the pick, here are six things it tells us about McCain:

1. He’s desperate. Let’s stop pretending this race is as close as national polling suggests. The truth is McCain is essentially tied or trailing in every swing state that matters — and too close for comfort in several states like Indiana and Montana the GOP usually wins pretty easily in presidential races. On top of that, voters seem very inclined to elect Democrats in general this election — and very sick of the Bush years.

McCain could easily lose in an electoral landslide. That is the private view of Democrats and Republicans alike.

McCain’s pick shows he is not pretending. Politicians, even “mavericks” like McCain, play it safe when they think they are winning — or see an easy path to winning. They roll the dice only when they know that the risks of conventionality are greater than the risks of boldness.

The Republican brand is a mess. McCain is reasonably concluding that it won’t work to replicate George W. Bush and Karl Rove’s electoral formula, based around national security and a big advantage among Y chromosomes, from 2004.

“She’s a fresh new face in a party that’s dying for one — the antidote to boring white men,” a campaign official said.

Palin, the logic goes, will prompt voters to give him a second look — especially women who have watched Democrats reject Hillary Rodham Clinton for Barack Obama.

The risks of a backlash from choosing someone so unknown and so untested are obvious. In one swift stroke, McCain demolished what had been one of his main arguments against Obama.

“I think we’re going to have to examine our tag line, ‘dangerously inexperienced,’” a top McCain official said wryly.

2. He’s willing to gamble — bigtime. Let’s face it: This is not the pick of a self-confident candidate. It is the political equivalent of a trick play or, as some Democrats called it, a Hail Mary pass in football. McCain talks incessantly about experience, and then goes and selects a woman he hardly knows, who hardly knows foreign policy and who can hardly be seen as instantly ready for the presidency.

He is smart enough to know it could work, at least politically. Many Republicans see this pick as a brilliant stroke because it will be difficult for Democrats to run hard against a woman in the wake of the Hillary Clinton drama. Will this push those disgruntled Hillary voters McCain’s way? Perhaps. But this is hardly aimed at them: It is directed at the huge bloc of independent women — especially those who do not see abortion as a make-or-break issue — who could decide this election.

McCain has a history of taking dares. Palin represents his biggest one yet.

3. He’s worried about the political implications of his age. Like a driver overcorrecting out of a swerve, he chooses someone who is two years younger than the youthful Obama, and 28 years younger than he is. (He turned 72 Friday.) The father-daughter comparison was inevitable when they appeared next to each other.

4. He’s not worried about the actuarial implications of his age. He thinks he’s in fine fettle, and Palin wouldn’t be performing the only constitutional duty of a vice president, which is standing by in case a president dies or becomes incapacitated. If he was really concerned about an inexperienced person sitting in the Oval Office we would be writing about vice presidential nominee Mitt Romney or Tom Ridge or Condoleezza Rice.

There is no plausible way that McCain could say that he picked Palin, who was only elected governor in 2006 and whose most extended public service was as mayor of Wasilla, Alaska (population 8,471), because she was ready to be president on Day One.

Nor can McCain argue that he was looking for someone he could trust as a close adviser. Most people know the staff at the local Starbucks better than McCain knows Palin. They met for the first time last February at a National Governors Association meeting in Washington. Then, they spoke again — by phone — on Sunday while she was at the Alaska state fair and he was at home in Arizona.

McCain has made a mockery out of his campaign's longtime contention that Barack Obama is too dangerously inexperienced to be commander in chief. Now, the Democratic ticket boasts 40 years of national experience (four years for Obama and 36 years for Joseph Biden of Delaware), while the Republican ticket has 26 (McCain’s four yeasr in the House and 22 in the Senate.)

The McCain campaign has made a calculation that most voters don’t really care about the national experience or credentials of a vice president, and that Palin’s ebullient personality and reputation as a refomer who took on cesspool politics in Alaska matters more.

5. He’s worried about his conservative base. If he had room to maneuver, there were lots of people McCain could have selected who would have represented a break from Washington politics as usual. Sen. Joseph I. Lieberman comes to mind (and it certainly came to McCain’s throughout the process). He had no such room. GOP stalwarts were furious over trial balloons about the possibility of choosing a supporter of abortion rights, including the possibility that he would reach out to his friend.

Palin is an ardent opponent of abortion who was previously scheduled to keynote the Republican National Coalition for Life's "Life of the Party" event in the Twin Cities this week.

“She’s really a perfect selection,” said Darla St. Martin, the Co-Director of the National Right to Life Committee. It is no secret McCain wanted to shake things up in this race — and he realized he was limited to a shake-up conservatives could stomach.

6. At the end of the day, McCain is still McCain. People may find him a refreshing maverick, or an erratic egotist. In either event, he marches to his own beat.

On the upside, his team did manage to play to the media’s love of drama, fanning speculation about his possible choices and maximizing coverage of the decision.

On the potential downside, the drama was evidently entirely genuine. The fact that McCain only spoke with Palin about the vice presidency for the first time on Sunday, and that he was seriously considering Lieberman until days ago, suggests just how hectic and improvisational his process was.

In the end, this selection gives him a chance to reclaim the mantle of a different kind of politician intent on changing Washington. He once had a legitimate claim to this: after all, he took on his own party over campaign finance reform and immigration. He jeopardized this claim in recent months by embracing ideas he once opposed (Bush tax cuts) and ideas that appeared politically motivated (gas tax holiday).

Spontaneity, with a touch of impulsiveness, is one of the traits that attract some of McCain’s admirers. Whether it’s a good calling card for a potential president will depend on the reaction in coming days to what looks for the moment like the most daring vice presidential selection in generations.

Mike Allen contributed to this report.