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Obama Deficit Commission Pushes Back Against 'Washington Assassins Of Change'

First Posted: 06/26/10 06:12 AM ET Updated: 05/25/11 05:15 PM ET

Deficit Crunch

Even before its first official meeting, the bipartisan National Commission on Fiscal Responsibility and Reform (a.k.a. the White House Deficit Commission), is suffering from an affliction common to Washington entities: abundant skepticism.

Conservatives call the effort to make deficit reduction recommendations a dog-and-pony show. Progressives fret about the free-market ideologues on the panel. Few imagine that anything produced will carry much weight -- after all, the final report is not legally binding.

Faced with a trust deficit before their initial meeting on Tuesday, committee members recently began what can best be described as a self-defense campaign. The two chairs -- former Sen Alan Simpson (R-Wyo) and former Clinton White House Chief of Staff Erskine Bowles -- took to Fox News for a joint appearance this Sunday. And on Monday, one of the top progressive figures on the panel, departing SEIU president Andy Stern, derided the "the Washington assassins of change" who are discrediting the panel.

"If this group of people reaches a conclusion on almost anything, it will mean something," Stern said, in an interview with the Huffington Post. "Forgetting me, these are not insignificant people. I would say that the most interesting thing is that publicly everyone has low expectations... Everybody's scared that we have meetings and everybody can't see what's going on because somebody may do something wrong. I would say my conversations with the people on the commission, everybody appreciates that this is really a bad problem."

Exactly how big a problem has become a source of contentious debate. In a winding conversation from his office next to Dupont Circle, Stern stressed that Congress (which he labeled "a failed experiment of fiscal responsibility") has to sober up to the reality that the financial path it was on is no longer sustainable. Waste needs to be eliminated, defense programs need to be un-bloated, the tax system needs simplification. Stern was warm to a proposal from Rep. Jeb Hensarling (R-Tex.) requiring that budgets have two-year windows and he spoke admiringly of Sen. Tom Coburn's (R-Okl.) campaign to eliminate earmarks. In fact, at the fourth positive mention of Coburn's name, the Huffington Post asked whether Stern and the archconservative Oklahoma Republican had begun hanging out on weekends.

"I wouldn't say that I hang out with him," Stern replied. "But I do have a notebook from him listing all the waste, fraud and abuse." (He then produced a two-inch think black binder entitled "$150 Billion in Discretionary Savings, Waste & Duplications in the Federal Bureaucracy.")

Even entitlement systems -- which are fiercely protected by progressives in any discussion of deficit reduction -- need to be reexamined, Stern said, before stressing that "there's a certain amount of money it needs to spend on safety nets and taking care of people who otherwise have issues they can't deal with." Most important of all was that all the recommendations had to be considered together. Taken alone, they won't work.

"There's not a debate about do we have to do something," he said. "There's not a debate about how serious is this; this is a catastrophe waiting to happen if nothing is done. But I think Congress has a long history of dumbing down big things into small things and I think there is a challenge here to get them [not to do that.]"

But not everyone is entirely convinced that big action is needed. While projections suggest the economy is on track for a historically high debt, the issue stems primarily from the decreased tax revenues during this recession. That recession, of course, is weakening. That the president would consider spending cuts at this juncture is problematic for recovery, progressive economists argue. That he would allow free-market conservatives a presidential-sanctioned platform to push for entitlement reform is troubling. Even more needless, they argue, is the energy being spent to curb a deficit crisis that they claim isn't a crisis.

"The frame of the debate is between those who think the witches have taken over the entire community and the whole lot of them should be burned and those who think there are only a few witches and burning just a few of them would be enough to appease the demons," said James Galbraith, the Lloyd M. Bentsen Jr. Chair in Government at the University of Texas. "There are a few of us operating safely removed from the bonfires who maintain there is no such thing as witchcraft."

On Tuesday, nevertheless, the deficit commission will begin an eight-month-long process to study, debate and ultimately chart a new fiscal path forward. Made up of both Republicans and Democrats, those fabled "Washington assassins of change" whom Stern laments are already convinced that the process will be political theater.

"If we're all going to give big speeches about Bush was more irresponsible than Clinton, Obama is bringing the country to its end, then let's all go home," Stern said in reply. "I have none of that sense at all."

By pushing the publication of its final findings until after the November elections, in fact, the commission is hoping to remove the politics of the midterm elections from the proceedings. "What is the cop-out about that?" Simpson asked Fox News's Chris Wallace when pressed whether or not having a pre-election rollout would diminish the findings. Indeed, if all goes as planned, Stern said, the commission's report will serve as a platform for all politicians going forward.

Success, as he defined it, would result if the report has "created enough momentum so that as we go into a presidential election in 2012 and everybody's talking about fiscal responsibility... For the conservatives, you can't be fiscally responsible and then say 'Despite the fact that all these Republican members of the committee, hypothetically, have voted for this, here's my plan.' And for President Obama, who obviously people want to box him in as running America's economy into the ground, it would be a very helpful tool I'm sure to have a report from a bipartisan group of people that outlines a way forward."

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Even before its first official meeting, the bipartisan National Commission on Fiscal Responsibility and Reform (a.k.a. the White House Deficit Commission), is suffering from an affliction common to Wa...
Even before its first official meeting, the bipartisan National Commission on Fiscal Responsibility and Reform (a.k.a. the White House Deficit Commission), is suffering from an affliction common to Wa...
 
 
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12:59 AM on 04/27/2010
Faux?! No one believes their opinion anymore. It's become the gathering ground for washed up conservatwits the way "mrder she wrote" became the gathering ground for washed up actors.
HUFFPOST SUPER USER
letsgetitdone
12:42 AM on 04/27/2010
Hi SK, Thanks for calling attention to the answer to the deficit hawks. The Fiscal Sustainability Teach-In Counter-Conference to be held on April 28th the same day as the Peterson Foundation event at GWU's Marvin Center, room 310 (The Elliot Room). See: www.fiscalsustainability.org

This free event will present a view that isn't just opposed to the specifics of the deficit hawk view but also to the deficit dove view that of course deficits are important, but we can wait to do anything about them until the recession is over.

This just get us into a game of haggling over the price. The more fundamental reason to oppose deficit hawkism is that the very idea that deficits are important for nations sovereign in their own fiat money system such as the US is just flat wrong. It's bad economics and it ignores the facts about how such governments actually spend money.

Sam Stein, why don't you take a flyer n Wednesday and spend your time at the Teach-In Counter-Conference rather than at Peterson's show? If you do you'll have a new point of view to report about and won't have to just stick to the haggling. Paul Jay of therealnews.com is coming. Why not you too?
01:01 AM on 04/27/2010
Wonderful suggestion, Lets! Yes, Mr. Stein, please go to the Counter-Conference and report about it!
HUFFPOST SUPER USER
EdA
12:14 AM on 04/27/2010
Representing the Senate on this garbage commission is a Republican Senator who will be a lobbyist in less than a year and Max Baucus and Kent Conrad, the two corrupt Democratic Senators, from states where nobody lives, who sabotaged meaningful health care reform to benefit their true owners, the insurance and health care industries.

I hope that the President doesn't actually believe that anyone sees this commission as being intended to benefit the American public.
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HUFFPOST PUNDIT
goodog
Honk if you believe in a public editor.
12:01 AM on 04/27/2010
This reminds me of the Iraq Study Group, empowered in March before the 2006 mid-term elections to figure out what to do about the mess Bush had made in Iraq.

It too was not due to report until after the election, and it gave incumbents something vague to hang a hat on, saying, "we'll see what the study group has to say, so why speculate," instead of having to come up with a certain answer about a topic with which the electorate had had it.

After Bush totally lost the mid-term elections, he was able feign having "gotten the message" and turn to the as of yet unpublished report and say that it would show the way forward without him even then needing to commit to anything beyond handing Rumsfeld his assinhishat.
12:09 AM on 04/27/2010
Iraq study group was real. It had an even # of Dems and Repubs. Obama deficit commission has more Dems. It is going to be used to justify the VAT and other taxes.
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HUFFPOST PUNDIT
goodog
Honk if you believe in a public editor.
02:59 AM on 04/27/2010
"Iraq study group was real."

Name the ways in which Bush carried out the recommendations of this "real" commission.
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Nardwilly
05:13 AM on 04/27/2010
Dems would not push VAT because it is regressive. Also VAT does not get money from the rich.
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11:53 PM on 04/26/2010
I'm with Galbraith on this. The whole deficit issue is overstated. A quote from Galbraith:

Today, the signature of modern American capitalism is neither benign competition, nor class struggle, nor an inclusive middle-class utopia. Instead, predation has become the dominant feature — a system wherein the rich have come to feast on decaying systems built for the middle class.
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efmo
Oh no, my micro-bio is empty!
12:27 PM on 04/27/2010
I read his book, too - fanned.
11:52 PM on 04/26/2010
The VAT is coming. Obama wants to tax anything and everything.
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12:04 AM on 04/27/2010
Foolish. Obama just provided the biggest middle class tax cut ever.
12:10 AM on 04/27/2010
Nice talking point. The tax 'cut' is what $13 or something?
11:28 PM on 04/26/2010
Get rid of the FED. The Bankers own this country lock stock and barrel. Amazing enough we don't know how our Treasury really works. Almost 97yrs of the FED is to much. Why is this not explained to us. They just stole trillions of dollars and are able to walk free,unscathed and the junior officers are in play to clean our clocks the next time around. The FED is at the base of every economic collapse our country goes through. WHY CAN'T WE WAKEUP PEOPLE? So lets continue politics as usual and insure the change the average voter wants never comes to fruition!
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12:10 AM on 04/27/2010
Would be advisable to read a Macroeconomics book. Here's a suggestion:

http://www.amazon.com/Macroeconomics-James-K-Galbraith/dp/9071301575/ref=sr_1_6?ie=UTF8&s=books&qid=1272341352&sr=1-6
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HUFFPOST PUNDIT
goodog
Honk if you believe in a public editor.
11:21 PM on 04/26/2010
"...the White House Deficit Commission), is suffering from an affliction common to Washington entities: abundant skepticism. Conservatives call the effort to make deficit reduction recommendations a dog-and-pony show."

Is it really skepticism if teaBirthers say "No!" no matter what?
11:53 PM on 04/26/2010
Not a dog and pony show. It is designed to raise taxes. That is why Obama did not create an even commission. 2 more Dems than Repub. Iraq study group was evenly divided.
12:10 AM on 04/27/2010
Dog and Pony show, meaning the sugar coating they put on the pill before they convince you to take it.

Whoops, that was a suppository.
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HUFFPOST PUNDIT
goodog
Honk if you believe in a public editor.
02:56 AM on 04/27/2010
name each Republican and Democrat by party, and your references will be appreciated.

Otherwise...
11:11 PM on 04/26/2010
We just need to increase income taxes to where they were before Regan cut them. In Europe people pay 60%+. Why not do it here? People who make over $1 million should be taxed at least 70%. People don't need that much money. They live in mansions while blue collar workers can't even afford to put food on the table while working 80+ hours a week. Maybe we should also add a fatcat banker tax....
11:54 PM on 04/26/2010
Great idea. Increase taxes while unemployment is 9.7%
12:12 AM on 04/27/2010
Double digit unemployment and inflation! Just like good ol' Carter!

Let's repeat history (Bush Sr. and Jr., Carter and Obama) and hope for a different outcome. It's probably a random experiment (The outcome always changes, even with the same actions) right?
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efmo
Oh no, my micro-bio is empty!
03:04 PM on 04/29/2010
Yes & the oil shocks of the 70's had nothing to do with the inflation during that time. It was all Carter's fault.Though at least it sounds like you are spreading some of the blame on both sides of the aisle.
10:59 PM on 04/26/2010
It is extremely difficult to push back against the growing media hype and narrative of the Petersons, and their ilk, of this country, who blather on about deficits hurting the economy as they off-shore jobs and money, play tax games so that they do not contribute to the very society that made them obscenely wealthy, and now want to strip what little is left of the safety net that people have been paying into their entire lives, in order to make the new Gilded Age even more outrageously rapacious. However, there is a growing movement of average citizens and rational economists, here, and even world-wide, determined to show the idiots who drove this economy into the ground, and even admitted they didn't know what they were doing whle they did that, there is another economic plan that we, the people, support. This is important, people! The movement to change the discourse of our "leaders" will affect the near future, and the future of our children, even the future of our country. On Wednesday, economists from around the country, and the world, will be holding a free "Fiscal Sustainability Teach-in" in Washington, to counter the growing deficit-hawk propaganda. Please take a moment to check it out, it's being done on a shoe-string, truly a grass-roots movement vs the Peterson astro-turf, and needs your support. Investigate, donate, spread the word!!:
http://www.fiscalsustainability.org/
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12:00 AM on 04/27/2010
You are correct, this needs much more attention!

Looks like a great conference!

Fanned!
12:27 AM on 04/27/2010
Here's what Jamie Galbraith said about the Teach-In:

______________

"The Fiscal Sustainability Teach-In Counter Conference will be the important event in Washington on April 28. Unlike the other meeting, this one will feature important work by honest scholars. It deserves at least equal attention, and very much more respect."

--- James K. Galbraith, The University of Texas at Austin. [April 19, 2010 via email with permission]
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ClassicalGas
Colorado Rocky Mountain Hi!
01:17 AM on 04/27/2010
I received this in an email today, it sounds like an approach that may complement your event nicely. The more press and push back we can deliver to counter the Tea people, the better, IMO.

"Today, Coffee Party USA launches our first campaign:
http://www.coffeepartyusa.com/content/clean-wall-street-k-street

Clean Up Wall Street & K Street

We may not be economists or financial experts, but we know that we need reform on Wall Street and that the banks should not have more power over Congress than the American people."
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HUFFPOST COMMUNITY MODERATOR
01202009
10:34 PM on 04/26/2010
And the Debt Clock is..Ta Ta...George Bush's legacy!
11:07 PM on 04/26/2010
Blame Bush...waaaa...waaa...
Agent672
Myers's in Life
11:18 PM on 04/26/2010
don't forget to blame Reagan...well actually, it's the whole Conservative ideology that is to blame.
HUFFPOST COMMUNITY MODERATOR
trishinpitt
No, your micro-bio is empty!
12:03 AM on 04/27/2010
well, he can take the blame for at least $5 trillion... He spent more in 8 years than all 42 presidents before him...that's quite an accomplishment!
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Dustee
CBO: debt drops from 10% to 2.1. GOP don't care.
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HUFFPOST SUPER USER
Ramirez
Taxpayer-American
10:23 PM on 04/26/2010
There is nothing preventing Congress from reducing the deficit and there is nothing preventing the president from taking the lead in getting it done.

We don't need an unelected "deficit commission" making choices our elected leadership does not have the will to make.
09:46 PM on 04/26/2010
What is it with the Obama administration., Pass bills and figure out later what to put in them. The congress is going to pass a financial reform bill and then they will define the rules are later. Then the dems think it is a great idea. Duh!
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HUFFPOST SUPER USER
MIVOTE
Adds wisdom to knowledge
10:59 PM on 04/26/2010
You are challenged.
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HUFFPOST SUPER USER
johuyik
Pro-2cnd and anti-NRA.
09:45 PM on 04/26/2010
Makes me wish for the good ole days under our good ole boy, "W". I remember it like it was yesterday: The GOP controlled congress, .instead of deficits we had surpluses every year, the US dollar was stronger than ever, and all of our banks were solvent.
09:51 PM on 04/26/2010
then georgie came to office and promptly squandered 5 trillion dollars with nothing to show for it.
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Cea80
κόπρος γίγνεται.
10:18 PM on 04/26/2010
After coming into office with such a huge mandate - having won the popular vote by such a large margin - he then presided over eight years of peace and happiness. The government was so transparent and efficient! Remember how adept it was at handling the 9/11 attack and hurricane Katrina? Textbook good governance.
Ah, those were the days.
HUFFPOST COMMUNITY MODERATOR
trishinpitt
No, your micro-bio is empty!
12:05 AM on 04/27/2010
yes! and unicorns roamed the streets while Dick Cheney played a lute and sang songs of happiness and love! It was a marvelous time!
09:41 PM on 04/26/2010
What is it with the Obama administration., Pass bills and figure out later what to put in them. The congress is going to pass a financial reform bill and then they will define the rules are later. Them the dems think it a great idea. Duh!
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HUFFPOST SUPER USER
Vex Atious
10:27 PM on 04/26/2010
What you don't know about administrative law would fill a fairly large law library bookshelf. Go the Federal Register for starters.
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HUFFPOST SUPER USER
MIVOTE
Adds wisdom to knowledge
11:00 PM on 04/26/2010
You need another fan. #2.
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HUFFPOST SUPER USER
MIVOTE
Adds wisdom to knowledge
11:00 PM on 04/26/2010
You are challenged.