Orszag: Obama Administration Inherited Recession

(CBS)

White House Budget Director Peter Orszag argued today that President Barack Obama inherited many economic woes from his predecessor but was confident about what the new administration will be able to accomplish as it puts its own stamp on economic policy.

"We are like a relief pitcher stepping into the ninth inning and we can't just redo the whole game," Orszag told Face the Nation host Bob Schieffer. He said that the economic lows have been "eight years in the making," citing signs of loss from 2007 and 2008 during the Bush administration.

Orzag listed the alternative plans Republicans have put on the table: One by the senior Republican on the House Budget Committee, Rep. Paul Ryan of Wisconsin, includes three trillion dollars in tax cuts "for the wealthy and corporations." Orzag also criticized the GOP plan for Medicare (giving a lump sum check to people when they turn 65 to cover all future medical expenses) and Social Security (investing funds in the stock market). "I'm not making this stuff up," he said incredulously. "That is their alternative plan.

"As Ronald Reagan once put it, there they go again," Orszag bemoaned. "We have had eight years of one approach, did not work."

When asked by Schieffer if the White House is considering the possibility of an additional stimulus package (beyond the $789 billion in aid signed by the president last month), Orszag said, "Within the first month in office we got the recovery act enacted; we should give it some time to work.

"It will take weeks and months for it to start to have an impact," he said, noting that the country is facing "a very deep and severe economic contraction."

That contraction appears to be worsening, Schieffer opined: "It seems as if every time the Obama Administration announces a specific effort to help the economy, Wall Street tanks." He also played the president's comments last week comparing the stock market to political tracking polls.

The Budget Director said that he does not feel investors have lost confidence in Mr. Obama, and that the White House is focused on recovery in particular areas which "corporate leaders and others have long said is the key to our economic future: a better education system, clean energy and a more efficient healthcare system."

The Budget Director also defended the president's healthcare proposal: "I think as people start to look at that proposal in more detail and compare it to the alternatives. They are going to come around to our proposal."

He reiterated the president's desire to enact healthcare reform in 2009, saying there was a lot of momentum behind getting it done by the end of the year. Orszag also said that the administration's healthcare proposal will likely meet some criticism in Congress and encouraged lawmakers to offer alternatives.

"I think they should come on this show, offer a detailed plan to what we are talking about, and I will let the American people evaluate the two ways forward," he challenged.

Schieffer spoke of opposition to one aspect of the president's plan, in which an

expansion of healthcare is funded by reducing the charitable deductions available to upper-income taxpayers, and asked if the president were rethinking that strategy.

Orzag said the proposal the White House put on the table is a "good proposal" but encouraged dissenting voices to put forth their own ideas.

"As the legislative process moves forward other people are going to put proposals on the table; let's let that play out," he said.


More from Face The Nation (3.08.09):

Boehner: Government Needs To Tighten Its Belt

Reporters Discuss Rush Limbaugh Controversy (video)

Read the full transcript> (pdf file)

To watch video of Peter Orszag and John Boehner on Face The Nation click below.

[mdgtbilly]

Obama, Nancy, and Harry inherited a recession all right. Their own! Look up 2008 recession on wiki and you will learn that in the start of 2007 they were all elected to congress. Our recession started at the end of 2007. Their aggenda put us were we are. Oh and I'm not giving Bush a pass here either. He signed all of their garbage. So get you facts straight and quit buying into all of this bull they want you to buy.

[llrichards]

Happy Days are here again. The dems are in control now so just ignore the neo-cons. I do believe the bankers, Wall Street and AIG someone should "pay" for the unethical practices that have been pursued so they won't happen again. Jail time would definitely serve justice -- especially towards the banks who "kept" quite and didn't give much warning. Bushy Baby having a behind the door scene with the House -- in May thanks to Kucinich who let the cat out of the bag -- we had a heads up otherwise we'd still be in the dark. Bush and the halls of congress knew the ills of our country in May and could have done alot to derailed the inevitable and chose to stay silent -- with exception to a handful of dems those who chose not to bomb Iraq -- the ones who stood up and was condemned for doing so -- told us on Amy Goodman's show what was happening -- how Bush was all ready to lead everyone to hiding bunkers -- to protect them from the raging "mob" outside -- Republican's are not ethical -- Condelesa Rice had Conflict of Interest, Cheney had conflict of interest (Oil/Haliberton) and yet they chose to run for office still connected to these business -- Bush and compnay lied about Iraq, lied about Katrina, lied about the economy, cheated at getting elected, outed Valerie Plane because her husband chose to say the truth -- there was nothing in Africa and Bush and Cheney walk while his minon took the heat -- what has happened to the absolute thinking of the uneducated christian right neo-con party I forgot the Republican party had been hijacked -- many Republicans who will never tell voted for Barack Obama -- stand up Republican's this economy is crashing down before us like a deck of cards and the red states as welll as the blue states are going to fall. We all can pick ourselves up again and start again. The banks are now "Nationalized" as well as AIG and the Big Two automakes who failed to see the writing on the wall -- change change change!

[speakinup]

Mr Orszag, you may feel like you are a relief pitcher in the ninth inning, but believe me - Obama KNEW what he was getting into - and wanted the job ANYWAY.

The way the Conservatives feel about your approach to the problem is, you came to a gun fight witha knife !

Unfortunately - you are indicating by your "relief pitcher" status that you have no OWNERSHIP intentions in your PORK spending. And, equally unfortunately, your spending is designed to mainly help those that voted for your President via a Socialistic package.

THAT would be buying votes and the worst part of this President.

[TPS2]

"To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile but is morally treasonable to the American public" (Theodore Roosevelt). Placing blind faith in any politician is a sure path to disappointment, regardless of what party they to belong to. Certainly no single party has the cornerstone on making bad decisions. Obviously mistakes have been made; however, wishing for one party rule is a dangerous mindset to buy into. An honest study of countries with one party rule will demonstrate their absolute failure at governing effectively. Both parties need to put away petty partisan squabbling and get down to the business at hand. Honestly do we really need our President worrying about what Rush Limbaugh is saying on his talk show? Should the members of the President's cabinet, waste time and resources on such nonsense? Are we honestly to believe a non-elected wind bag is the voice of the Republican Party? Many of you are right, it is easy to point out the problems and far more difficult to provide a solution. The American people need to hold them ALL accountable, and if they do not provide adequate solutions, we can remove them from office just like the Republicans have recently witnessed.

[mattcat25]

The Republican Plan was to break every US Governmental Agency and Process rendering the American People suffering and desperate. The shock doctrine imposed by the Conservative Agenda allows for the authority to shift Power and Wealth.

The Republicans pose neither a plan nor resolve to the current US Economic Recession. The Republicans are not part of the Solution they are the Problem.

[homespunlady]

The new plan is NOT perfect but I agree with Peter Orszag

- if the Republicans DO NOT like the plan being put forward then WHERE is THE DETAILED REPUBLICAN PLAN??????

All I'm seeing is MORE of the SAME old Smoke and mirrors WHINE from them.

Did the GOP REALLY THINK that handing out a LUMP SUM payment of what they think MIGHT be 80 percent of the value of ALL FUTURE health care expenses at age 63 for the REST of a person's life is a COMMON SENSE SOLUTION to our national health care CRISIS???

My guess is about half would have that spent in less than a year - on everything BUT health care and then this nation would be WORSE OFF as thousands DIED IN THE STREET and our medical establishment crumbled under the weight of UNPAID care and epidemics caused by unmanaged diseases let run rampant.

FEUDALISM IS NOT the answer to FEARS of SOCIALISM.

[wvu74621]

BULL! Do you hear me? BULL! I KNOW the Republican Party took over a nation doing well. We had a balanced budget and surplus when they took over, we never even got close after that. I know they took ALL the regulations off the Banking Industry and BRAGGED about it during elections all the way up to 2006. Now maybe you don't think we should hold those responsible who did these things... maybe you think Trickle Down Economics is fine in the face of reality. I can't tell because you just seem to want to blame those who HAD NOTHING to do with Trickle Down nor the MASSIVE shift in Wealth it brought about. IF we do NOT hold those accountable who BROUGHT us the mess we have, IF we are going to place blame on those who had NO CONTROL over that system, how can we fix the problem. My point remains! The Republican Party has NO PLAN going forward. The Democrats are the ONLY game in town.
Posted by skyk-2009 at 4:53 AM : Mar 9, 2009

Calm down, calm down, it will be ok. Noone is trying to take your cookie away. Don't be PO'd because people are dumping on the new guy. It is inevitable, We are not a Nation of Zombies, it is in our nature to ask what the heck someone is doing when it does'nt make sense. There is no way that you can convince me to agree and follow the President. You may follow blindly, not ask questions. But I won't!

[wvu74621]

Buck up and try to be an American here will ya??
Posted by skyk-2009 at 4:43 AM : Mar 9, 2009

Well see, I am an American. Just not a foolish one. The problem is most are so desperate that they will believe anything they are told in the form of a pack of lies. I am not sweating because I saw this coming throughthe GB administration, and as soon as Obama annonced his plan to run. I prepared finacially to endure 4 years of his policies. There is nothing that makes my skin crawl more than a fanatical followers that are afraid of the truth.

[wvu74621]

Uh huh! Man you can't sell that to anyone, let alone the American People right now. They know what they did in 2006 and they knew it wasn't nearly enough to change the course of this nation. They saw what the Republican Party did after that election, which was to stall and prevent any change from taking place. So? They came back in 2010 and put the Republican Party OUT OF BUSINESS! It's no longer a viable political party, just a regional party of blame and hate. They have no plan, no solution to anything.
Posted by skyk-2009 at 4:46 AM : Mar 9, 2009

I never claimed to support the Republican party. My crtiticism of your Idol is based on his actions, lies and misdirection.

[wvu74621]

As compared too? LOL You talk like there is an Option here? You talk like the Republican's actually exist and have a plan! LOL This is the ONLY show in town my friend! When you see the "Leaders" of the Loyal Opposition crawling to a Talk Show Host begging for forgiveness because they criticized him? Whats the chance those people have the courage to take on ANYTHING, let alone a crisis such as this. Buck up and try to be an American here will ya??
Posted by skyk-2009 at 4:43 AM : Mar 9, 2009

Your very statement prooves that you are following blindly. If you read instead of respond you will see I also crticize Republicans. I have no party affiliation. Why, because all politicians lie. As for the current wonder worker, I see he has you compleyely fooled. Lets talk again in about 1 year and we will see how willing you are to follow this clueless wonder.