Obama Vows To Cut Wasteful Spending

President-Elect Names Peter Orszag as Budget Director, Calls For Fiscal Restraint As He Plans Expensive Stimulus Package

(CBS/AP)  President-elect Barack Obama pledged to make deficit reduction a goal of his administration Tuesday - but only after recovery from the financial crisis is well under way. "We are going to have to jump start the economy," he said.

At his second news conference in as many days, Obama claimed a "mandate to move the country in a new direction," and promised to consult with Republicans as he goes about it.

"I think what the American people want more than anything is just commonsense, smart government. They don't want ideology, they don't want bickering, sniping, they want action and effectiveness. When it comes to the budget, people don't want to continue argument about big government or small government, they want smart government and effective government."

The president-elect announced Peter Orszag would be his budget director, charged with scrutinizing spending with a goal of "eliminating those programs we don't need and insisting that those we do need operate in a cost-effective way." As an example that needs review, he cited reports that more than 2,700 millionaires received farm payments between 2003 and 2007, even though it wasn't clear they were eligible.

"Budget reform is not an option. It's a necessity," he said, adding he would ask his economic aides to "think anew and act anew."

Orszag is the director of the Congressional Budget Office, a man who the president-elect said "knows where the bodies are buried."

Obama's focus on careful federal spending marked something of a contrast from Monday, when he declared that restoring the economy to health took priority. Then, he urged Congress to prepare an economic stimulus program for him to sign as soon after Inauguration Day as possible. Estimates of the measure range from $500 billion to $700 billion over two years.

In Tuesday's remarks, he said, "As soon as the recovery is well under way, we need to set up a long-term plan to reduce the structural deficit and make sure we are not leaving a mountain of debt for the next generation."

"With several news availabilities and announcements this week, the President-elect is setting down some general principles for his economic team going forward to try to reassure the markets and consumers alike,” said CBSNews.com senior political editor Vaughn Ververs. “The new administration is still two months from taking power and but we’re seeing a real effort from the incoming team to make sure everyone knows they’re already beginning to work on a very complex and difficult set of problems.”

The deficit has soared during President Bush's tenure, and could well approach the once-unthinkable level of $1 trillion this year by the time the costs of the financial bailout and economic stimulus are taken into account.

Federal red ink hit a record $455 billion in fiscal 2008, ending Sept. 30, more than double the previous year.

"We are going to have to jump-start the economy ... but we have to make sure that those investments are wise. We have to make sure we are not wasting money in every area," Obama said Tuesday, defining the two objectives that will guide his economic program.

Elected on Nov. 4 in an Electoral College landslide, Obama claimed "a mandate to move the country in a new direction and not continue the same old practices that have gotten us into the fix we are in."

At the same time, he said, after gaining only 53 percent of the popular vote," we enter into the administration with a sense of humility and a recognition that wisdom is not the monopoly of any political party."

Along with Orszag, Obama named Robert Nabors as deputy budget director. Nabors has been the top staff aide on the House Appropriations Committee, which prepares spending legislation.

Earlier appointments included New York Federal Reserve President Timothy Geithner as treasury secretary and former Treasury Secretary Lawrence Summers to head National Economic Council.

[serf_1]

I like how Obama''s sign says "Office of the President Elect" There is no such office.

[prometheus41]

Of course, unlike the auto industry that is "resistant to change" and asking for $25 BILLION, the financial industry, which gives the middle finger to change, where corruption and self-interest are the life-blood of their industry, fully deserves TRILLIONS for their audacity.

Besides shattering the illusion of an industry that can easily be managed more cost effectively by the government for both consumers AND taxpayers collectively, is not something a country that has democracy, liberty and justice already propped up on wobbly stilts is ready to give the people the freedom to deny.

[scb111_1]

Investors hate every word this President Elect uses to say NOTHING!!! Can someone please "shut-up" this "stupid" Idiot before there is NO more market!!! The Dow down over 130 points after his news conference!!!

[neoconnie]

Does anybody know what time Sarah Palin will be on tv tonight? I want my daughter to watch so she can learn about family values and abstinence.

Also, do you know if her daughter Trick is still going to marry that jock Brick?

[ldvuong]

Where is the "Office of the President-Elect," it does not exist and have no real power, constitutionally?? All showing-off, arrogance, smooth-talking and rhetoric, without any real past records or achievements. It is the "sign" of immaturity.

[tipsyinct]

I''d be cool with him eliminating useless federal programs, like the FCC.

[prometheus41]

I like how Obama''''s sign says "Office of the President Elect" There is no such office.


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Posted by Serf_1 at 12:58 PM : Nov 25, 2008

You wouldn''t be seeing anything like this, if the current sociopath, pariah and piece of $hit in general infesting our White House was evicted and waiting in death row, instead of for a taxpayer financed golden parachute as the ultimate insult to an America robbed of justice and a future by the President-defunct.

[scb111_1]

All of Obama''s Economic Advisors were the CEOs of all these financial institutions before they drove them into the ground causing this financial crisis we have today???

[scb111_1]

President Elect Barack Obama will be the first President to be "IMPEACHED" for treason!

[tipsyinct]

Does anybody know what time Sarah Palin will be on tv tonight? I want my daughter to watch so she can learn about family values and abstinence.
Posted by Neoconnie at 01:05 PM : Nov 25, 2008

Hey maybe she can learn about how Africa is a country, and how the earth is only about 6000 years old, and how to say "You Betcha!" and shoot moose from a helicopter too!!

[aldon61]

Yeah, what is the ''''Office of the President-Elect'''' elect bull *****! He isn''''t even a US senator anymore...right now, he''''s just an Arabic/Muslim commie trying to figure out how to re-distribute the wealth....LMAO!


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Posted by Rowdydfw at 01:06 PM : Nov 25, 2008

Girl, you never quit do you? Why not shoulder up to the bar and support him, at least through his first year? Let''s see what he can do, because like it or not, he is our president. I hated Bush, but he was still my president. You have the responsibility to speak out if you disagree with his policies, but taking to calling him names shows no respect for the office of the presidency. The election is over, time to become one nation again. Love ya girl!

[used2bfedup1]

Hmmm Bush didnt vow to cut wasteful spending he spent more and cut taxes hence the huge debt we have now.

Obama already better than Bush and not even Pres yet.

[scb111_1]

Nobody believes one "useless" word from this President Elect! They didn''t believe anything he said during the campaign and why should they believe him now???

[consciousnes]

Where is Obama''s Fiscal Restraint? How many times do we have to elect a democratic president with a democratic congress to understand that it means higher taxes for the middle class. Just because a politician says he is for the middle class does not mean he is. When is the last time you have ever heard a politician tell the truth during a campaign?

WELL, YOU ALL VOTED FOR HIM, NOW YOU CAN DIG DEEP INTO YOUR POCKETS AND PAY FOR HIM.

[scb111_1]

Shut this Idiot up, investors in the market don''t believe one "useless" this President Elect says!!!

[bailthisout]

Orszag is the director of the Congressional Budget Office, a man who the president-elect said "knows where the bodies are buried."
I DO ALSO... THEY ARE SITTING IN THE CONGRESS. WHAT A BUNCH OF BULLSHIITE FROM OUR GOVERNMENT. I HAVE ALREADY STOPPED PAYING MY MORTGAGE AND WILL BE AWAITING SOME OF THIS BAILOUT MONEY.

[aldon61]

A Russian war ship is at venezula because of the our interfernce in the Georgian affair. This is just a taste of how Bush has failed us.


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Posted by melchg at 01:18 PM : Nov 25, 2008
+ report abuse

Only half right; we also want to put missles in western Poland which Russia has strongly opposed. We claim they''ll be trained on Iran but Russia knows that can change in a heart-beat. Bush has pushed the Russians to this tipping point and if we proceed with our plans, they''ll have missles in Venezuela pointing at us. Bush has brought this on, make no mistake about it!

[scb111_1]

The new American Motto: Quit your job, file bankruptcy and asks for your "Obama''s" bailout check!!!

[swin5]

I would also like to point out the reference to the non-existent ''office of the president elect.''

As I recall, in the past, newly elected presidents almost went into seclusion, quietly announcing their administrative choices, but for the most part staying in the background - as well they should, as we can only have one president at a time. FDR was a good example of this. This guy''s acting like he''s co-president, using the financial crisis as his excuse for usurping the authority of the sitting president. If he acts this way before he''s in office, what will happen when a crisis occurs once he''s in office?

In short, he seems to be really impressed with himself. My father warned me of people like him, people who seem all nice and one of the boys until they ascend to a position of authority. Then they change, and much for the worse. I predict a one term presidency of failure, and a disillusioned populace who just might, for once, turn to true moral leadership and statesmanship, instead of hubris and politics as usual.

[scb111_1]

I want to be a CEO of an financial institution, take millions and drive the company into the ground. Then become one of Obama''s economic advisors and ask for an "bailout" for the financial crisis for my fellow CEOs!!!

[used2bfedup1]

Posted by Consciousnes at 01:20 PM : Nov 25, 2008

When are Republicans going to learn that they have to pay for stuff they buy.

Most of them get in there immediately cut taxes they go to the military store---- Ill take 100 f-22''s, 5000 hummers, Ill increase the size of the military, start BS wars and ill write you a check. bounce bounce bounce.

Gimme a break Republicans claiming fiscal responsibility????

Hey cheney you want a

[labrat9999]

Rowdydfw.....
Boy you Republicans still can''t get over the fact that you didn''t win the election. You really need to move on with your life and get a grip. I personally don''t care what comments you make but at least admit you put a moron in power these last 8 years that has totally destroyed and bankrupted our country!!

[used2bfedup1]

The new American Motto: Quit your job, file bankruptcy and asks for your "Obama''''s" bailout check!!!

Posted by scb111_1 at 01:23 PM : Nov 25, 2008

Correction thats Bushies bail out check until January.

[louiville2]

A Russian war ship is at venezula because of the our interfernce in the Georgian affair. This is just a taste of how Bush has failed us.


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Posted by melchg at 01:18 PM : Nov 25, 2008
+ report abuse

Only half right; we also want to put missles in western Poland which Russia has strongly opposed. We claim they''''ll be trained on Iran but Russia knows that can change in a heart-beat. Bush has pushed the Russians to this tipping point and if we proceed with our plans, they''''ll have missles in Venezuela pointing at us. Bush has brought this on, make no mistake about it!


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Posted by aldon61

AHAHHAHAHA hand wringing dem''s is there any other kind? "Cowboy up Cupcakes" (get a backbone)

[scb111_1]

Presiden Bush should have had the military take out these Dumb-O-Crats who where the CEOs of this "failed" financial institutions years ago before they drove these companies into the ground and cause this financial crisis!!!

[labrat9999]

And by the way, we wouldn''t be bailing out financial institutions if the retared GOP and Republicans hadn''t messed everything up with their "you don''t need to regulate the industry" attitude that allowed these greedy CEO''s to ruin us. And I''ll second the other person comment about Republicans and their attitude about buying stuff they can''t afford, and paying with credit they don''t have. You want to buy, you save and pay for it!!

[scb111_1]

All these Dumb-O-Crats should have been rounded up years ago by the military and sent to "GITMO" with the terrorists before they could drive them financial institutions into the ground and caused all this financial crisis!!!

[cheteunice]

As one automobile manufacturer CEO suggested, is Obama willing to work for $1 a year until the economy recovers? And what about Biden?

[used2bfedup1]

AHAHHAHAHA hand wringing dem''''''''s is there any other kind? "Cowboy up Cupcakes" (get a backbone)

Posted by louiville2

I may be wrong here but arent the neo-cons the cup cakes here? They are the ones who have been yelling the sky is falling the sky is falling for 8 years.

[demdump]

"2.5 million jobs....Obama is looking at a wide range of projects, such as building new roads and repairing old ones, improving airports, and constructing schools and sewage treatment plants."

Now we''re talk''in let me get my shovel ready.

[louiville2]

So I take it that you like Russia having more world influence?

You can thank Bush for that.


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Posted by melchg

Right you should stop reading the Neo-Marxist talking points. It''s just a couple of ships pleeease, Obama will have then sail into New York harbour when he becomes president.

[used2bfedup1]

If we hadnt started Iraq we would have an extra trillion to throw in the kitty as well as probably a more stable middle east.

[scb111_1]

And by the way, we wouldn''''t be bailing out financial institutions if the retared GOP and Republicans hadn''''t messed everything up with their "you don''''t need to regulate the industry" attitude that allowed these greedy CEO''''s to ruin us. And I''''ll second the other person comment about Republicans and their attitude about buying stuff they can''''t afford, and paying with credit they don''''t have. You want to buy, you save and pay for it!!

Posted by labrat9999 at 01:31 PM : Nov 25, 2008

President Bill Clinton signed all these "deregulation" legislation in 1999, so please get yours facts straight.

Financial Services Modernization Act of 1999

http://www.wsws.org/articles/1999/nov1999/bank-n01.shtml

[louiville2]

I may be wrong here but arent the neo-cons the cup cakes here? They are the ones who have been yelling the sky is falling the sky is falling for 8 years.


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Posted by used2bfedup1

It''s not the sky it was the trade centers remember Neo-Marxisim must mean loss of memory along with back bone.

[aldon61]

where does "the president-elect" stand on Iraq, Pakistan, Iran, China, or Russia?


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Posted by jgg0002 at 01:29 PM : Nov 25, 2008
I''ll answer best as I can: He''s for drawing down our troops in Iran, going after terroists/Taliban in Afghanistan, and has openly stated he won''t hesitate to go into Pakistan if the situation warrants it. Obama wants to capture or kill Osama Bin Laden, as most of us wish too. As far as Russia, China and Iran, he has indicated he is willing to negotiate with all three. China will have to move towards the center on human rights issues and be prepared to adjust their currency to a realistic level. Iran and Russia both need to be more supportive of an eventual mideast solution between palestanians and Israel.

[scb111_1]

All the Dumb-O-Crats are the reasons we have this financial crisis today. But since they won''t take responsiblity for what they created, there will be "NO" solution from the Dumb-O-Crats in the next four years!!!

[cheteunice]

How about Obama working for $1 a year until the economy recovers? That would be a cost saving effort right there!

[used2bfedup1]

President Bill Clinton signed all these "deregulation" legislation in 1999, so please get yours facts straight.

Financial Services Modernization Act of 1999

http://www.wsws.org/articles/1999/no
v1999/bank-n01.shtml

Posted by scb111_1 at 01:35 PM : Nov 25, 2008

That may be true, the issue was forced by the republican congress though.

That point is neither here nor there the problem did not start until after Clinton left in 2000 did it? Things were great at the end of the Clinton admin with budget surpluses etc... The golden years.

The problem got bad during the Bush years and he let it get to an emergency level.

Who knew when Clinton signed that bill the Greed and deceit levels of these banks?

[scb111_1]

Obama will raise taxes on everyone to 50%, but that will be a "cut" from his first proposal of 70%. Thanks Obama!!!

[mandylou4u]

Mcliar,
That was great! so true

[aldon61]

He may as well wait until June or July when Iran likely will vote out their nutjob leader as well and elect a more moderate or a liberal President.


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Posted by melchg at 01:41 PM : Nov 25, 2008

I pray that happens!

[used2bfedup1]

Posted by Rowdydfw at 01:38 PM : Nov 25, 2008

Can you point to one speech where Obama said he was going to disarm us? No i didnt think so...

He just wanted to get us out of wars that were BS anyway.

[scb111_1]

Barack Obama bad for small-businesses, bad for US Workers and BAD for America!!!

[cheteunice]

Mcliar, There''s more left in our wallets now after Bush, then there will after 4 years of Obama!

[lady_organs]

Wasteful to Obama is good in the eyes of Jesus.

[tipsyinct]

How about Obama working for $1 a year until the economy recovers? That would be a cost saving effort right there!

Posted by stlouisman3 at 01:38 PM : Nov 25, 2008

How about you work for $1 a year until the economy recovers? What about CEO''s that make Millions a year now work for $1 a year until the economy recovers? Don''t be stupid. The CEO who said that probably makes more in a week than Obama will in his entire term.

[aldon61]

Mcliar, There''''s more left in our wallets now after Bush, then there will after 4 years of Obama!


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Posted by stlouisman3 at 01:43 PM : Nov 25, 2008

Nothing from nothing still equals nothing! It''s impossible to have less!

[mandylou4u]

So who out there has esp? How can you already know what Obama is going to do when he becomes president in action? Are you so stubborn that you can''t handle a little change for the better? It has to be better than the last 8 years we just struggled through.

[used2bfedup1]

It''''s pretty funny to hear scb111_1 blather on about taking responsibility for what Democrats supposedly created when we left them a strong economy, a budget surplus, and a country at peace wih no crime and they''''ve ttally screwed it up and now say, "The Democrats did it!"

So much for the self-appointed "Party of personal responsibility."

Posted by Mcliar at 01:43 PM : Nov 25, 2008

So True!

[nursehope]

Obama will raise taxes on everyone to 50%, but that will be a "cut" from his first proposal of 70%. Thanks Obama!!!

Posted by scb111_1
*****************************************************
If he has to raise taxes to support the failing economy and the massive deficits caused by the Bush team...you can send "W" a thank you note. Money doesn''t grow on trees, it comes from China!