Obama Vows To Halve Deficit In 4 Years

President Refuses "To Leave Our Children With A Debt They Cannot Repay"

(CBS/AP)  Urging strict future restraint even as current spending soars, President Barack Obama pledged on Monday to dramatically slash the skyrocketing annual budget deficit as he started to dole out the record $787 billion economic stimulus package he signed last week.

"If we confront this crisis without also confronting the deficits that helped cause it, we risk sinking into another crisis down the road," the president warned, promising to cut the yearly deficit in half by the end of his four-year term. "We cannot simply spend as we please and defer the consequences."

He said he would reinstitute a pay-as-you-go rule that calls for spending reductions to match increases and would shun what he said were the past few years' "casual dishonesty of hiding irresponsible spending with clever accounting tricks." He called the long-term solvency of Social Security "the single most pressing fiscal challenge we face by far" and said reforming health care, including burgeoning entitlement programs, was a huge priority.

Wall Street seemed unimpressed by all the talk. The Dow Jones industrials dropped 251 points for the day.

The president said Republicans who say his stimulus plan is full of waste are just wrong, reports CBS News correspondent Chip Reid.

"Roads and bridges and levees and dams that will enhance the quality of life in your state but also make it economically competitive - that's not wasteful," Mr. Obama said.

Louisiana's Republican Gov. Bobby Jindal says he'll reject about $100 million in unemployment benefits, arguing it would force states to raise business taxes. But the fact is he's accepting some $4 billion of stimulus money for other projects, reports Reid.

Despite Republican criticism, the public is optimistic about the stimulus plan. A new CBS News/New York Times poll shows 53 percent think it will make things better; just 13 percent say it'll make things worse.

Mr. Obama goes before Congress and the nation Tuesday night to make the case for his agenda and his budget plans, which the White House is to release in more detail on Thursday.

On Monday, he sought to prepare people for tough choices ahead.

He summoned allies, adversaries and outside experts to what the White House characterized as a summit on the nation's future financial health one week after triumphantly putting his signature on the gargantuan spending-and-tax-cut measure designed to stop the country's economic free fall and, ultimately, reverse the recession now months into its second year.

At the same time, federal regulators announced a revamped program to shore up the nation's banks that could give the government increasing ownership. It was the administration's latest attempt to bolster the severely weakened banking system without nationalizing any institutions, which the White House has said it does not intend to do.

Mr. Obama said there would be another summit next week on health care reform. ``It's not that I've got summititis here,'' he added wryly.

By the president's account, the administration inherited a $1.3 trillion deficit for the current fiscal year from the Bush administration - that's the figure Mr. Obama says he'll cut in half - and the stimulus law, coupled with rescue efforts for ailing automakers, the financial industry and beleaguered homeowners will raise this year's red ink to $1.5 trillion.

The administration hopes to trim the deficit by scaling back Iraq war spending, raising taxes on the wealthiest and streamlining government.

"We are paying the price for these deficits right now," Mr. Obama said, estimating the country spends $250 billion - one in every ten dollars of taxpayer money - in interest on the national debt. "I refuse to leave our children with a debt that they cannot repay."

As an example of a purchasing process "gone amok," the president said he had ordered a thorough review of his new fleet of Marine One helicopters, now far over budget. He was asked about the fleet by former presidential rival John McCain at the end of the White House meeting.

"The helicopter I have now seems perfectly adequate to me," Mr. Obama said wryly to laughter. "Of course, I've never had a helicopter before. So, you know, maybe I've been deprived and I didn't know it."

Earlier, Mr. Obama met with Republican and Democratic governors who are poised to benefit from his unprecedented emergency economic package. He told the chief executives, attending a three-day National Governors Association meeting in Washington, that he would begin distributing $15 billion to their states within two days to help them with Medicaid payments to the poor.

The recession has strapped state budgets, in particular in regard to the Medicaid program that is jointly underwritten by states and the federal government. In total, states will eventually receive $90 billion for Medicaid from the new law.

One month into office as the economy continues its downward spiral, Mr. Obama is seeking to balance twin priorities: turning around dismal conditions with a huge injection of spending while lowering huge budget deficits. With his re-election race just a few years away, he also has an interest in avoiding being labeled as a big-government, big-spending Democrat.

The White House meetings opened a jam-packed White House week that includes a State-of-the-Union-style address to Congress Tuesday night and the president's first budget proposal on Thursday. A common thread: addressing current economic turmoil while controlling the country's long-term costs.

"This will not be easy," Mr. Obama told his White House audience, which included congressional leaders, 2008 GOP presidential nominee McCain, and Republican Sen. Judd Gregg of New Hampshire, who recently backed out as Obama's commerce secretary.

Mr. Obama launched the summit with addresses from two economists: Mark Zandi of Moody's Economy.com and Robert Greenstein of the Center on Budget and Policy Priorities.

Zandi, who advised McCain's presidential campaign, said policymakers need to respond promptly and aggressively to the struggling economy and the disarray in the financial system. Greenstein described the nation's long-term fiscal picture as "unsustainable," driven by ever-rising medical costs. He called for health care reforms as well as spending and revenue policy changes.

After Mr. Obama spoke, attendees broke into five groups to brainstorm how to address costly areas including military weapons, Social Security, health care and tax reform.

During one, Rep. Henry Waxman, D-Calif., said, "Our deficit really cannot be controlled until we figure out how to deal with health care costs." At another, House Republican leader John Boehner of Ohio proposed raising the Social Security retirement age to 70 over a number of years.

Afterward, Mr. Obama emphasized areas where he said there was agreement and consensus on moving forward in a bipartisan way, including that the country must ensure people have retirement security, that the tax process must be simplified and that the existing budgeting process isn't working. He also directed his team to pull together a final report from the sessions in 30 days.

"I appreciate that, while we may have different opinions, there's a renewed willingness to put some concrete ideas on the table, even on those issues that are politically tough. And that's real progress," Mr. Obama said.

[76TammySC]

I read this and thought it was funny....and true, so I borrowed it!
Shortly after class, an economics student approaches his economics professor and says, "I don't understand this stimulus bill. Can you explain it to me?" The professor replied, "I don't have any time to explain it at my office, but if you come over to my house on Saturday and help me with my weekend project, I'll be glad to explain it to you." The student agreed. At the agreed-upon time, the student showed up at the professor's house. The professor stated that the weekend project involved his backyard pool. They both went out back to the pool, and the professor handed the student a bucket. Demonstrating with his own bucket, the professor said, "First, go over to the deep end, and fill your bucket with as much water as you can." The student did as he was instructed. The professor then continued, "Follow me over to the shallow end, and then dump all the water from your bucket into it." The student was naturally confused, but did as he was told. The professor then explained they were going to do this many more times, and began walking back to the deep end of the pool. The confused student asked, "Excuse me, but why are we doing this?" The professor matter-of-factly stated that he was trying to make the shallow end much deeper. The student didn't think the economics professor was serious, but figured that he would find out the real story soon enough. However, after the 6th trip between the shallow end and the deep end, the student began to become worried that his economics professor had gone mad. The student finally replied, "All we're doing is wasting valuable time and effort on unproductive pursuits. Even worse, when this process is all over, everything will be at the same level it was before, so all you'll really have accomplished is the destruction of what could have been truly productive action!" The professor put down his bucket and replied with a smile, "Congratulations. You now understand the stimulus bill."

[benighse]

Hey, BUSH "Halve'd" the stock market before he left; no reason Obama can't halve the deficit he was left in 4 years---hope so anyway.

[canken1025]

If you double the deficit, then reduce it by half you are right where you started from. I think I could be confused. How does this help us?

[Jimmy371]

What a crock of s#%t. Quadruple the deficit, then promise to cut it in the future? What about cutting congressional junkets on military planes NOW? Cut extravagant White House dinner parties NOW? Balack Obama calls for conservation, but we don't see him or his family setting any kind of example.

This is the agent of hope and change? How about the agent of lies and business-as-usual?

[watsonfrank]

What may not be impossible, may be, more likely, improbable. It is one thing to state something, it is another to state the facts. FACTS: The US government is in hoc to China and other countries; it cannot meet the payments on the interest that has/is accumulated on its debts; Income and other types of taxes coming into the government coffers doesnt cover the outgoing expenditures. In short, a trillion dollor debt is not going away by unbridled, uncontrolled government spending.

[roystoll2]

If you liberals think that you can stop all of the wars or that the wars are all our fault, think of this. Can you stop all lawsuits? Wars are exactly the same except on a national basis. I am not pro war but I am a realist. Cutting our defense spending and negotiating until the cows come home isn't going to work either. It would be nice if negotiating would work. It's like the liberals want to tickle the terrorists with a feather until they confess. I'm not real sure but I think this is a liberal long shot. Obama already lied on this one anyway. "Extraordinary methods of questioning may be allowed" Do liberals really believe the "fairy tale" lies that come out of his mouth?

[roystoll2]

You can always always tell if you are talking to a Democrat or not. Simply point out one of the lies that Obama has told and wait for a reply. I will guarantee that their reply will be: "so what, all politicians lie." Just try it and see if it doesn't work. It has worked every single time with any person that I suspected that voted Democrat.. Now next question. DO YOU HONESTLY THINK THAT ALL POLITICIANS LIE? I told my daughter that McCain hadn't lied. This was last week and she hasn't given me any examples yet. Does anybody have any examples?

[ireallydoknow]

Sounds like our fella is a Repulican now -- gonna cut out services and reduce the impact of government. Who is he really?

[MILESPRAHA]

IMPOSSIBLE TO DO IT.IF YOU STOP ALL THE WARS IRAQ AND AFGHANISTAN YOU CAN REACH ENOUGH.

[roystoll2]

Obama all ready canceled some domestic offshore oil leases which is showing his true colors. 85% of the American public signed petitions in support of drilling here and drill now to use our domestic oil rather than buying imported oil. All of the "pie in the sky" alternative energy programs will not help for years so we need domestic oil for the interim. We could use natural gas in our vehicles nationally if we set up service stations equipped to fill up with it. It costs very little (comparitively) to switch a vehicle over and there are very few negatives other than Obama's Wall Street oil speculators couldn't control the price like they can with oil. Obama will have $5.00 gas within six months, mark my words.

[roystoll2]

Did anybody see the "FACT CHECK" report on Obama"s speech last night? It was from the AP and points out EIGHT LIES (OR DESCREPANCIES) IN HIS SPEECH. This guy is the lyingest political figure that I have ever seen even counting Roland Burris. I even think that the media is catching on. He doesn't even know who invented the automobile and he is going to "fix" the economy. The only thing he has ever "fixed" was the election. Also, as more and more time passes it is more apparent that the Democratic party was almost wholly responsible for the financial crisis. Surprise!...Bill Clinton and Robert Rubin, his Secretary of the Treasury, DEREGULATED THE BANKS ENDING THE BARRIERS BETWEEN REGULAR BANKS AND WALL STREET BANKS. bLAME THAT ON THE REPUBLICANS NOW, YOU LIBERAL LOSERS! BILL CLINTON, ROBERT RUBIN, BARNEY FRANK, CHRIS DODD, FRANKLIN RAINES, MAXINE WATTERS, HERBERT MOSES, BARACK OBAMA. ANY REPUBLICANS IN THIS GROUP!!!!?

[l-a-m-e-duck]

Rowdy has one it runs on a 12 volte diehard

[biker-n-oh]

U 2 Surgeon....

[biker-n-oh]

Hey ducky, don't know what yer talkin bout my friend...

[insurgeon_1]

Anyway another example would be a thingamajig.....

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Posted by Biker-N-OH at 08:16 PM : Feb 23, 2009

I gotcha. Learn something new everyday. Thanks Biker. Although, I think "battery-powered doogieflopper" can mean only ONE thing. LOL Have a great one.

[biker-n-oh]

Agree???

[l-a-m-e-duck]

Biker is that the ones that looked like a babies arm with a apple in it,s hand

[biker-n-oh]

But I gotta tell you that doogieflopper is some funny stuff regardless of how you use it.

[biker-n-oh]

Posted by Insurgeon_1 at 08:07 PM : Feb 23, 2009


OK Insurgeon, I can tell you what I know about a doogieflopper. It is a lamens term simalar to that of a "wigit". I'm a tool and die maker by trade and the term doogieflopper was very commen in the shop. I just applied that particular terminology to a sexxxxual inuendo for sister Hillary. Anyway another example would be a thingamajig.....

[l-a-m-e-duck]

WOLFSNUTS does the word mommy bother you does it if it does i will keep that in mind