- Running on empty: EPA slashes biofuel goals because of ethanol shortage
- ‘Gay Jeans’ that fade into rainbow-colored denim created
- Divided court strikes down big porn award
- Jimmy Carter: Don’t hurt Russian people with sanctions
- Oldest ex-MLB player dies in Cuba, 2 days shy of 103rd birthday
- ‘Top Gun’ for drones: Squadrons of carrier-based killers have Navy’s approval
- Bill Clinton to endorse Charlie Rangel for re-election
- Pfc. Bradley Manning is now Pfc. Chelsea Manning: Court says so
- Secret base U.S. special forces used to train Libyans now under terrorist control: report
- 9th suspect in N.C. kidnapping turns self in to FBI
Obama vows cutback in Social Security
President-elect Barack Obama vowed Wednesday to tackle Social Security and Medicare spending as this year’s deficit was projected to reach $1.2 trillion and with Congress preparing to run that figure even higher with its economic recovery package.
Mr. Obama didn’t say how he would control the two major entitlement programs, instead promising details in February. But even raising the issue was a bold move, coming just four years after his own party helped block President Bush’s Social Security reform efforts.
“We expect that discussion around entitlements will be a part, a central part, of those plans,” Mr. Obama told reporters at a brief press conference in Washington called to announce his pick for a chief accountability officer, a new position designed to scour the federal budget for failed programs and wasteful spending.
The Congressional Budget Office announced a projected fiscal 2009 deficit of $1.2 trillion even if Congress doesn’t enact any new programs. But Mr. Obama and congressional leaders already have called for a spending bill totaling nearly $1 trillion more and spread over two years, arguing that’s the best way to create jobs.
Republicans and Democrats on Capitol Hill were staggered by the deficit number, with some calling for renewed restraint and others placing blame.
About the only person who was silent on the deficit projection was Mr. Bush, who took office facing a surplus but who saw spending balloon and the country notch the highest deficits on record.
The White House referred calls about the deficit to its Office of Management and Budget, which did not issue a public comment on the new projection.
Democrats said the president should own up to what they said was his legacy.
“I’ll give President Bush the gold, the silver and the bronze for winning the three largest deficits in this nation’s history before this one,” said Sen. Kent Conrad, North Dakota Democrat. “But this goes in its own category — this is truly olympian.”
Mr. Obama and Congress are trapped between a desire to get spending under control and a need to boost the economy. They have concluded in the short term that stimulating growth will require more spending on job creation and national infrastructure such as bridges and school facilities.
Mr. Obama will make that case in a speech Thursday at George Mason University, where he will detail what has been dubbed the American Recovery and Reinvestment Plan. The details of his plan, which aims to save or create more than 3 million jobs, are still in the congressional negotiation phase.
Some Republicans are warning that the spending must be limited to one-time expenses that don’t add to deficits in the long term, while other Republicans are arguing for tax cuts rather than more spending to spur the economy.
Budget hawks and financial analysts warn that an $850 billion package could destabilize the financial markets if Mr. Obama and Congress don’t also prove they want to tackle the deficit.
Mr. Conrad, the chairman of the Senate Budget Committee, and Sen. Judd Gregg of New Hampshire, the committee’s top Republican, issued a joint statement this week saying long-term entitlement reform must be coupled with immediate spending in order to retain the confidence of world financial markets.
“As we address the economy, we need to simultaneously signal to the markets that we are serious about restoring fiscal discipline and putting our budget back on a sound long-term path. Linking these short-term and long-term plans is the best way to instill global confidence in the U.S. financial system,” they said.
About the Author
Christina Bellantoni is a White House correspondent for The Washington Times in Washington, D.C., a post she took after covering the 2008 Democratic presidential campaigns. She has been with The Times since 2003, covering state and Congressional politics before moving to national political beat for the 2008 campaign. Bellantoni, a San Jose native, graduated from UC Berkeley with ...
Raised in Northern Virginia, David R. Sands received an undergraduate degree from the University of Virginia and a master’s degree from the Fletcher School of Law and Diplomacy at Tufts University. He worked as a reporter for several Washington-area business publications before joining The Washington Times.
At The Times, Mr. Sands has covered numerous beats, including international trade, banking, politics ...
- SANDS: Fields set for next month's U.S. championship chess tourneys
- SANDS: High-powered Webster claims second straight college chess crown
- SANDS: Rematch point: Chess champions, challengers often meet again
- SANDS: Steady Anand earns rematch with Carlsen for world chess title
- Anand earns rematch against Carlsen for chess title
Latest Blog Entries
By Andrew P. Napolitano
Obama's veil of secrecy is pierced
- Pentagon plans to replace flight crews with 'full-time' robots
- 'Top Gun' for drones: Squadrons of carrier-based killers have Navy's approval
- Nevada rancher Cliven Bundy hailed as patriot, ripped as lawless deadbeat
- Kansas will nullify local regulation of guns
- America is an oligarchy, not a democracy or republic, university study finds
- Obama avoids 'red line' for China; prepared to impose tougher sanctions on Russia
- Brain surgery victim struggles with Obamacare: 'It's scary'
- 2-week truce for hot sauce maker, California city
- Twitter blocks accounts critical of Turkish government
- U.S. pilot scares off Iranians with 'Top Gun'-worthy stunt: 'You really ought to go home'
Top 10 handguns in the U.S.
Celebrity deaths in 2014