1984: Big Brother Plans To More Aggressively Sell Attempts To Create Depression As Attempts To Avoid Depression

Mar 8, 2009 10 Comments ›› Pat Dollard

Politico:

Peter R. Orszag, director of the White House Office of Management and Budget, signaled Sunday that the administration plans to stand up fiercely to critics of its economic policies despite a deepening recession.

Taking the administration’s hardest line yet, Orszag in two appearances on the Sunday shows went after Republicans for their budget proposals, repeatedly asking them to put up or shut up.

“I would urge you to invite the Republicans on this show and ask for their specifics, and then compare them head-to-head,” Orszag told John King, anchor of CNN’s “State of the Union.”

“Because we are proposing a change in course in which we are not only fiscally responsible, but we are investing in education, we are investing in energy, and we’re investing in health care.”

Orszag also declared: “We’ve been down a path that has not been working. We’re proposing a change in course. And with regard to the criticisms, it’s almost like, as Ronald Reagan said, ‘there they go again.’”

Returning to health care in a later appearance on CBS’s “Face the Nation,” Orszag also predicted boldly: “I think there’s a lot of momentum behind health care. We’re gonna get it done this year.”

The budget director responded to a question about the persistent stock market decline under President Obama by pointedly noting that the economy had begun to falter under the Bush administration.

“Job losses began in January of 2008, the stock market started declining in October of 2007,” he said to host Bob Schieffer “This has been, you know, eight years in the making and, again, it’s going to take some time to work our way out of it.”

House Republican Leader John Boehner of Ohio, appearing after Orszag on “Face the Nation,” replied: “American families are tightening their belt, but they don’t see government tightening its belt. And I think we can get through this year and lead by example, and show the American people that the government can go on a diet as well. … Their budget spends too much, it taxes too much and it borrows too much from our kids and grandkids.”

On CNN, House Republican Whip Eric Cantor of Virginia said: “Director Orszag and others say, look, we’ve inherited these trillions dollars of deficits. Well, if you’ve got a situation like that, how in the world should you be going and make it worse? Families are not doing that.”

Despite the growing economic problems, Orszag said that the administration does not plan to constantly revise projections that have proven too optimistic.

“Our projections are in line with the Congressional Budget Office’s and other outside experts,” he said. “I don’t think we should be chasing our tail, constantly revising assumptions. … We’ll have a mid-session review later in the year [July]. We’ll have an opportunity to revise the assumptions at that point.”

In a later tail-chasing reference, Orszag added: “It’s not constructive to constantly be chasing your tail every time new data comes in, and revising all of the numbers.”

On CBS, Orszag dodged when he was asked repeatedly about congressional criticism over the tax increases included in the budget to pay for health care and whether the president was open to other funding mechanisms

“We think this is the best way of proceeding, but of course other people have ideas and they should put them on the table,” Orszag told Schieffer.

Orszag reiterated that Obama does not plan to postpone a rewrite of the nation’s health-care financing system despite depression-like economic conditions.

“We have to get health-care reform done this year,” Orszag told King. “What we have said is health reform has to happen this year, and it has to be deficit neutral. So we will work with the Congress to make sure that those two things happen.”

Pressed on whether “deficit neutral” might mean the president might seek more revenue, Orszag said: “We have said this is a significant down payment, but more may well be necessary and we will work Congress to put in either additional savings from Medicare and Medicaid, or additional revenue.”

But the director pointed out: “Let’s clarify: The health reserve – that significant down payment that we put on the table – is partially from revenue, but we also have very substantial efficiency improvements in Medicare and Medicaid itself.”

Talking to King, Orszag fought back against the specific critique that the proposed change in the charitable contribution deduction for wealthy Americans that is designed to pay for health care would discourage giving.

“All we’re proposing is to return the tax break for charitable contributions to the level that existed at the end of the Reagan administration,” Orszag said. “Only 1.2 percent of taxpayers would even be affected – very small effects – and it would provide revenue to fund a health effort.”

Under persistent questioning from King, Orszag again and again defended the pork and earmarks in the budget now before Congress, which was largely written last year.

“We’re stepping in to the ninth inning,” Orszag told the Red Sox fan. “You can’t change the rules of the game. … We’ve been in office less than eight weeks. … We need to get this out of the way and move on to serious business that will include next year, when we are in charge – when you can hold us responsible in [a] much different ballgame.”

Asked about the possibility of a second stimulus bill, Orszag deflected: “Look, we just got the recovery act into law. The money is starting to flow. Let’s give it some time to work.”