February 15, 2009

$2 TRILLION BUDGET DEFICIT LOOMS

President Barack Obama wangled a $787 billion “stimulus” package early Saturday morning from a Democrat Congress – ostensibly to boost a sagging economy.

We can be sure the total will latch onto a $2 trillion budget deficit this year.

Forgive us for reminding you again of a pungent quote attributed to the late Illinois Senator Everett Dirksen: “A billion here, a billion there, and pretty soon it adds up to real money.”

Mr. Obama told a delegation of 44 business leaders Friday at the White House that he will hold a “fiscal-responsibility summit” on February 23 – and issue a “budget blueprint” three days later.”

He defended his stimulus plan as creating jobs by financing “shovel ready” projects of states – such as roads, bridges and public buildings.

MAKE WORK PAY

Main thrust of Obama’s plan is the “Make Work Pay” tax credit. It could save individuals up to $400 -- and to couples up to $800.

Such “make-work” talk gives heebie-jeebies to old-timers who struggled through the 1930s Great Depression – but benefited from President Franklin D. Roosevelt’s Work Progress Administration (WPA) and Civilian Conservation Corps (CCC.)

Roosevelt’s make-work programs were helpful in sustaining poor, untrained, workers. However, it was the Second World War -- and Japanese surprise attack on Pearl Harbor – that brought full employment.

FISCAL DISCIPLINE

Obama told the business leaders on Friday:

“It’s important for us to think in the mid-term and long term – and over that we’re going to have to have fiscal discipline. We are not going to be able to perpetually finance the levels of debt that the federal government is currently carrying.”

The President has appointed Peter R. Orszag to be the White House budget director and tasked him to enforce strict budget rules.

The principal directive is that “non-emergency” spending increases be offset by equal cuts in spending – or by tax increases on the top half of wage earners.

Though the recent presidential election is history, Mr. Obama blames the current economic circumstances on President George W. Bush -- and by costs of wars in Iraq and Afghanistan.

Never mind the burdens imposed on Americans by the terrorist attacks of September 11, 2001 and thereafter.

BLUE DOGS

President Obama also met last week with 44 “Blue Dog” Democrats who often vote with fiscally conservative Republicans. (There must be 44 chairs in the White House conference room.)

This group of legislators favor a commission to deal with long-term economic problems.

The Senate approved the $787 billion economic stimulus package 60-38 – including three Republican centrists. The 60 yea votes prevent future filibusters against Democrat measures.

In the House, not one Republican voted for the 1,073-page bill. Seven Democrats voted nay.

House Speaker Nancy Pelosi (D-Calif.) called the vote “historic and transformational.” She also castigated House Republicans whom she described as having “a do-nothing approach.”

Senate Majority Leader Harry Reid (D-Nev.) pushed approval of the bill three days before House approval.

OBAMA’S FIRST BILL

Mr. Obama says he will sign the bill “with ceremony” on Monday.

By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist