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Obama Administration To Propose Freezing Non-Military Discretionary Spending

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President Obama will propose freezing non-security discretionary government spending for the next three years, a sweeping plan to attempt deficit reduction that will save taxpayers $250 billion over 10 years.

When the administration releases its budget next week, the discretionary spending for government agencies from Health and Human Services to the Department of Treasury will be frozen at its 2010 level in fiscal years 2011, 2012 and 2013.

A senior administration official detailed the move, speaking on a condition of anonymity because Obama will announce his decision during his State of the Union address Wednesday night.

The cuts would target "duplicative," "ineffective" and "inefficient" spending withing government, the official said on a conference call with reporters.

"This is not a blunt, across-the-board freeze," the official said, adding that some agencies will see spending increases while some will see spending cuts as the total remains constant.

Exempted from the freeze would be Pentagon funding, and the budgets for Veterans Affairs and Homeland Security.

"We do need to reflect the fact that we remain at war," the official said, noting the president was able to win several battles on cutting Pentagon spending.

The official declined to discuss specifics but said the new plan would save taxpayers $250 billion over 10 years.

If the changes are passed, the non-security discretionary spending will be at its lowest level in 50 years. It currently is $447 billion for fiscal year 2010, and the administration wants it kept at or below that level through 2013, the official said.

The official said the budget to be released Monday will reflect the proposal but still would invest in Obama's priorities.

The officials said the process is "healthy," and framed it as similar to how families make decisions about where they put their household dollars.

The official said the average proposed increase in administration budgets dating back to 1993 was 3 percent, and the average increase in budgets enacted was 5 percent. The official said to compare that with "effectively zero," which is what the Obama administration is proposing.

The decision was made in part after Obama called on his Cabinet members to find cuts in their agencies, and "lots of meetings and effort were required in order to achieve this proposal."

But nothing is for certain, as Congress must pass individual appropriations bills in addition to approving the budget blueprint.

The official said Obama is "hopeful" Congress would abide by the total and agree with the administration's spending priorities.

Late Update: Republican leadership staffers are emailing this story from The Hill suggesting the Obama pitch is "DOA." The piece quotes members of the budget committee dissing the plan when it was floated by the White House.

Comments (164) | Join the Conversation!

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January 25, 2010 8:12 PM   

how clueless!

seriously

Non-Military Discretionary Spending??

People want jobs!! and Health Care and change

this sounds like a Republican Lite proposal

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January 25, 2010 8:23 PM    in reply to smartone

It sounds like Grover Norquist! Have they intimidated this guy or what!

What the hell does he think cuts in agencies means? JOB CUTS!

"The officials said the process is "healthy," and framed it as similar to how families make decisions about where they put their household dollars." -- Did he get that quote from Tim Pawlenty?! That's exactly what Tim says when he's going to slash social spending.

So what's President Reagan going to do? Make all the Democrats in Congress the bad guys?

Vote NO in 2012.

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January 25, 2010 8:24 PM    in reply to bluebell

Jobs are not discretionary. Stuff like this is normally done to SAVE jobs.

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January 25, 2010 8:29 PM    in reply to dtOZONE

Assuming that any agency is going around buying furniture, you don't think the people selling furniture need jobs? Assuming the government employee is not already getting the government rate at the hotel, do you think hotels don't need business in this economy?

Reducing government spending is just totally stupid because it reverses what fiscal stimulus is supposed to do. Cluelessness reigns.

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January 25, 2010 8:31 PM    in reply to bluebell

That's sort of a stretch.

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January 25, 2010 8:33 PM    in reply to bluebell

"Reducing government spending "

It's not currently a reduction, it's a lack of increase. Until we have some inflation, it means nothing.

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January 25, 2010 9:52 PM    in reply to AnswerFrog

Yes the cost of "stuff" is pretty static. Health Care is a great example, like when is the last time that increased...

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January 26, 2010 12:43 AM    in reply to henk

19.7% last week. Not to mention oil, gas and energy costs.

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January 25, 2010 8:27 PM    in reply to bluebell

No, budget cuts mean not filling vacancies, early retirement packages, travel restrictions, etc. It does not necessarily mean job cuts at all. That is standard procedure.

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January 25, 2010 8:42 PM    in reply to dswx

If you don't fill a job that's one less job available for the nearly 20% of people unemployed or underemployed.

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January 25, 2010 9:55 PM    in reply to dswx

Standard procedure? In a Republican utopia maybe, but when was the last time the Federal Governement tried this?

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January 26, 2010 5:11 AM    in reply to dswx

Yup. Worked great for Hoover and FDR's fear induced freeze of 1937.

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January 25, 2010 10:14 PM    in reply to smartone

Isn't it marvelous how "devoting an ever-larger proportion of our budget to endless unwinnable wars" turns into voter-pleasing populist gold?

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January 26, 2010 12:41 AM    in reply to Alan in SF

The supreme court fixed that; they no longer need to please the voters, only the corporations. Our vote and voice is now meaningless. The corporations will love this, more money for their no-bid contracts.

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January 26, 2010 12:44 AM    in reply to smartone

Bingo. There is no difference between the parties. The r and d are for political theatre. They all work for the same corporate masters.

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January 26, 2010 5:09 AM    in reply to smartone

It's not Republican Lite. It's Republican.

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January 26, 2010 9:39 AM    in reply to smartone

I completely agree! This is ridiculous, childish and immature.

I don't believe there's any economic basis for freezing spending during a recession. IN so far as the political fallout; firstly, it will garner NO GOP support, Secondly, the left will bail and thirdly (most importantly) - moderates and independents will flee a leader for sweeping judgment, pianting into corners and unparalleled whimpiness (sp).

I'm mortified.

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January 26, 2010 10:24 AM    in reply to smartone

There's no duplicative or waste in military spending? What the hell is wrong with this man? The amount of money spend has a direct relationship to waste, especially in the military. I am a Dem, but becoming a anti-Obama dem.

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mcc

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January 25, 2010 8:13 PM   

I guess it depends on the details here. What exactly is the difference between "discretionary spending" and "spending"?

Pulling money out of some places and putting more money into economic stimulus and creating jobs sounds like a pretty reasonable idea.

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January 25, 2010 8:18 PM    in reply to mcc

Discretionary means non-necessary. For example, new desks for an office, are discretionary. Staying in a cheaper hotel during business trips is discretionary.

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mcc

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January 25, 2010 8:22 PM    in reply to dtOZONE

Somehow I suspect a slightly different meaning is intended in the context of federal budgets

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mcc

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January 25, 2010 8:25 PM    in reply to mcc

Although it would be pretty funny if it were just this literally

*air force one lands in front of a motel 6*

[Obama] Come on guys, this is fine. They have HBO.

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January 25, 2010 8:27 PM    in reply to mcc

Ah but Air Force One comes out of the Defense budget, which isn't included here.

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January 25, 2010 8:21 PM    in reply to mcc

Agreed. This is smart. The stimulus is in place for job creation. The jobs this administration needs to create should be in the private sector. If holding the line means job cuts for agencies, it could be bad. But if it means tightening the belt -- which has to occur sometime -- without gov't job losses, it's a very smart thing to do and to lay out right now.

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January 25, 2010 8:56 PM    in reply to plynch22

what nonsense.

unless you cut the military budget and end the wars that cost 250 billion dollars ADDITIONAL the rest is all BS.

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January 26, 2010 1:24 AM    in reply to JadeZ

The military budget is destroying this country for good. Every great empire in history has collapsed because of endless wars that drained all resources. We shot up fast, and we are falling even faster.

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pol

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January 25, 2010 8:50 PM    in reply to mcc

per wikipedia:

Discretionary spending is a spending category about which government planners can make choices. It refers to spending set on a yearly basis by decision of Congress and is part of fiscal policy. This spending is optional, in contrast to entitlement programs for which funding is mandatory.

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January 25, 2010 9:39 PM    in reply to mcc

'Discretionary' is, of course, spending that is not mandated by law.

So COLAs (SS, SSSI, SSD, etc.)and other mandated raised are NOT affected. Nor are increases tied to inflation rates by law.

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January 26, 2010 1:37 AM    in reply to GayIthacan

I have a foundation that works with the sick and dying and I see a different story. SSI has been cut by draconian measures, and there are no social programs these clowns won't cut. I live in CA, and I see it every day. I see sick people struggling to get enough food each month with many going hungry on food stamps. I have seen illness put people onto the streets.

The last thing we need is a Herbert Hoover move by Obama. This guy is a joke. He has proved himself a corporate stooge with no backbone whatsoever. Now, he wants to freeze spending. Thousands of people lose their jobs every day due to spending cuts, more go into foreclosure as a result, our economy is in free fall. I don't care what the pundits say, there are empty houses all around me, and people are hurting badly. Many worked for Obama who started singing the republican tune the day he took office.

As for any job security, this situation has proved all of us vulnerable.State workers have been furloughed and have taken a 15% cut in pay due to shorter hours. Now, they want to make it permanent....the pay cuts only....they want the workers to go back to full time at furlough rates.

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January 26, 2010 12:31 AM    in reply to mcc

Discretionary spending is what isn't already legally mandated. For example, Social Security payments are fixed by law -- they aren't budget items year-to-year. The military budget on the other hand is discretionary, and it ought to be cut in half asap.

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January 26, 2010 1:26 AM    in reply to mcc

Shifting the chairs on the deck of the Titanic.

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January 25, 2010 8:20 PM   

We're gonna party like it's 1937.

This kind of thinking will a.) give us a w-shaped recession and b.) not save a single seat in the fall. Needless to say the first guarantees a loss in 2012.

I thought these guys were smart.

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January 25, 2010 9:21 PM    in reply to Davis_X_Machina

You thought wrong.

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January 25, 2010 8:24 PM   

I'll wait till more details come in. I would like to assume this is in line with what he said during the campaign. But this might be something Rethug-lite after the MA fiasco. At this point, nobody really knows.

(* That being said, the term "spending freeze" or "budget reduction" amidst this economy always leaves me feeling uneasy).

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January 25, 2010 10:03 PM    in reply to geofu54

The person you heard talking about Government spending freezes during the campaign was John McCain. Obama, and the rest of the sane world, was against it then.

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January 25, 2010 10:06 PM    in reply to henk

Oh, I know. I just hope this is something to do with his promise of "line by line" effort to cut waste.

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January 25, 2010 10:19 PM    in reply to geofu54

Funny how the Hope talked about during the campaign has turned into hope that he only does something marginally foolish instead of REALLY stupid.

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January 25, 2010 10:46 PM    in reply to henk

If he seriously plans to do something that McCain would've done, if he really wants to do something that guarantees 1937 redux, then it's all over, I'd give up on him.

If on the other hand what he is proposing is to cut waste/redundancy and put that money into job creation or other key areas that matter, then that's something.

I cannot yet decide which. Too little information.

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January 25, 2010 11:31 PM    in reply to geofu54

Your state of willful puzzlement will remain or deepen, since "discretionary spending" includes money the Government spends to disclose its actions to the public.

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January 25, 2010 8:24 PM   

Unreal. I guess it's also time to cut food stamps. Idiots.

Its all the fault of the DFH's!

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January 25, 2010 8:24 PM   

Great. Just what states staring down the abyss of fiscal black holes need right now to kill any chance for a recovery. WHO THE FUCK are the jack-asses giving Obama this fucked up direction and advice?

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January 25, 2010 11:52 PM    in reply to Lestatdelc

Herbert Hoover Obama is quite capable of coming up with this on his own,

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January 26, 2010 1:46 AM    in reply to Lestatdelc

He is making his own decisions, don't buy the nice guy act.
He is continuing the same act from his first day in office; works for corporate interests at the expense of the workers. Look at GM & Chrysler. GM wanted a LOAN, not a bail-out. Instead Obama forced both of them into bankruptcy, they were able to default on hundreds of thousands of pensions, and millions lost their jobs. Now, both companies are flourishing overseas, and Michigan is facing 50% unemployment. For every mfg job lost, 7 others disappear. Obama has set his war on labor and the middle class, and has no FDR intentions.
He is a student of Machevelli (I was too, and I recognize it) and could care less what the people think. He works to please the elite.

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January 26, 2010 9:37 AM    in reply to goldiera

50% unemployment in Michigan? I live in Michigan and unemployment is NOT at 50%. I know facts are a tough thing to take....but lets try to use them, please.

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January 25, 2010 8:26 PM   

Frankly I don't know how these budgeting games work. I suppose you could have a second stimulus but not increase "discretionary" spending.

And also note that since inflation is currently like zero, if not negative, there's no real need for adjustments with the CPI.

That said, I think it is dangerous to go fiscally austere in the current economic environment. Anyone remember 1937? Roosevelt was too eager to tighten belts and it pushed the US into a second depression. We could easily have a double dip recession.

And I think it misses the point. Nobody votes on the deficit, despite what they might say. Did Ross Perot win in 1992? Obama and his advisors need to pivot in a different direction: Attack Republicans and stand up for Democratic ideas. Better messaging, and message discipline, please.

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January 25, 2010 8:29 PM    in reply to AnswerFrog

Nobody votes on the deficit, despite what they might say. Did Ross Perot win in 1992?

No, but he got 20 million votes and created a coalition that helped give Republicans Congress two years later.

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January 25, 2010 8:31 PM    in reply to dtOZONE

No, he just split the GOP and gave Bill Clinton the WH.

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January 25, 2010 9:59 PM    in reply to AnswerFrog

Shorter AnswerF: Reagan Proved Dificits Don't Matter.

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January 26, 2010 1:50 AM    in reply to AnswerFrog

Inflation at zero? Have you looked at your energy bills lately? How about food? Gasoline? Health care? The government leaves those little details out of the inflation statistics they release.
Just like unemployment, they only count certain counties, not all of them. I worked many years in employment, and I assure you my unemployment statistics are closer to 20% than 10%.

The only zero inflation rates are in falling real estate values and wages.

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January 25, 2010 8:31 PM   

Because the Military does a great job at spending their discretionary budget in smart ways...what a ruse.

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January 25, 2010 8:47 PM   

Seriously!? Un-fucking-believable

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January 25, 2010 8:47 PM   

Harry Truman once said something to the effect of: If you give the people the choice between a Democrat that acts like a Republican and a Republican, the genuine article will win every time.

How about this: slash the Pentagon budget by half, end both the wars and use the savings to implement a crash program for green energy on a massive scale.

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January 25, 2010 9:08 PM    in reply to icKx

According to Widem, he's a lefty! :P

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January 25, 2010 9:32 PM    in reply to mike from Arlington

Yeah well, he can stop faking right anytime now then.

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January 25, 2010 11:33 PM    in reply to icKx

A-Fucking-men. The defense budget: The biggest money suck our country operates. At least it keeps us "safe"...

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January 25, 2010 8:52 PM   

Am I the only one out there wondering what exactly he is "freeze"ing?

It's supposed to save $250 billion after 10 years? Really? The national budget is trillions of dollars each year, and he's going to "save" $25 billion a year?

That's only about a 0.5% budget reduction (freeze) per year.

Something isn't adding up here...

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January 26, 2010 1:53 AM    in reply to The BBQ Chicken Madness

That is the way lies work, things don't add up.

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pol

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January 25, 2010 8:52 PM   

Again, per wikipedia:

Discretionary spending is a spending category about which government planners can make choices. [1]See Government spending. It refers to spending set on a yearly basis by decision of Congress and is part of fiscal policy. This spending is optional, in contrast to entitlement programs for which funding is mandatory.

I think you guys are over-reacting.

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January 25, 2010 8:54 PM   

Is this the scalpel that Obama talked about? That's a big freakin' scalpel.

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January 25, 2010 8:55 PM   

Capitulation pure and simple. I have no idea what the people in the White House are thinking anymore. If this indicates apivot to the "center" then the beating we will take in the November midterms will take your breath away.

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January 25, 2010 8:56 PM   

If they cut enough services and "Commission" a SSI budget that reduces pay outs, they might just have enough for a tax cut for the rich and a third "theater of combat" in the "war on terror" when Jeb takes office in 2012.

And who says the CIA...errr...government... cannot plan long term? It is all about euphemisms and real priorities.

Insert Orwellian reference here.

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January 25, 2010 9:18 PM    in reply to busdrivermike

Liberals overreact? You don't say!

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January 25, 2010 8:57 PM   

This is just plain stupid - Obama's plan will save 25 billion a year on a federal budget that is 900 bilion. So we are talking of savings of less than 3% per year. How is 3% savings going to make any difference is beyond me. This is a PR stunt, and it shows Obama has no plans to address the real issues facing us.

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January 25, 2010 9:19 PM    in reply to tytester

Yeah, but he can be seen posturing to make the people who need help the most tighten their belts and do without even more while we feather the nexts of Goldman Sachs' crooks and kiss the ass of the health insurance companies. What's wrong with that?

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January 26, 2010 2:01 AM    in reply to tytester

Divert the public from the truth, no health care reform, expanding wars, giveaways to the rich corporations and top 2%....blah blah blah. The worst truth is the supreme court decision ceding our election process to wealthy corporations. Our voices and votes are now meaningless. Insipid job programs and pretty speeches are the norm.
Now, a spending freeze is being used to divert us even more.

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January 25, 2010 9:00 PM   

What a fucking joke. This country is DOOMED. Military spending is the only place to find major budget reductions. Obama has lost me completely now.

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January 25, 2010 9:01 PM   

Well, it's not like he's cutting anything important like stuff to blow up villages, just HEALTH and HUMAN SERVICES. I guess HEALTH got such a bad name in MA that Obama just had to rush right in to let people know that the very FIRST thing he's going to cut is HEALTH.

I tell you if we elect Tim Pawlenty in 2012 you will not be able to tell the difference. That's exactly what Timmy did -- went right at HEALTH.

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January 26, 2010 2:04 AM    in reply to bluebell

Well put.

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January 25, 2010 9:02 PM   

I guess he's getting his marching orders from Herbert Hooever Bayh.

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January 25, 2010 9:02 PM   

Discretionary funding (in terms of the federal budget) is anything that has to be debated and voted on annually. This includes funding for education, transportation, law enforcement, research, the environment, housing, many social services and other program areas. Mandatory funding includes programs like Social Security and Medicare.

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January 25, 2010 9:11 PM   

This bullshit posturing is so blatantly transparent I'm starting to wonder if the Repub nitwits had a point about this guy being an empty suit who was long on speeches and short on substance? Seriously, the only place to start saving money is over at the 'ol Pentagon. Is he too afraid to go there? Looks like it.

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January 26, 2010 11:00 AM    in reply to martis

Cut and run from military spending right after we almost got bombed on Christmas? Great idea.

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January 25, 2010 9:11 PM   

Rachel is terrific: "Stupid Hooverism"

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January 25, 2010 9:25 PM    in reply to bluebell

Amen, bluebell. Rachel told the truth, and kept on tellin' it.

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January 25, 2010 9:13 PM   

This is 1937 all over again. Pretty much guaranteeing continued double-digit unemployment for at least the next three years if not longer.

What will it take for these people to realize that deficit reduction is NOT a winner at the ballot box. Good jobs, rising wages, health security, financial security, these are the things that win elections.

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January 26, 2010 2:10 AM    in reply to Moose49

They no longer need to worry about the ballot box thanks to the supreme court ruling last week. Big corporations will fund the campaigns of their own private whores with hundreds of millions of dollars making our voices and votes are now meaningless. We have lost the ballot box, our so-called democracy is dead.
Congress and presidents no longer have to care what we think. Not that they ever did, but the supreme court made it legal.

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January 26, 2010 8:50 AM    in reply to goldiera

I agree with everything you said about the Supreme Court -- except that there are things we can do:

** Push Congress to pass legislation banning political contributions by corporations doing business with the federal government and by corporations with foreign ownership (my understanding is that these provisions would exclude most corporations from political spending).

** Similarly, push Congress to pass legislation enabling shareholders to claim a pro rata rebate for political expenditures they disagree with.

** And organize consumer boycotts of corporations spending political money.

None of these will remove the horrific damage done by the Court but they will significantly lessen it and, hopefully, give good candidates a chance to win.

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January 26, 2010 2:07 PM    in reply to Moose49

** Push Congress to pass legislation banning political contributions by corporations doing business with the federal government and by corporations with foreign ownership (my understanding is that these provisions would exclude most corporations from political spending).
CORPORATIONS WILL SET UP SEPARATE COMPANIES WITH DIFFERENT NAMES TO RUN THE CAMPAIGNS FOR THEM. REMEMBER ENRON?

** Similarly, push Congress to pass legislation enabling shareholders to claim a pro rata rebate for political expenditures they disagree with.
THE SHAREHOLDERS WON'T MIND, THEY WILL MAKE OUT LIKE BANDITS. BELTWAY BANDIT COMPANIES REAP BILLIONS! THIS IS JUST POLITICAL POSTURING TO APPEASE THE PEOPLE WHO RIGHTFULLY ARE UPSET AT THIS TERRIBLE RULING.

** And organize consumer boycotts of corporations spending political money.
YEAH, THAT WILL DO A LOT. ESPECIALLY AGAINST THE BILLIONS OF DOLLARS IN PROPAGANDA CORPORATIONS WILL SPEND TELLING THE PUBLIC HOW THEY ARE HELPING THEM. SORT OF LIKE DRUG COMPANIES WHO OFFER TO HELP PEOPLE WHO CANNOT AFFORD THEIR PRICES.

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January 26, 2010 4:18 PM    in reply to goldiera

No need to shout!

Look, none of these options is perfect but they're better than doing nothing. The only real solution is a change in the court's makeup or a constitutional amendment but neither will happen before the next elections. These laws can.

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January 25, 2010 9:15 PM   

Rachel again: "A big right turn".

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January 25, 2010 9:17 PM   

Is there just no end to the stupidity of Obama and his people? What a fucking moron! Freeze everything except the one thing we ought to freeze: the military budget. It's just beyond belief what a bunch of fucking idiots Obama and his people are. Why did he even run as a Democrat? Worthless coward.

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pol

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January 25, 2010 9:17 PM   

I quit. This site is getting to be ridiculous.

I'll check back after I hear what the president has to say.

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January 25, 2010 9:24 PM    in reply to pol

I'd rather check back when the President has DONE something.

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January 25, 2010 9:31 PM    in reply to pol

President is due to propose his budget Feb 1. Guess we'll see you then.

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January 25, 2010 9:22 PM   

It's about time President Obama got around to keeping John McCain's campaign promises.

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January 25, 2010 9:22 PM   

The Repulicans are boxing him in. Token spending control efforts will be mocked. Marginal economic improvements will be blamed. Tax increases will be attacked. And the DEM voters will stay home. Checkmate.

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January 25, 2010 9:25 PM   

So here Democrats are once again doing the heavy lifting for Republicans. Obama is SELLING REAGANISM. Military: GOOD Human Services: BAD.

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ft

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January 25, 2010 9:26 PM   

TEN PERCENT UNEMPLOYMENT. Unbelievable.

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January 25, 2010 9:27 PM   

I'm gonna go bald soon and I have a full head of hair. Can't stop scratching my head (you know WTF is going on kinda scratch). What's He up to now? I mean non-military cuts to the budget. Who's he trying to impress? What's the purpose? Did 2 years in the Army (one in Vietnam - not my choice) and let me tell you those boys know how to spend money. And fast. And we got two wars going on now. BTW, there are still more private contractors in Afghanistan than our own volunteer/private Army. What do you think they charge per hour. And the overtime! And the padded overtime. We're talking Wall Street money. Simply slice 10% off the military budget today if you're interested in the cutting the deficit. But then He would have to confront the Generals and the Pubs - and you know how He feels about confrontation. Excuse me, gotta scratch my head again (trying to figure out what this latest idea has to do with creating jobs).

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January 26, 2010 2:14 AM    in reply to Cornelius

It has nothing to do with helping employment.

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January 25, 2010 9:34 PM   

At this point, it doesn't matter what Obama does. The folks don't trust him anymore. Unless congress turns over and he makes a mad dash to the center, people are going to remain holed up with their wallets until he's gone.

It's post traumatic stress disorder from bailouts, stinkulus bills, HCR debacles, trials for terrorists and an endless parade of unions and lobbyists marching through the White House.

He may as well go on vacation until November.

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January 25, 2010 9:35 PM   

I'm gonna go bald soon and I have a full head of hair. Can't stop scratching my head (you know WTF is going on kinda scratch). What's He up to now? I mean non-military cuts to the budget. Who's he trying to impress? What's the purpose? Did 2 years in the Army (one in Vietnam - not my choice) and let me tell you those boys know how to spend money. And fast. And we got two wars going on now. BTW, there are still more private contractors in Afghanistan than our own volunteer/private Army. What do you think they charge per hour. And the overtime! And the padded overtime. We're talking Wall Street money. Simply slice 10% off the military budget today if you're interested in the cutting the deficit. But then He would have to confront the Generals and the Pubs - and you know how He feels about confrontation. Excuse me, gotta scratch my head again (trying to figure out what this latest idea has to do with creating jobs).

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January 25, 2010 9:35 PM   

So because Bush spent like a drunken sailor means the Dems should have their chance? Spending needs to be brought under control. It's utterly ridiculous that defense spending isn't addressed, but how can you do that when you're fighting two wars. Not to mention the M-I-C is a big employer - jobs, jobs, jobs.

Maybe in three years time this will give Obama the cover to go after DOD spending, hopefully being out of both wars and Obama being in his second term and politically untouchable.

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January 25, 2010 9:41 PM    in reply to Walter Mitty

Nobody argues that spending shouldn't be "brought under control" but tying budget increases to inflation will make very little impact. By excluding the Pentagon you miss the fattest part of the pig. This is all just hot air.

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January 25, 2010 10:54 PM    in reply to Walter Mitty

Do you have ANY idea how minuscule a part of the budget non-defense discretionary spending is? Look it up. You'll be shocked. This is a complete joke, causing real economic pain yet having a microscopic effect on the budget.

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January 26, 2010 2:20 AM    in reply to Steve LaBonne

Right, get the people down and do all you can to keep them there. A middle class can start revolutions, they have a stake in the system, so wipe them out. The underclass can do nothing because they have no stake in the system.
One of the rules of history is the fact there cannot be revolutions without a middle class. So, they are destroying ours. However, there are too many middle class (or former middle class) people left who feel betrayed, and there is going to be trouble for our gutless corporate leaders.

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January 26, 2010 10:57 AM    in reply to goldiera

Revolution? LOL.

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January 26, 2010 11:01 AM    in reply to goldiera

You are so correct. The feeling is spreading throughout our society like a wildfire. People are getting madder by the day and the focus of this anger will be at the federal gov't. They have done nothing to help any of us anywhere. Then with the supreme court selling us out, we are screwed, it's either revolution or die on our knees.

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January 25, 2010 9:39 PM   

If this is true, and I hope it isn't, Obama is doomed. WTF.

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January 25, 2010 9:41 PM    in reply to thentro

All I can do is laugh.

Reaganomics alive and well.

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January 25, 2010 10:16 PM    in reply to Nuclearmonkees

Obama missed the part about Reagan proving deficits don't matter. I guess the only Republican he's not listening to is Dick Cheney. (I guess that's something.)

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January 26, 2010 7:52 AM    in reply to henk

Reagan brought down the Soviet Union. That was a worthy investment.

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January 26, 2010 8:21 AM    in reply to Silence

Reagan got lucky. Gorbachev was the real hero.

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January 26, 2010 2:11 PM    in reply to Silence

Military spending to keep up with the west, and the Afgan war caused USSR collapse, not Ronald Reagan.

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January 25, 2010 9:43 PM   

This is the time for bold decisions, and Obama is apparently willing to make them. Liberals probably thought they'd be made in the other direction, however.

http://www.political-buzz.com/

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January 25, 2010 9:52 PM    in reply to jim43

WTF are you talking about? "Liberals" expect leadership and action. Not pandering and failure.

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January 25, 2010 10:12 PM    in reply to jim43

McCain proposed this during the campaign. Bold decisions are great, but stealing them from John McCain seems so..Republican not to mention assinine. Who the hell does Obama think voted for him?

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January 25, 2010 10:09 PM   

This looks like classic tri-angulation. Give the middle something that they will like. You can't continue to run a trillion dollar deficit every year.

However, I agree with the aide in the story from the Hill. There will be some extra yet-to-be announced plan that is designed to create jobs that will no doubt spend a bunch of money.

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January 25, 2010 10:09 PM   

This is what they come up with? Who's advising him? I despair.

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January 25, 2010 10:12 PM   

It's the military/defense budget that needs cutting.

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wyt

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January 25, 2010 10:18 PM   

He's a Republican. Expect the official change of parties before 2012.

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January 26, 2010 3:53 AM    in reply to wyt

Assuming he did... would anyone but the teabaggers honestly be surprised at this point?

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January 25, 2010 10:19 PM   

FDR followed the same course, pulling back his stimulus programs that had been boosting the economy.
The results were catastrophic. The economy tanked. And so did the fortunes of the Democratic Party.

Predictably, Republicans won 79 seats in the 1938 midterms.

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January 25, 2010 10:22 PM   

That's swell, Scott Brown isn't even sworn in yet, but Democrats are going to implement a proposal he made in the campaign?

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January 25, 2010 10:23 PM   

$250 billion over 10 years = $25 billion a year

$25 billion is about two percent of the projected 2010 deficit.

What a transparent, cynical, joke.

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January 25, 2010 10:47 PM    in reply to Zell

Ever hear of compound interest?

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January 26, 2010 8:18 AM    in reply to Zell

Kinda like demanding/directing a cut of 100 million just after spending 700 billion. LOL and I still don't think they even achieved that goal.

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January 25, 2010 10:26 PM   

Sorry, can't come up with any snark, I'm just disgusted.

Does he have a super-secret plan to freeze the need for those programs that he'll unveil on Wednesday, too?

News for Obama, no matter how hard you try to please them, the Republicans will still call you a socialist, pinko, commie, Nazi who was born in Kenya.

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January 26, 2010 8:06 AM    in reply to cwnidog

If the $550 pinko toed shoe fits.

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January 25, 2010 10:30 PM   

I think you also need to consider the longer range impact of this. If we freeze social spending and we don't freeze but increase military spending we continue to accelerate the distortion of our priorities. We know when Republicans get back in power they will cut social spending and increase military spending. The priorities just get more and more out of line. You can't make up for this over time. How do you ever make up what you lose when Democrats and Republicans alike cut human services and increase war spending?

I mean who are we kidding here? We are in the middle of a depression. Do you really believe that in a time like this there is any "discretionary" spending left in human services? You think they have more money than they need to help people in need? With unemployment stuck in double digits as far as the eye can see - a freeze in human services? That's what we voted for? Really? To freeze human services in a depression? That's what progressives do? That's what the party of FDR does? Really? That's what we stand for?

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January 26, 2010 2:28 AM    in reply to bluebell

It isn't what we the people stand for, it is the creeps who run our country. They all need to find themselves unemployed, their pensions canceled and their equity gone. Maybe then they will understand the depth of this terrible depression we are living in.

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January 25, 2010 10:35 PM   

WTF McCain WON?????

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January 25, 2010 10:35 PM   

Now that the financial industry, the military-mercenary complex and almost the health insurance industry are paid off, Obama can 'freeze' spending. Note: None of the 'freezing' inhibited the bailout of entire profligate corporations.

Here are the decisions made by the guy who wants to 'keep fighting for the middle class':


1. Decision - Ignore previous Republican crimes, misdemeanors and profligacy – tax cuts for the wealthy: Constituencies - Republican voters and Republican Senators and Representatives he hoped would become 'bi-partisan'.
2. Decision - Support a stingy stimulus that was half of what was needed and included one-thirds tax breaks, increasing the deficit and further reducing the stimulus to one-third of what was needed: Constituencies – Wealthy investors, special interests.

3. Decision - Kill the only option that would have slowed the cost of health care & led to universal coverage – $ 753 Billions : Constituencies - Health insurance and pharmacy industries.

4. Decision - Accelerate the Bush bailout, $ 4.3 Trillions in bailouts, guarantees and purchasing assets from the private sector at well above market value: Constituency - Financial industry and banks.

5. Decision - Escalate a meaningless and fruitless war, $600 Billions: Constituencies - military and corporate mercenaries.

6. Decision - Gut real financial reform and substitute finger wagging and silly taxes and fees, while banking fees continue up, lending freezes and credit tightens - $UNK Billions: Constituencies - financial industry and the wealthy.

7. Decision - Not help people with bankruptcy and mortgages remediation – accelerating middle class decline: Constituencies - financial industry, banks and wealthy.
and 

8. Decision - Fiddle around and not pass a jobs bill – accelerating middle class decline.

Now that the corporations are taken care of, it's time to pull out the old 'gotten balance the budget' talk. Obama and the Democrats have royally screwed the middle class and their fun just continues on. Truly they have played us all for fools.

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January 26, 2010 2:31 AM    in reply to bill

You are absolutely right. The supreme court made it official with their decision last week.

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January 26, 2010 4:28 AM    in reply to bill

Well said Bill. Depressing as hell, but well said.

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January 25, 2010 10:39 PM   

Is it time to admit that Obama is the Manchurian candidate from the Republican party?

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January 25, 2010 10:46 PM   

Good God. Even if (as is almost certain) the accounting is finagled so the reality is not as bad as the rhetoric (but economically it can't help but be bad, think 1937), how fucking clueless to reinforce conservative frames this way.

Jesus. How hard is it to understand? The deficit results from 1) bloated MILITARY spending, 2) the Bush tax cuts (and I'll bet the Dems now can't resist the pressure to extend them), and 3) THE RECESSION, you fucking clueless White House nitwits!

I didn't leave the Democratic Party, the Democratic Party left me...

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January 25, 2010 10:46 PM   

Why not freeze Defense spending? That's where all the crookery is... anything short would be stepping over dollars to pick up dimes.

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January 25, 2010 11:14 PM    in reply to witty1

That's like asking a starving Brahmin why he won't kill his pet cow and eat it.

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January 25, 2010 11:00 PM   

Some observations:

* Sounds like the usual GOP-lite messaging meant to appeal to independents. This isn't a pivot, this is more of the same (unfortunately)
* 25B per year over 10 years = 250B. Yeah, this is basically a cheap gimmick.
* Discretionary spending freeze might not mean all that much. CPI is going nowhere right now. We've had deflation in fact.
* This might not mean much, if paired with a second stimulus or jobs bill.

When will Obama ditch Rahm and other Clintonites, and realize it's not the 1990s. The GOP doesnt control both houses. People voted for Democrats and they have HUGE majorities. Be bold.

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January 25, 2010 11:10 PM    in reply to AnswerFrog

Given that the morning news story was spending on student loans and family tax credits, I suspect that this is, in fact, a rhetorical trick to say "Sure, we're spending more money on stimulus, but we're cutting agency spending too!"

25B a year is pocket change to the Federal government, and is more likely coming out of the budget for new furniture and office supplies than out of HHS or other social spending. Even though that means I'll have to deal with a shortage of binder clips and file folders, I'm OK with it, especially if the savings are pushed into something with a more multiplicative impact, like food stamps or more unemployment insurance.

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January 25, 2010 11:19 PM    in reply to AnonymousCoward

Caving to Republican frames is going to make it much harder to resist things like extending the Bush tax cuts (which of course are ironically a huge part of the problem). It's politically tone-deaf.

The reason why the freeze amounts to pocket change is precisely that non-defense discretionary spending is a microscopic part of the budget. There are many important programs- not only social services but things like scientific research- that cost absolute peanuts in the grand scheme of things, and could be seriously damaged by preventing any growth in NDDS. It's ridiculous to imagine it can all come out of things like furniture.

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January 25, 2010 11:22 PM   

Once again the immature left refuses to understand the genius that is Obama. He is saving the economy and the country in exactly the same way that Republicans would do it (on the backs of the poor, the middle class and the working class), but the immature left doesn't understand the crucial difference. Obama is doing it FOR the people.

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January 25, 2010 11:22 PM   

I can't believe some of the Henny Penny "sky is Falling" hysteria I have been reading.
I'll wait till I hear more about it before I draw conclusions.
maybe we should try to live within current budget for awhile. I think our current level of spending is pretty hefty.
the rest of us:individuals , states, etc, have all had to rein in our spending. I have never believed that we should just spend our way back to "the way it was" because 'the way it was" was deeply flawed. So I am open to alternatives. Even though I too want to see more spending in certain areas, I would rather they find ways to work within means otherwise ,it is just not sustainable.
I would also rather have a Democratic administration and congress preside over budget spending freeze than a Republican one. At least there is hope for some humanity in the process.

If Obama leads the way on budget restraint, it will be interesting to see how Republicans in legislature respond. those who have been screaming about too much spending will have to put up or shut up with their vote..i think it will flush out a lot of hypocrites as well as take some of the steam out of the current 'pseudo fiscal conservative/populist' storm from the right.

I'm not sure what scenario will follow,and yes it has been a bad, bad week, but I can't believe some of the instant overreaction .

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January 26, 2010 7:41 AM    in reply to manyamile

If that's what Obama's up to then he is finished. If Obama thinks that the Republicans and Teabaggers are suddenly going to become his buddies he is deluded beyond repair. Teabaggery is a pseudo-racist movement and the GOP only wants Obama to fail, Obama already wasted a year doing Republican-lite and trying to suck up to Conservadems. The result? Wreckage.

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January 25, 2010 11:25 PM   

How about cutting some of that defense budget? Do we really need military bases all over the world?

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JZ

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January 25, 2010 11:27 PM   

People really need to take a deep breath. We don't know either a) what exactly is going to be frozen and b) what the bigger picture is here. At first blush, it doesn't appear like we're talking about a huge amount of money here. It also doesn't look like the plan has any chance of passage. So it's probably largely a political move. So what's the politics? I don't think any of us really know the answer to that. It could be that he's totally capitulating and will run as a proto-Republican. It also could mean that he senses that if he puts forth a proposal like this (which could put the GOP on the spot by forcing them to prove they're actually serious about the deficit), it will provide both him and many Democrats the necessary cover to enact HCR or a jobs bill or something else. Or it could be something completely different from both scenarios. My point is that if we react to every trial balloon or proposal in a speech or unattributed comment in an article, we'll all go insane. I'm going to take a wait-and-see approach on this. And I'm going to make another call to my reps and demand they pass HCR and soon.

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January 25, 2010 11:32 PM    in reply to JZ

He knows perfectly well that the Congressional Democrats won't be on board with this (they have refused to give him drafts of spending cut plans before). By promoting the Republican frame in advance he's hanging them out to dry. Is that what the titular leader of a party is supposed to do?

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January 26, 2010 12:00 AM    in reply to Steve LaBonne

That tired old word "triangulation" comes to mind.

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January 26, 2010 12:02 AM    in reply to agio

At least Clinton waited until AFTER the Republicans had retaken Congress. This takes triangulation to a whole new level of chutzpah.

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January 26, 2010 11:51 AM    in reply to Steve LaBonne

Intra-Party triangulation. Only the Democrats could conceive such nonsense.

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January 26, 2010 12:16 AM    in reply to Steve LaBonne

Republicans are already attacking this -- as I'm sure anyone (including the White House) following today's politics knew they would...

I think JZ is probably on the right track when JZ suggests that this is probably mostly a political move...

Based on the details that have been leaked, the "freeze" is actually quite limited, and won't do anything to pet Democratic initiatives. Instead, this move is probably mostly meant to provide some political cover and assure independents that he is making an effort to rein in spending.

Concomitantly, he's likely to make the argument for a smarter use of funds -- "freezing" funds in some areas while ramping up funding in others, like funding for jobs, healthcare, education, etc. that are important to the middle class. So, I don't think this the dismissal of the Keyesian approach that some are hyping it to be. It actually could provide him cover to make a more focused approach toward additional stimulus (in the form of a jobs bill or additional middle-class focused initiatives).

Ultimately, I don't think this is the catastrophe that many are assuming it to be. I think it's more simply a nod to independents that he gets their concerns about the deficit. It will also allow him to more forcefully attack Republican hypocrisy on the deficit. [They made no efforts to curb spending, so they have no standing to attack Democrats on spending. That argument becomes much more forceful when you make dramatic moves (or least ones perceived as such) to control spending.]

Again, I think that JZ is right in that this will help provide some political cover to fund Democratic agenda items, like education and healthcare, etc. Obama will be able to make the argument for a smarter use of federal funds, and help to negate or begin to at least combat the Republican (unfounded) charges of profligacy that have started to sway independents.

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January 26, 2010 12:24 AM    in reply to hewhohasnoname

What you say is probably what Obama imagines. But it's nonsense. Reinforcing Republican frames will not protect him or any other Democrat from Republican attacks, quite the contrary. (Remember how they "rewarded" Bill Clinton.) And voters vote for real Republicans over pseudo-Republicans every time, as Harry Truman long ago pointed out.

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January 26, 2010 12:36 AM    in reply to Steve LaBonne

But he's not reinforcing Republican frames; he's undercutting a Republican argument. The two aren't synonymous.

Reinforcing the frame would be something along the lines of internalizing or acquiescing to the assertion that he's spending wildly and without focus. He's never done that, and I'm pretty certain that he never will. Instead, he's saying something along the lines of: "First, I told you that I would make efforts to rein in spending; I'm following through on that promise. By the way, don't listen to the Republican attacks. The spending that I'm doing is to help our nation recover from the Great Recession. And, anyway, why are you listening to the Republicans? They NEVER did anything to control their spending. And they want to lecture Democrats on spending? Why would you even entertain such hypocrites?"

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January 26, 2010 12:45 AM    in reply to hewhohasnoname

You're just wrong. He is feeding into the public's wildly skewed ideas about how much of the budget is discretionary domestic spending (eg. polls show a majority thinks foreign aid is about 20% of the budget when it's really 1%) and about the alleged but nonexistent massive amounts of "waste, fraud and abuse (almost all of which is in the sacred "security" cows that he's not touching) instead of educating the public. This plays right into Republican propaganda and is highly destructive of the Democratic brand. And it will make his own party into the bad guys when they don't play along (as they can't- their constituents want them to deliver.)

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