Obama Owns the Budget and the Economy

With an Obama stimulus package, and an Obama omnibus spending bill already passed, and now the a huge Obama budget working its way through the Congress, Politico notes that President Obama owns this budget, and hence the economy. Fierce fights may follow budget victory.

The House and Senate face a flurry of final budget votes Thursday, with Republicans pushed to the margins and having come forward only in the past 24 hours with a detailed alternative of their own.

But the victory for President Barack Obama could prove hollow, especially in the Senate, and Republicans are betting that the president’s very activism will work against him as he takes ownership of more and more difficult economic issues.

“This is a defining moment, and there is overwhelming empathy with folks who are scared to death about the direction this country is going,” Sen. Saxby Chambliss (R-Ga.) told POLITICO. “All of a sudden, you have the president taking over General Motors, the president taking over the financial industry and now the health care industry? I think there will be even a larger outcry coming from our constituents at the ballot box next time.”

Some of this nervousness already seemed evident Wednesday night in a Senate fight over how to proceed on Obama’s climate change legislation. On two successive votes, one as large as 67-31, a solid bipartisan coalition blocked efforts by liberal environmental interests wanting to use expedited budget procedures to circumvent Senate filibuster rules on cap-and-trade revenue provisions.

The defeat raises the stakes further for health care reform as the big remaining prize for the White House in the budget debate. And to a remarkable degree, Obama has been willing to blur the lines between himself and fellow Democrats to help move the process forward with this goal in mind.

Obama Owning the Budget and the Economy

Obama Budget Doubles Deficit in 5 Years Triples it in 10

Senator Lindsey Graham talked with bloggers today about President Obama’s budget plan. In short, spending is going way up in all areas except for military and defense spending, which will be cut. For President Obama’s budget to add up he has to take an extremely rosy view of the future. His administration is betting that unemployment will peak this year at a little over eight percent, and they are predicting a substantial economic recovery for next year. His view of the current world situation is also extremely optimistic, as he sees little need for spending on military and defense. Unfortunately, there are logistical problems in taking this perspective since, as Senator Graham put it, “We are flying the wings off our airplanes.” Finally, President Obama has included in his budget a plan for cap and trade that Senator Graham explained is far more costly than the McCain - Lieberman - Warner versions of cap and trade that have been introduced and debated in the past. Senator Graham stated that this is old fashion big government liberalism. He went on to say that in 2007 Senator Obama was ranked the most liberal Senator, and that his policies reflect that, that he simply took a year off from liberalism to run for President.

The problem with all this government spending is three fold. We can’t afford it. The likelihood of massive inflation is extremely high. We are burdening tax payers for generations to come with a huge debt that will almost certainly lead to higher taxes. (The fact China owns a huge amount of our debt is not comforting either.) This isn’t as much about partisanship, or liberalism as it is about bad math. Debts have to be paid, and the numbers are being manipulated to try to pretend that this plan adds up when it does not.

Obama Budget Doubles Deficit in 5 Years Triples it in 10

New Sites

Broad Side of the Barn has added several domain names to its listings in the promotion of An Independent Call.

These include:

An Independent Call - AnIndependentCall.com
Katherine Morrison - KatherineMorrison.com
New Hampshire Primaries - NewHampshirePrimaries.info
Independent New Hampshire - IndependentNewHampshire.info

Also new domains to check out include:

Purple People - Purple-People.info
Battleground States - BattleGroundStates.info

An Independent Call

Coming from Broad Side of the Barn - An Independent Call by Katherine Morrison

An Independent Call chronicles the journey of an Independent New Hampshirite from wary observer of town hall meetings to eventual McCain convert and volunteer. It is an amusing look at the events of a campaign. From meeting candidates from both sides of the aisle, to becoming a blogger for McCain, to being chewed out on campaign phone calls, to receiving press credentials for the Republican National Convention, this account relates the experience of being a participant at the lowest level politics from an outsider's perspective. A mix of good humor and political opinion from the middle.

Pro-Growth is Most Fair Option

Unfortunately, many in America are losing track of the logistics of the economy and are getting caught up in emotion. People are angry about bailouts and white collar crooks running ponzi schemes and are becoming resentful towards big business and the wealthy. Yet we risk losing site of the real goal of turning the economy around when emotion and arguments about fairness start start trumping logic and math. The reason not to raise taxes on the rich, businesses, and capital gains is not because one loves, hates, or feels indifferently about wealthy people. The reason not to raise taxes on those of means is because they are the ones able to create jobs, and invest in the businesses that are so desperately needed right now. The argument that the rich should pay more because that is what is fair ignores the fact that, particularly in a struggling economy, increasing taxes slows growth. Consequently economic recovery slows, and that is fair to no one. In reality when the economy slumps those just getting by pay check to pay check suffer the most. The rich may not be as rich as before, but they're still rich. Those being laid off and struggling to pay their bills are hurt the most in a prolonged recession, and implementing policies that hinder growth is not fair to anyone.

Also, small business owners are being grouped into the 'rich' category in an unfair manner. If a small business owner makes $250,000 a year that becomes a rather average income if he or she has to pay two to three employees salaries with that income. Also if they are trying to grow their business, it is likely a chunk of that income is being put right back into their business. That isn't the life of the highly privileged wealthy class. We'd be well served by taking the emotion and morality judgments out of economic policy, and simply look for policies that are pro-growth.

Larry Kudlow and Donald Luskin voice their frustration about the current policies that are anti-growth. Certainly, not unemotional in their criticism, they point out why a pro-growth strategy is simply the most fair economic strategy for all Americans.

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Pro Growth is What is Truly Fair

McCain Upset About Earmark Broken Promise

Presidet Obama's Address

There’s no denying that President Obama is one of the most eloquent politicians to come along in a long time. That was on display last night in his address to the joint session of Congress. The President put forth ideas that certainly show a shift in direction from the previous administration. It was nice to see energy and the environment move up the ladder of national priorities. The president also did a nice job in using his popularity with young people to tell them that he expects that they not only graduate high school, but further their education beyond high school, and he framed it well in terms of being a responsibility of citizenship.

What didn’t add up about the President’s speech was the math. President Obama laid out a number of ambitious goals one of which was cutting the national deficit in half by the year 2013. However, instituting programs such as national health care, making college accessible to all citizens, and instituting a cap and trade initiative on carbon emission is beyond ambitious when also trying to cut the deficit. With a huge stimulus package that just passed, a large appropriations bill about to come up for debate, and the possibly of more money needed for bailout plans, it seems highly unlikely that the national debt will do anything other than balloon even further. This isn’t just an issue of a theoretical debt that will some day have to be paid by the tax payer. This is a basic math problem that could negatively impact the economy for years to come. Government services take on an added appeal if the price tag is ignored, and a better explanation needs to be given of the cost to taxpayers before these programs are rubber stamped.

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President Obama’s Address

Lost in Space

Lost in Space from Wired counts down eight weirdest items lost in space. From human remains to a spatula here are the Wired's list...

1. Spatula

2. Tool bag

3. Glove

4. Tank of ammonia

5. Gene Roddenberry's ashes

6. Pee

7. Pliers

8. Camera

For more detail read Wired's Lost in Space article.