What’s hot, what’s notafghanistan Africa bailout banks Barack Obama budget canada china Confirmation hearings courts crisis debt deficits Democratic strategy democrats detainees economic crisis economic growth economic reform economy employment Europe finance financial reform financial regulation foreign policy Geithner George Bush Ghana government spending health care health care reform Hillary Clinton humor immigration Insurance reform iran jobs justice leadership leverage military nationalization nomination nominee North Korea Obama Obama administration pakistan Paul Krugman Pelosi podcast politics President president obama Progressives protest real estate recession reconciliation Republican Republicans Richard Cheney secretary of state Senate socialism Sotomayor speech spending stimulus Supreme Court taxes tea party unemployment war
Search the Web? Search here:
Jeanette on Irony of Obama’s Op…
- With the Coronavirus, It’s Again Trump vs. Mother Nature March 31, 2020
- An Open Letter to President Trump March 26, 2020
- Finding the ‘Common Good’ in a Pandemic March 24, 2020
Tag Archives: politics
Originally published on February 18, 2009, at http://www.politicsunlocked.com/item/after-the-spending-spree
Following the historic passage of substantial stimulus legislation, President Barack Obama must now show he is capable of fiscal discipline.
The 789 billion spending and tax relief bill passed with overwhelming Democratic support, and despite almost unanimous Republican opposition, showing that bi-partisanship, a central theme of his campaign, proved to be harder to achieve than propose.
The President urgently sought a short-term stimulus bill to reverse the economic decline. Now that he has achieved this goal, the President should turn his attention to the long-term fiscal health of the nation.
Most Americans are dismayed at the fiscal irresponsibility of government leaders and feel powerless to stop the government from spending their money unwisely. Mr. Obama has a unique opportunity to put his political weight behind drafting legislation to control long term spending, including outlays for Social Security and other so called entitlement programs, that will only take effect once the recession passes.
The government is currently committed to spend more than it is projected to take in on Social Security and Medicare. This deficit will require spending cuts or revenue increases to make up the difference. The public will certainly not like either solution.
Operating with a deficit is justifiable under certain conditions such as emergency needs or long term improvements, programs which could not be afforded without borrowing. However, operating the government with a chronic deficit is irresponsible and hardly confidence-inspiring.
If President Obama were to begin the work of entitlement reform and act with the deliberate and decisive hand that has guided his campaign and his Presidency so far, he would again succeed. Leaders must compromise. The public must make sacrifices. This will truly have to be a bi-partisan effort.
This debate must be had in the next few years, before it is too late to plan responsibly. Why not move on it now in order to show a very skeptical public that the government is not only good at spending its money, but can manage it as well?