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Damned Either Way and Frankly Fine With It

No surprise. David Brooks has taken his lumps today, from both ends of the political spectrum. On the left, Steve Benen labels Brooks current opining a “very frustrating column.” On the right, Allahpundit gives Brooks clinched props before scolding him “for not realizing sooner … that ‘Barack Obama is not who we thought he was.’”

I feel your pain, Mr. B. One right-leaning commenter on my comment about your commentary lumped me in with other “moderates having buyers’ remorse as they realize they helped elect a far left liberal to oversee the worst economy in decades.”

In turn, a left-leaning commenter wagged his finger at my disdain for the deficit-heavy Obama budget and my prediction of a 2010 Republican majority in the Senate:

“What Republicans are out there to be put in office who have a realistic take on what’s happening now? Do you dismiss out of hand the Obama administrations proposals to reduce the deficit in the long run?”

David Brooks might not feel compelled to respond to his critics. I do.

Thus, with the aforementioned right-leaning commenter, let me be very clear: I feel no remorse whatsoever about voting for Obama. In fact, even knowing what I know now, if I were asked to vote again today — in some weird, Californiaesque, Presidential recall election — I’d punch the same button I did on Nov. 4. A month prior to that vote, I knew what I was doing:

I think many of Obama’s policies tend to the super-sizing of government, which is almost always accompanied by profligate, wasteful spending and heavy-handed taxation.

But I voted for Obama anwyay, because:

Even if I question some of (his) policies, even if my vote helps turn over the White House and both chambers of Congress to a political party with which I frequently disagree, I still want a President who is studied and cautious and diplomatic — and of the candidates most likely to be President on Nov. 5, I find Sen. Obama to be the more-studied and cautious and diplomatic of the two. Period.

I still feel that way.

With respect to the aforementioned left-leaning commenter, let me take his two shots one at a time.

First: “What Republicans are out there to be put in office who have a realistic take on what’s happening now?”

Response: There are a few; Specter, Collins, Snowe, and Crist come to mind. But that’s not the point. The point is that, while the President and his team have many good ideas, the best teams are never those who get everything they want. The best teams are those who are forced to refine and sharpen and improve their ideas; to contend with a counterweight or regulator, someone or something to check their more wreckless tendencies. The R’s failed to be that regulator for GWB. The D’s are now signaling their inclination to achieve similar failure with BHO. Thus, good ideas or not, the R’s will have to play the balancing role with Obama — and I think Obama will be a better president for it.

Second: “Do you dismiss out of hand the Obama administration’s proposals to reduce the deficit in the long run?”

Response: No, I don’t dismiss them out of hand. But I do question their oddly optimistic GDP projections for 2010 and beyond, and I cannot accept as “deficit reduction” a forecast that assumes massive, year-over-year deficits through 2019. Per the NYT depiction of the OMB analysis, BHO will make GWB look like the fiscal conservative he was not. Moreover, Obama’s goal should not be to reduce deficits from his own high-water mark, but to meet or beat the line separating deficit from surplis, much as the last Democratic President with a Republican Congress did.

And now, I feel much better. May Mr. Brooks enjoy the same peace.

  • DaGoat
    Nice analysis. I think this is the key:

    "The best teams are those who are forced to refine and sharpen and improve their ideas; to contend with a counterweight or regulator, someone or something to check their more wreckless tendencies. The R’s failed to be that regulator for GWB. The D’s are now signaling their inclination to achieve similar failure with BHO. Thus, good ideas or not, the R’s will have to play the balancing role with Obama — and I think Obama will be a better president for it."

    The ideal solution to the current crisis is probably a balanced approach. I understand the need to spend money to stave off a depression but the current budget proposal seems extreme and includes elements that are not related to the recovery.

    Liberals are fond of pointing out that GOP principles have been discredited and to an extent they are right. But the principle of trying not to spend money you don't have has not been discredited. Bush being a fool is not an excuse for Obama to be the bigger fool.
  • elrod
    I would still like to know what the real and likely costs of increased deficits are. I know the theory - increased deficits mean we spend more on interest paying down the debt and investors feel slightly less confident that we will meet our obligations, which drives up the interest rates necessary to entice buyers of Treasuries. But Treasuries are at the lowest rates in decades. Why? Because the US treasury is still the safest places on Earth to put your money. Moreover, the US dollar is still the safest currency in the world (is there any real fear that the Chinese will suddenly fall in love with Euro now that the European banking system is in chaos?) It seems that as the savings rate goes up (at 5% it's the highest now in a long time), the number of people buying Treasuries remains at a record high. Alas, paying off the deficit is still relatively cheap and will likely remain so for a while.

    Presumably, that will change at some point. But when?
  • HemmD
    Perhaps an ignorant question on my part, but will the first sign of inflation also serve as an early sign that the world economies are returning to a state of normalcy? If other investments start to appear safe again, won't that trigger the inflation we normally look for when the US spends loaned money? Ironic if true.
  • greenschemes
    Elrod

    Why was this question not asked when Bush was running all those deficits?

    AS Dick Cheney said. Deficits are not a problem. Then fired the Treasury Secretary for disagreeing.

    So just why are Deficits a bad thing? Put simply Deficit financing is coercive and also a boundless levy cravenly laid on the backs of future wage-earners who are powerless to prevent it.

    Did you want to spend 800 Billion for 2 wars in Iraq and Afghanistan? Did you want to spend 1 trillion dollars bankrupting the USSR by building an 800 ship Navy and the F117 and stealth Technology?

    Do we want to spend 3 trillion for health care that we cannot afford? How about 1 trillion for Wind turbines?

    Deficit spending is nothing more then coercive government telling us what they are going to waste their money on and then charge to future generations. When your grandkids grow up, do you think they will understand the need to bankrupt the USSR or fight two wars in The middle east?
  • greenschemes
    Charles L. Schultze, who had been the chairman of the (Council of Economic Advisers under President Jimmy Carter, was telling anyone who would listen something that few people understood just then. "The tragedy," he said at the time about budget deficits, "is that there is no crisis."

    Many professional economists have long agreed with Schultze about the deficit, albeit in a quiet, don't-remind-us kind of way. The full import of what they were saying is at last seeping into the consciousness of the public and of the Washington political establishment. Something terrible may yet happen, but with each year in which it does not, the case for regarding the budget deficit as an economic crisis weakens.

    In Washington the anxiety level has decreased because after seven years in which the country broke every fiscal rule in the book and nothing terrible happened, it is harder to see why we had the rules in the first place. Conservatives and liberals have formed an unlikely alliance whose binding principle is that cutting the budget deficit is not, after all, the most important thing in life.

    There is nothing wrong with borrowing, as such. It is how you use the money you borrow that counts. If you borrow and invest wisely, your investment will generate a stream of future income; you can use that stream of income to repay your debt, and you will probably still have a good bit of money left over. It is something else again if you just spend the borrowed money to maintain your standard of living.

    So it is never about the money. It is about what we are doing with the money that is the important thing. This stimulus bill is about deferring the pain to maintain a standard of living. It is not about investing wisely to insure future jobs that generate growth and productivity for a nations long term health and welfare.

    There in lies the problem with huge deficit spending.
  • greenschemes
    And lastly let me add why I believe our deficits are becoming a problem.

    Put simply they are becoming enormous. Beyond imagination. There is only one nation on earth that has a Budget over a trillion dollars. We are now asking the world to lend us 3 trillion in 2 years and up to most like 5-7 trillion over the course of Obama's term in office.

    Quite honestly the world does not have this kind of money to lend us. With low interest rates Americans are finding other means to invest their money. In 3-7 years this is all going to come crashing down around us when our deficits are mindboggling and the pool of lendable money dries up.

    A few 100 billion is doable year after year..............a FEW TRILLION is not sustainable. Period and what transpires when the USA has a 3 trillion dollar deficit and no one wants to lend us any more money sometime in the near future? CHAOS beyond imagination.

    There is a day of reckoning. Its coming.
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