McClatchy DC Logo

Obama spends big now, talks austerity later — 10 years later | McClatchy Washington Bureau

×
    • Customer Service
    • Mobile & Apps
    • Contact Us
    • Newsletters
    • Subscriber Services

    • All White House
    • Russia
    • All Congress
    • Budget
    • All Justice
    • Supreme Court
    • DOJ
    • Criminal Justice
    • All Elections
    • Campaigns
    • Midterms
    • The Influencer Series
    • All Policy
    • National Security
    • Guantanamo
    • Environment
    • Climate
    • Energy
    • Water Rights
    • Guns
    • Poverty
    • Health Care
    • Immigration
    • Trade
    • Civil Rights
    • Agriculture
    • Technology
    • Cybersecurity
    • All Nation & World
    • National
    • Regional
    • The East
    • The West
    • The Midwest
    • The South
    • World
    • Diplomacy
    • Latin America
    • Investigations
  • Podcasts
    • All Opinion
    • Political Cartoons

  • Our Newsrooms

Politics & Government

Obama spends big now, talks austerity later — 10 years later

David Lightman - McClatchy Newspapers

    ORDER REPRINT →

April 05, 2009 06:00 AM

WASHINGTON — President Barack Obama boasts that he'll reduce spending on key domestic nondefense programs to their lowest levels since the 1960s, but he and Democrats in Congress are on a spending spree not seen since then.

Few analysts or members of Congress expect Obama to meet his cost-cutting goal, which he projects he won't meet for 10 years.

"Projections for future years rarely come true," said Marc Goldwein, policy director at the nonpartisan Committee for a Responsible Federal Budget.

Some Democratic lawmakers agreed.

SIGN UP

"I don't see this in the next 10 years. We just have too many challenges we have to face," said Rep. G. K. Butterfield, D-N.C., who voted for the House of Representatives' Democratic budget on Thursday.

House and Senate negotiators will try later this month to craft a budget plan that looks ahead. Its most important goal, however, will be to set budget levels for fiscal 2010 — which starts on Oct. 1 — and they're expected to boost spending for non-defense discretionary programs by 7 to 9.5 percent for that year.

Obama has proposed to raise fiscal 2010 spending by 10.1 percent, citing the economic emergency. At the same time, though, he's talking as if his budget is a blueprint for fiscal austerity.

The president told a March 24 press conference that "as a percentage of gross domestic product, we are reducing non-defense discretionary spending to its lowest level since the '60s, lower than it was under Reagan, lower than it was under Clinton, lower than it was under Bush, or both Bushes."

What Obama didn't say is that, under his budget, that low percentage won't be reached until fiscal 2019. Even if Obama serves two terms, fiscal 2019 won't begin until nearly two years after he leaves office.

One clue to the administration's — and the Congress' — seriousness about holding spending in check could come this week, when Defense Secretary Robert Gates is expected to discuss the fate of several big-ticket weapons programs, including the Air Force's F-22 fighter and the Army's Future Combat Systems, which big defense contractors have been lobbying hard to keep.

White House Budget Director Peter Orszag estimates that by 2019, nondefense discretionary spending will drop to 3.1 percent of gross domestic product, the lowest level since the early 1960s.

OMB officials also point out that such spending over the next 10 years would average 3.6 percent of GDP under their plan, lower than the 40-year average of 3.8 percent. But such spending in 2010 — the year they're budgeting for now — is expected to reach 4.7 percent of GDP, considerably higher than the 40-year average.

Analysts and lawmakers see several problems with the 10-year projection.

First, the administration assumes that the economy will grow at an average of 2.6 percent annually, but it's impossible to predict that with certainty. The nonpartisan Congressional Budget Office envisions somewhat slower growth, but long-term economic forecasts are notoriously inaccurate.

Second, the political situation is likely to change over 10 years. Will Obama win a second term? Will he have to deal a Republican Congress? Will there be a new war, or an escalating old one, that sends military spending up?

Many recent presidents have painted similarly rosy scenarios, only to be upset by events.

Shortly after he took office in January 1981, President Ronald Reagan promised a balanced budget by fiscal 1984. But his huge tax cuts, military spending boosts and the nation's worst recession since the 1930s up to then combined to drive deficits sky high.

His successor, George H. W. Bush, said eight years later that he'd balance the budget by fiscal 1993. Instead, Bush in fiscal 1992 faced a then-record $290 billion deficit.

Only Bill Clinton was successful, predicting deficits around $180 billion by the end of his first term in 1997. A combination of strong deficit-reduction legislation, a booming economy and, after 1995, a Republican-led Congress, helped deliver a federal surplus from fiscal 1998 to 2001.

Under President George W. Bush, deficits returned after 9/11, the product of big tax cuts, spending increases on defense and homeland security, and a recession. Even so, in his final budget last year, Bush, too, pledged a balanced budget by 2012.

So much for projections from former presidents.

The CBO last month estimated the 2012 deficit under Obama's plan would be $658 billion.

Some lawmakers agree with Obama's goal of getting future deficits under control.

"We have to get it down to the levels the president wants, or we're all going to be out of office in a few years," said Rep. Bill Pascrell, D-N.J.

His is a lonely voice, however, because Democrats see nondefense discretionary spending on a path to increase this year and next at the highest inflation-adjusted rate since the 1960s.

"It's insane," said Rep. Gene Taylor, D-Miss. "This is the fourth president since I've been in the House who's said they were going to fix the deficit in later years. It only worked out for Bill Clinton."

Other Democrats were more circumspect.

"It disturbs me a bit," said Rep. Peter DeFazio, D-Ore., "but we're getting some good funding for transportation, and that's very important."

And they're making no promises about where the deficit will be in the future.

"The president," said Sen. Ben Nelson, D-Neb., "is ahead of his time."

ON THEWEB:

White House Budget Director Peter Orszag blogs on non-defense discretionary spending

Deficits and surpluses through the years

President">George W. Bush's proposed fiscal 2009 budget

House of Representatives 2010 budget fact sheet

President Obama's 2010 budget outline

House of Representatives Republican 2010 budget

MORE FROM MCCLATCHY

CBO: Obama's budget would double deficit over decade

Greatest threat to Obama spending plan? Democrats

Health-care overhaul could hinge on procedural gamble

Another Obama grassroots drive leaves lawmakers unfazed

Related stories from McClatchy DC

politics-government

Health-care overhaul could hinge on procedural gamble

April 02, 2009 05:24 PM

politics-government

Another Obama grassroots drive leaves lawmakers unfazed

April 01, 2009 05:52 PM

economy

House GOP offers alternative budget, with details to come

March 26, 2009 05:03 PM

politics-government

Senate Democrats tell Obama they'll cut his budget plan

March 25, 2009 06:16 PM

politics-government

Even congressional Democrats intend to cut Obama's budget

March 24, 2009 06:33 PM

  Comments  

Videos

President Trump makes surprise visit to troops in Iraq

Trump says he will not sign bill to fund federal government without border security measures

View More Video

Trending Stories

Cell signal puts Cohen outside Prague around time of purported Russian meeting

December 27, 2018 10:36 AM

Ted Cruz’s anti-Obamacare crusade continues with few allies

December 24, 2018 10:33 AM

California Republicans fear even bigger trouble ahead for their wounded party

December 27, 2018 09:37 AM

Sources: Mueller has evidence Cohen was in Prague in 2016, confirming part of dossier

April 13, 2018 06:08 PM

Hundreds of sex abuse allegations found in fundamental Baptist churches across U.S.

December 09, 2018 06:30 AM

Read Next

Cell signal puts Cohen outside Prague around time of purported Russian meeting

Investigations

Cell signal puts Cohen outside Prague around time of purported Russian meeting

By Peter Stone and

Greg Gordon

    ORDER REPRINT →

December 27, 2018 10:36 AM

One of Michael Cohen’s mobile phones briefly lit up cell towers in late summer of 2016 in the vicinity of Prague, undercutting his denials that he secretly met there with Russian officials, four people have told McClatchy.

KEEP READING

MORE POLITICS & GOVERNMENT

Lone senator at the Capitol during shutdown: Kansas Sen. Pat Roberts

Congress

Lone senator at the Capitol during shutdown: Kansas Sen. Pat Roberts

December 27, 2018 06:06 PM
California Republicans fear even bigger trouble ahead for their wounded party

Elections

California Republicans fear even bigger trouble ahead for their wounded party

December 27, 2018 09:37 AM
Does Pat Roberts’ farm bill dealmaking make him an ‘endangered species?’

Congress

Does Pat Roberts’ farm bill dealmaking make him an ‘endangered species?’

December 26, 2018 08:02 AM
Ted Cruz’s anti-Obamacare crusade continues with few allies

Congress

Ted Cruz’s anti-Obamacare crusade continues with few allies

December 24, 2018 10:33 AM
‘Remember the Alamo’: Meadows steels conservatives, Trump for border wall fight

Congress

‘Remember the Alamo’: Meadows steels conservatives, Trump for border wall fight

December 22, 2018 12:34 PM
With no agreement on wall, partial federal shutdown likely to continue until 2019

Congress

With no agreement on wall, partial federal shutdown likely to continue until 2019

December 21, 2018 03:02 PM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

McClatchy Washington Bureau App

View Newsletters

Subscriptions
  • Newsletters
Learn More
  • Customer Service
  • Securely Share News Tips
  • Contact Us
Advertising
  • Advertise With Us
Copyright
Privacy Policy
Terms of Service


Back to Story