After running up a trillion dollar deficit, Obama proposes making federal Pay-As-You-Go rules into law.

From CNN:

WASHINGTON (CNN) -- President Obama on Tuesday proposed making "pay-as-you-go" rules for federal spending into law.

The so-called PAYGO proposal requires Congress to balance any increased spending by equal savings elsewhere, Obama said in announcing the measure that now goes to Congress.

A previous PAYGO mandate helped erase federal budget deficits in the 1990s, and subsequent ineffective rules contributed to the current budget deficits, Obama said. Now the PAYGO rules should be the law, he said.

"Paying for what you spend is basic common sense," Obama said. "Perhaps that's why, here in Washington, it's been so elusive."

Republican leaders said the proposal comes after record spending initiatives by the Obama administration, such as the $787 billion economic stimulus program.

"It seems a tad disingenuous for the president and Speaker [Nancy] Pelosi to talk about PAYGO rules after ramming trillions in spending through Congress proposing policies that create more debt in the first six months of this year than in the previous 220 years combined," said Rep. Eric Cantor of Virginia, the House Minority Whip.
...
Any extra cost that lacks payment authorized by Congress would require the president to find money within the budget to pay it, while any tax cut would require a corresponding increase in tax revenue.

Some costs would be exempt, including Medicare payments to doctors, the estate and gift tax, and tax cuts enacted in 2001 and 2002, the White House statement said.

So running up the deficit to record levels and then preemptively strike back by campaigning for programs that would limit exactly the kind of spending you just did. Now that's a savvy politician but is it really right for the country?

▶ Reply to This

Replies to This Discussion

Permalink Reply by Gangster on June 10, 2009 at 9:15am

We are too much of a consumer based society- very materialistic in nature. This has spilled over into our government. Let's give John McCain a machete and let him run wild through the halls of congress cutting wasteful spending (that was his platform in a nutshell wasn't it?)

We could learn a lot from the people of the Appalachian mountains. The hillbillies are self sufficient and they don't go out buying items just because a well thought out commercial tells them they should. Let's all start at home by planting vegetable gardens. Does anyone have any tips for a low cost eco-friendly vegetable garden?

▶ Reply

Permalink Reply by lowkey on June 10, 2009 at 10:06am

We are too much of a consumer based society- very materialistic in nature. This has spilled over into our government. Let's give John McCain a machete and let him run wild through the halls of congress cutting wasteful spending (that was his platform in a nutshell wasn't it?)

ROFL :)

It is true that the Republicans haven't been any more fiscally responsible than the Democrats for a long time, but I find the timing of Obama's Pay-As-You-Go and Bernake's recent warnings about bringing down the deficit to be delightfully ironic given that the recent spending that both of them approved of has created the largest deficit in history and we're only in June. A couple good old fashion emergencies (hurricane, etc.) this summer & fall could add even more to it.

What I wonder is if the timing of Obama and Bernake's announcements are not a coincidence but rather planned to create an impression with the average voter that neutralizes any potential fallout if the stimulus & massive deficit cause increased inflation or if China decides to stop buying bonds or if the recession isn't turned around. Preemptive damage control if you will.

▶ Reply

Permalink Reply by Gangster on June 10, 2009 at 3:37pm

It has to be strategic, but I don't imagine the mass perception of inflation played a factor into the backroom planning. The powers that be don't give that much credit to the sheep of this nation- and generally the sheep probably don't get it or don't care. We just want the big number out of the spotlight. Make it go away- out of sight out of mind.

▶ Reply

Permalink Reply by Eric0rr on August 4, 2009 at 4:03pm

I support your idea Gangster, but it's to late for that the election is over, and McCain, never was that good of a candidate.

▶ Reply

Permalink Reply by Drew22 on August 4, 2009 at 11:05pm

What are the tools? Personally, I voted for Obama fully aware that some of his politics border socialism. The funny thing is I really believe in Ron Paul and when the Republican Party failed to elect him during the Primary I truly became disenchanted once again. Living now I believe in HOPE and in our new President. I just wonder where his path leads? My real question, am I alone? The media drives me crazy right and left! In general Liberals, if one digs deep, seem to hold down the poor and middle class those they represent. The conservative core over the recent years, the religious right, passes off a war and really let abortion slide to the back seat. I know these are mostly broad generalizations but I just wonder who runs the country, if the people elected consistently fail those that support them. I am sure my rant seems a little crazy! I do not question or disagree with most individuals desired vision for society; but I severely question most individuals methods for creating a society. Our founding fathers gave us, the citizens of the U.S.A., the Constitution and the Declaration of Independence the only tools we truly need. I urge all to compare many of this nations policies and practices aside these tools; I think you will find the system government was cheated and broken long ago.