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Go Home The Budget as a Moral Exercise

JONATHAN COHN APRIL 13, 2011

The Budget as a Moral Exercise

So just how strongly will President Obama tout the recommendations of the Bowles-Simpson Commission when he speaks about deficit reduction on Wednesday? I am still not sure. Following a Washington Post report that the president planned to tout the commission’s recommendations, White House officials made clear to reporters that the president would not make the commission a central part of the speech. That’s encouraging, but I still think Obama would be smart to cite some of the other deficit reduction proposals circulating in Washington.

In addition to the “Our Fiscal Future” and Bipartisan Policy Center plans I wrote about previously, there’s the proposal House Democratic leaders plan to unveil on Wednesday morning, in advance of the president’s speech. Details on the plan aren’t available yet, but a House aide says that the proposal is supposed to achieve primary balance (that is, eliminating deficits except for interest payments) by 2018 and that it generates more savings than the president’s budget. That proposal won’t have bipartisan credibility, obviously, and I imagine it will call for more tax increases than Obama is willing to embrace. But he needn’t put his imprimatur on the plan. He need only signal (particularly to elites) that elements of that plan, or some of its similarly liberal alternatives, have a place in the discussion. 

In fact, the speech I’m hoping to hear on Wednesday is one that makes clear Obama’s willingness to negotiate in good faith about deficit reduction, but sets out basic principles (maybe like these) and then draws just a few clear lines. A place to start would be with a suggestion from political scientist Jonathan Bernstein: Obama should insist that any deficit reduction proposal have real, honest figures to back it up. Another criteria should be the preservation of Medicare, Medicaid, and Social Security. Radically transforming the programs should be out of bounds.

Both criteria would exclude from consideration the proposal from House Budget Chairman Paul Ryan. But I, for one, have no problem with that. The plan's extremism was apparent from day one, as it seeks to end Medicare and Medicaid as we know it, deny health insurance to more than 30 million people, and offer huge tax cuts to the wealthy. More recently, though, scrutiny has shown it to be something of a fake. It has fishy economic projections from the Heritage Foundation. It actually doesn’t produce tremendous savings in the first ten years, because tax cuts eat up almost all of the spending reductions once you properly account for declining war spending. The long-term savings are larger, but they depend on dubious political assumptions (namely, the ability to enact draconian Medicare cuts that would fall almost entirely on beneficiaries).

Speaking from the podium on Tuesday, Press Secretary Jay Carney offered just such a clear rejection of Ryan:

...balance is essential; that the burden has to be shared by everyone. And what is not acceptable, in the President’s view -- and, we believe, in the American people’s view -- is a plan that achieves serious deficit reduction only by asking for sacrifice from the middle class, seniors, the disabled, and the poor, while providing substantial tax cuts to the very well off.

Statements like that are important not only for what they say about policy. They are important for what they say about morality. As Greg Sargent has noted, framing the budget debate as a test of our society's priorities was a key element in Bill Clinton’s political strategy in 1995. "Democrats are at their best not simply when they say, `Republicans are mean--they want to cut Medicare,’” Clinton adviser Paul Begala told Sargent, arguing that the correct message is: “They want to cut Medicare because they want to give tax cuts to the rich. That’s what’s indefensible.”

I don't expect we'll hear anything that strident from Obama on Wednesday. It's not his style. But a speech that made a principled, moral case for shared sacrifice would more than suffice--even if it includes mention of Bowles-Simpson.

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10 comments

Well said. Though I don't see how your title "a Moral Exercise" applies to the rest of your argument. Which is a good thing, TNR makes "moral arguments" way more than they need to. When the facts are on your side, argue the facts.

- AllanL5

April 13, 2011 at 8:11am

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There's nothing strident about saying, “They want to cut Medicare because they want to give tax cuts to the rich." It's the simple truth. It's right there in Ryan's "bold plan" for all to see. So Obama and other Democrats should SAY IT—loudly and often.

- DAVIDDREIER@EARTHLINK.NET-old

April 13, 2011 at 8:59am

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Very good. Obama doesn't have to single out Ryan (or even Republicans). He could simply state that the deficit plan must include shared sacrafice and not be a means of giving another, another large tax cut to the wealthy. He could say that if Medicare, and health care generally, can be made more efficient without sacraficing the number one priority of patient care, then by all means let's make it more efficient. He could say a strong and vibrant middle class is essential for America's prosperity, as it always has been, and that any deficit plan must be designed to strengthen the middle class not weaken it. He could say America has learned from the mistakes that resulted in the financial collapse in the fall of 2008 before he was elected President, mistakes that cost Americans dearly, mistakes that he and his administration want to make sure are not repeated again by those who would profit from the misfortunes of others. And so on.

- rayward

April 13, 2011 at 9:20am

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Yeah. And maybe it was a bit of a stretch for TNR, some of its readers, and folks like Krugman to go all sky-is-falling about the single WaPo piece that vaguely alluded to Simpson-Bowles, based on what appears to be a tossed-off mention.

- miceelf

April 13, 2011 at 9:53am

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When is someone going to point out that Ryan voted for the massive expansion of Medicare that Bush proposed? Ryan, like his plan, lacks credibility and the previous post that points out what Ryan and company (folks like the Club for Greed) simply want to dismantle the social safety net so that the fat cats can go on an even higher-carb diet is right on the screws. I'm a left/center guy and I don't break out in hives at the mention of Simpson/Bowles, but there needs to be a bit stronger message that revenue is going to have to increase as well as cuts to programs. Simpson/Bowles has some of that (but not enough), but the revenue increases that are in there clearly haven't been promoted strongly enough.

- Lundell

April 13, 2011 at 10:15am

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I didn't say this, but it is worth repeating:

The RNC raised $7 million in March, and remains nearly $20 million in the red. Clearly, they need to cut contributions and cancel projects that help the less important amongst themselves.

- Nusholtz

April 13, 2011 at 11:36am

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Sounds like the Dems are playing it smart; get a liberal plan out there to counterbalance Ryan's Road-To-Hell, and then let Obambi work his compromiser-in-chief magic.

- GSpinks

April 13, 2011 at 1:16pm

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Well praise be. Obama has now given his speech. 4 trillion cut in 12 years, didn't mention Bowles-Simpson thank goodness, cuts in Military, restore tax-cuts on those over $250K, he will NOT extend that again (yeah, right, he's said THAT before, but still). A few "end waste, fraud, and abuse" lines. Hold the line on Social Security, Medicare/Medicaid. No "pre-emptive" offers. Well done, Mr. President.

- AllanL5

April 13, 2011 at 2:41pm

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Who's your daddy?

- miceelf

April 13, 2011 at 4:41pm

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LOL! miceelf nails it.

- GSpinks

April 13, 2011 at 4:55pm

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