July 25, 2013

We’ll need Democrats to question old assumptions, be willing to redesign or get rid of programs that no longer work, and embrace changes to cherished priorities so that they work better in this new age. For if we believe that government can give the middle class a fair shot in this new century, we have an obligation to prove it. -- Barack Obama's speech yesterday at Knox College.

Jesus. Are there any programs more successful than Social Security and Medicare, anything more helpful to the middle class? What planet does he live on?

Some people deny the reality of the long-term plan to implement a Grand Bargain on Social Security and Medicare, so I thought I'd remind readers of a little blowup between White House economic advisor Gene Sperling and author Bob Woodward, Feb. 2013. Here's Woodward:

My extensive reporting for my book “The Price of Politics” shows that the automatic spending cuts were initiated by the White House and were the brainchild of Lew and White House congressional relations chief Rob Nabors — probably the foremost experts on budget issues in the senior ranks of the federal government.

Obama personally approved of the plan for Lew and Nabors to propose the sequester to Senate Majority Leader Harry Reid (D-Nev.). They did so at 2:30 p.m. July 27, 2011, according to interviews with two senior White House aides who were directly involved.

You remember Jake Lew. He's the one they kept marketing as a "bleeding heart liberal" when Obama first nominated him to take Tim Geithner's slot at Treasury. Well, in the valley of the blind, the one-eyed man is king!

Sperling sent an email to Woodward in which he responded:

The idea that the sequester was to force both sides to go back to try at a big or grand bar[g]ain with a mix of entitlements and revenues (even if there were serious disagreements on composition) was part of the DNA of the thing from the start. It was an accepted part of the understanding -- from the start. Really. It was assumed by the Rs on the Supercommittee that came right after: it was assumed in the November-December 2012 negotiations. There may have been big disagreements over rates and ratios -- but that it was supposed to be replaced by entitlements and revenues of some form is not controversial. (Indeed, the discretionary savings amount from the Boehner-Obama negotiations were locked in in BCA [Budget Control Act of 2011]: the sequester was just designed to force all back to table on entitlements and revenues.)

Digby commented at the time:

I don't know that anyone's ever admitted that in public before or that the president was completely, shall we say, honest when he ran for his second term about that specific definition of "a balanced approach". I haven't heard anyone say publicly that the sequester "deal" as far as the White House was concerned was to cut "entitlements" in exchange for new revenues. I wonder how many members of congress were aware of this "deal" when they voted for the sequester? The public certainly wasn't.

I wish I could understand why it is so important to Barack Obama to cut these vital programs before he leaves office. It seems to be his obsession. But there you have it. It's not just in the DNA of the sequester, it seems to be in the DNA of this White House.

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