Harkin: Obama shouldn't prioritize deficit reduction

U.S. Senator Tom Harkin argued yesterday that getting the economy moving again is more important than cutting the federal deficit, adding that President Barack Obama isn’t showing enough leadership on the issue. I share Harkin’s view and hope other Democrats who have bought into the deficit hysteria will get the message.

Speaking with the Des Moines Register editorial board yesterday, Harkin said more public investment in education and infrastructure “takes precedent over deficit reduction,” because putting people to work would spur private sector investment as well.

Obama needs to stand up to those calling for deficit reduction, he said.

“I don’t think he’s exercising the leadership that’s necessary right now to move us in the direction that I think we ought to be moving in. He needs to be more forthright about it and needs to have a clearer, simple picture for the American people about OK, if we’re going to raise revenue, here’s where we’re going to raise it from, and here’s what we’re going to spend it on.” […]

Now isn’t the time to dwell on fixing the deficit – wait until the economy’s strong again, Harkin said.

“We’ve had balanced budgets before in ’98, ’99, 2000 and 2001,” he said. “We had not only balances, we had surpluses. … How short memories we have. We know how to do this. This is no real big secret.”

Obama is letting Republican voices that are “strong and wrong” drown out his own message, Harkin said.

“Everybody’s buying into ‘We’ve got to reduce the deficit. We’ve got to cut, cut, cut, cut. We’ve got to keep cutting everything.’ It’s like taking a chainsaw to yourself. That’s not going to get you out of this mess we’re in.”

I couldn’t agree more. The best deficit-reduction plan would focus on bringing down the unemployment rate. That said, it’s a pipe dream to think Obama will suddenly start making a strong case for public investment. He threw in his lot with the austerity crowd long ago and just spent half the summer on the fierce urgency of reducing U.S. long-term debt, cutting Social Security and Medicare if possible.

I can think of one person Harkin might be able to influence, though: three-term Representative Bruce Braley. Ever since Braley won Iowa’s first Congressional district, many Democrats have viewed him as a likely successor to Harkin someday. If Harkin doesn’t seek a sixth Senate term in 2014, Braley would be a front-runner in the Democratic primary. The two men seem to get along well, and both have chaired a Populist Caucus in the U.S. House. Both Harkin and Braley have said the U.S. should accelerate troop withdrawals from Afghanistan.

This week Harkin and Braley co-hosted a roundtable discussion about economic policy in Cedar Rapids. Excerpt from Braley’s August 22 press release:

The event brought together a cross-section of Iowans to discuss a variety of ideas to encourage growth of the middle class. The diverse group of Iowans included college students nearing graduation, unemployed Iowans looking for work, and Iowans looking for ways to secure their retirement.  The conversation focused around the need for increased workforce training for those people who are transitioning into new fields and the need to sustain reliable, middle-class jobs.

“The middle class is shrinking and this is a problem we cannot ignore,” said Rep. Braley. “Iowa’s economy has lost 600 manufacturers and over 43,000 manufacturing jobs in the last decade.  We cannot afford to continue to lose these types of reliable, good-paying jobs and Iowan’s deserve the opportunity to work in an economy that provides these types of jobs.”

Improving the economy should be the top priority for Congress, and that’s why I’ve been disappointed to see Braley embrace the rhetoric of deficit hawks since last November’s election. Again and again, Braley has emphasized the need to bring down the federal deficit and debt, citing fiscal concerns as his main reason for supporting or opposing certain bills. Deficit worries were front and center for Braley when he raised questions about our military intervention in Libya (see also here).

Braley rejects the Republican cuts-only approach to balancing the budget and voted against the final debt ceiling deal because it “place[d] the burden of deficit reduction on middle class families, while demanding nothing of millionaires, billionaires and corporations making record profits.” That’s commendable, but I don’t think Braley realizes how much leverage Republicans gain when Democrats like himself talk like deficit hawks. Harkin is right: the focus now should be on jobs, education and infrastructure.

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desmoinesdem

  • breaking news: the deficit is a real problem

    The reason that Rep Braley talks about the deficit as though it’s a problem, is because IT IS a problem.

    President Obama is going to be unveiling a jobs bill soon– it’s likely to include large amounts of infrastructure investments.  This will increase our deficit.  

    Senator Harkin (And President Obama) are correct that infrastructure investments are a sound idea to create jobs, but the criticism (and push back) from Republicans will center around the fact that this is just more spending.

    When we have people like Rep Braley in office, fighting to cut deficits, it gives Democrats the ability to have legitimate discussions about what is a sound investment, and what is an excessive investment that we can’t afford.

    I for one am happy to see that we have two common sense elected officials that lead on important issues.

    • not as big a problem

      as reducing unemployment. In fact, there is almost no chance to deal with the deficit problem if unemployment stays around 10 percent. A big reason we had surpluses in the late 1990s was the extremely low unemployment rate at that time.

      When politicians in both parties frame everything in terms of its impact on the budget deficit, Republicans win. The more people become convinced that we have to cut the deficit above all else, the lower the chance that any meaningful infrastructure investment will happen, because the GOP will never support a “balanced approach” with revenue increases. High-speed rail funding and other good projects already got hacked when the GOP demanded to cut current-year spending. Obama then went out and bragged about making record spending cuts. Idiocy, not leadership.

      • Assuming

        that you don’t believe that Obama is literally an idiot or a stupid person (correct me if I’m wrong there), what are your theories as to why he has adopted the economic policies that he has?

        Here are some possibilities that occur to me:

        — He genuinely believes that they are the right thing to do.

        — It is part of a poll-tested strategy to retain enough independent voters in battleground states to enable him to win re-election.

        — He is a blank slate on economic policy and is carrying out the views of various advisers.

        — He is in the sway of shadowy special interests, say key Wall Street figures.

        — He is basing his policies on a different set of data or assumptions than are his critics; in this case, both sides would call the other side “misinformed.”

        — He has a deep psychological need to please establishment figures such as the editorial board of the Washington Post, David Brooks, and the rest of what passes for a DC class of opinion leaders.

        — He harbors resentment against liberals and wants to show them who’s boss.

        — He is wary of mounting a full-throated defense of deficit spending during a time of recession because he knows that government spending in this country is tied up inextricably with issues of race and that as a Black man he cannot activate those latent prejudices among the electorate.

        I think the likeliest explanation is the poll-tested strategy one. Which ones did I leave out?

        • not a mind-reader

          so I can’t say. To me he appears to be reluctant to challenge any powerful interest group, even when he “knows better.” That’s why he appointed so many people with close Wall Street connections and quickly abandoned most of his campaign promises on health care reform.

          I read somewhere that the best way to convince Obama to do something is to tell him, “This won’t be popular, but it’s the right thing to do.” Maybe he believes that some of this stuff is the right policy.

          If he’s following a poll-tested strategy, he’s not doing it well, because polls repeatedly show that jobs/economy are a higher priority than deficit reduction for most Americans.

          Bill Clinton also shifted his priorities from “putting people first” to deficit reduction after being told that the bond markets wouldn’t tolerate some of the stuff he campaigned on doing.  

          • Only politically viable alternative?

            No matter what Harkin or BH readers say, there is absolutely 0% chance of congressional passage for the approach Harkin and his fellow liberals want. That’s not where the country or the politicians are, not even D controlled Senate. People want focus on employment and economy, but not through more government spending.

            It seems Obama is trying to balance the competing and in many ways contradictory issues. From my perspective, he seems to focus on politically viable, less destructive (less immediate cuts, more in the future) alternatives.

            • we'll find out

              how politically viable Obama’s approach was about 14 months from how. Given the state of the economy and his weak leadership, he is lucky to have even a remote chance of being re-elected.

              During the 2008 campaign, how many times did Obama promise to get us out of Iraq and spend the $200 billion a year (or so) we’d save on domestic investments? Presumably he was aware that that would be a popular course. It also would have been a lot better for the economy. Instead we’re spending more combined in Iraq and Afghanistan under Obama than we were under Bush.  

              • You are absolutely right

                Obama will be lucky to get re-elected. The odds are definitely against him. Obviously that is not news to him. Axelrod told him a couple of days before the election: “We have good news and bad news for you. Good news is, it looks like you are going to win. The bad news is, it looks like you are going to win.”

                What infuriates me with these po’d liberals is that they act like the market crash of fall 2008 and the election tsunami of 2010 didn’t happen. Also, the vast majority of the 2007-2008 election season was campaigned under completely different circumstances compared to the end of September/October 2008.

                And of course, we should always remember that campaigning and governing are two completely different things. This certainly applies to Obama with his soaring rhetoric. But it also applies to Perry & co. Can’t wait to see the next R president, likely in Jan. 2013, trying to balance his/her campaign rhetoric with realities of governing! And most amusingly, can’t wait to hear Harkin and his fellow liberals condemn the R president’s priorities. Makes me think of those Nader voters in Florida in 2000. I bet Gore didn’t seem that bad in retrospect, after a few years of W.

          • I assume Obama is doing his own polling

            not exclusively relying on public polls, which say lots of things, much of it self-contradictory.

            Polls on issues also rarely get into opinion intensity. For example, polls consistently show that people favor higher taxes on the rich. Yet, when taxes on the rich are not raised, there is little to no public outcry. No one is facing angry voters at town halls yelling at them for failing to raise taxes on the rich.

            I also agree with RF below and SJK above that while people “want action on jobs,” they also do not want to see more spending. I suspect the opinion intensity on the second issue is stronger than the first.

    • Tax cuts = deficits

      “So if there’s one thing you should take away, it’s this: The ten-year deficit problem is a tax cut problem. No tax cuts, no problem. This won’t solve the all the long-term problems, but it’s a good start.”

      from http://baselinescenario.com/20…

      It’s not a question of “excessive investment that we can’t afford.”  The real problem is the Bush/Obama tax cuts.

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