With Strong GOP Criticism, Obama Outlines Deficit Vision
EmailABC News' Sunlen Miller and Jake Tapper report:
In a forty-four minute speech today that was more against the Republican’s deficit proposal than offering detailed specifics of his own, President Obama today laid out his “vision” to get the nation back on a track of fiscal responsibility.
In a speech could be argued was his first campaign speech of 2012 , as the president himself even admitting that his criticism of the Republicans plan was “strong”, the president laid out in clear terms who he considers the victims of the Republican’s budget plan would be, and painted the nation as a “fundamentally different America” if the Republican’s plan would be adopted.
Congressman Paul Ryan in the audience took listened and took notes as President Obama stomped on his budget plan although noting that the goals of deficit reduction and addressing the challenge of Medicare/Medicaid are worthy ones within the Wisconsin Republican’s budget.
“But the way this plan achieves those goals would lead to a fundamentally different America than the one we've known, certainly in my lifetime,” Obama said, “I think it would be fundamentally than what we've known throughout our history: a 70 percent cut in clean energy, a 25 percent cut in education, a 30 percent cut in transportation, cuts in college Pell grants that will grow to more than $1,000 per year.”
The president said these kinds of cuts tell the nation that “we can't afford the America that I believe in and, I think, you believe in,” adding that he believes “it paints a vision of our future that is deeply pessimistic.“
The president said that put simply the Republicans’ plan “ends Medicare as we know it,” and will make 50 million American lose their health insurance.
Going one step further the president identified those people who would have to “fend for themselves” if the Republican plan was adopted.
“Many are somebody's grandparents, maybe one of yours, who wouldn't be able afford nursing home care without Medicaid. Many are poor children. Some are middle-class families who have children with autism or Down's syndrome. Some of these kids with disabilities are — the disabilities are so severe that they require 24-hour care. These are the Americans we'd be telling to fend for themselves.”
The president said that the Republican vision is “is less about reducing the deficit than it is about changing the basic social compact in America. “
By contrast, the president declared that the America he knows is one where reforms and sacrifice are made, without sacrificing the country that he knows.
“And as long as I'm president, we won't,” he said.
The president today proposed $4 trillion in deficit reduction over 12 years – with the goal of $2 trillion in spending cuts across the budget, lowering interest payments on the debt by $1 trillion, and tax reform to cut about $1 trillion in tax expenditures -spending in the tax code.
The road to get there – as outlined by the president – is to keep annual domestic spending low, finding additional savings in the defense budget, further reduce health care spending in the budget, by not extending the tax cuts to the nation’s wealthiest Americans, and reducing spending in the tax code.
The administration’s plan includes a “failsafe” trigger that the president says will hold Washington accountable.
“If by 2014 our debt is not projected to fall as a share of the economy, if we haven't hit our targets, if Congress has failed to act, then my plan will require us to come together and make up the additional savings with more spending cuts and more spending reductions in the tax code.”
The president noted that there will be those who will “vigorously disagree” with his approach from both sides.
For Republicans – who may disagree with raising taxes, even on the wealthiest Americans Obama noted that “it’s just an article of faith to them,” and defended his call to not extend those tax cuts to the nation’s highest earners.
He framed it yet again as a patriotic duty to the nation’s wealthy class.
“They want to give people like me a $200,000 tax cut that's paid for by asking 33 seniors each to pay $6,000 more in health costs. That's not right, and it's not going to happen as long as I'm president. Obama said, “ I believe that most wealthy Americans would agree with me. They want to give back to their country, a country that's done so much for them.
It's just Washington hasn't asked them to. “
For Democrats – who may disagree that there shouldn’t be any talk about cutting spending until the economy is fully recovered; the president said he is “sympathetic” to this view, which is why he supported the payroll tax cuts passed in December.
“Doing nothing on the deficit is just not an option. Our debt has grown so large that we could do real damage to the economy if we don't begin a process now to get our fiscal house in order. “
To those calling for no reforms to Medicare, Medicaid or Social Security “out of a fear that any talk of change to these programs will immediately usher in the sort of steps that the House Republicans have proposed,” the president said he can understand the fears.
“But I guarantee that if we don't make any changes at all, we won't be able to keep our commitment to a retiring generation that will live longer and will face higher health care costs than those who came before.”
In early May the Vice President will begin regular meetings with leaders in both parties, the president said, with the aim of reaching a final agreement on a plan by the end of June.
“I don't expect the details in any final agreement to look exactly like the approach I laid out today,” he added, “And though I'm sure the criticism of what I've said here today will be fierce in some quarters, and my critique of the House Republican approach has been strong, Americans deserve and will demand that we all make an effort to bridge our differences, and find common ground. “
The president attempted to put a personal touch to the debate over budgets and deficits, framing it as more than just numbers on a page.
“What we've been debating here in Washington over the last few weeks will affect the lives of the students here and families all across America in potentially profound ways,” he said, “It's about the kind of future that we want. It's about the kind of country that we believe in.”
Again attempting to tug at the heartstrings of patriotic Americans weaved in the rhetoric of his speech, the president said that the sense of responsibility on the nation’s debt and deficit is not just a partisan feeling or Democratic of Republican idea.
“It's patriotism.”
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“If by 2014 our debt is not projected to fall as a share of the economy, if we haven’t hit our targets, if Congress has failed to act, then my plan will require us to come together and make up the additional savings with more spending cuts and more spending reductions in the tax code.”
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That’s all we need to know, Mr. President.
You don’t have a plan, you have hope with a failsafe trigger as backup.
Let’s all pray then.
Posted by: Mike, CO | April 13, 2011, 4:37 pm 4:37 pm
His plan is as credible as his Hawaiian birth history.
Posted by: Nephron | April 13, 2011, 4:43 pm 4:43 pm
“President Obama today laid out his “vision” to get the nation back on a track of fiscal responsibility.” – ABC News
NoBo needs his eyes checked and a pair of thick glasses ordered right away.
He also needs to throw away those rose colored shades he’s been wearing since he was a teenager.
Posted by: Noz | April 13, 2011, 4:52 pm 4:52 pm
the president said that the sense of responsibility on the nation’s debt and deficit is not just a partisan feeling or Democratic of Republican idea.
“It’s patriotism.”
Well then let’s pass the 5% minimum income tax paid regardless of income level or deductions. That way the 50% or so American’s who pay nothing can be patriotic as well as companies such as GE.
We wouldn’t want to leave out these Americans or Companies. Just think how bad they’d feel not helping to pay off our debt.
Posted by: Noz | April 13, 2011, 4:57 pm 4:57 pm
“ends medicare as we know it” must be the focus grouped message winner of the week. I’ve heard that repeated verbatim about 12,500 times.
Posted by: Bo | April 13, 2011, 5:03 pm 5:03 pm
But the way this plan achieves those goals would lead to a fundamentally different America than the one we’ve known, …
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As if Obama’s judgement has never been off before.
Obama could have taken responsibility for not halving the deficit, as he claimed when he entered office. Instead he increased the deficit.
Today, Obama says “we found ourselves” with debt when he took office. Clearly, he thinks we are dumb. His use of the passive voice in this context is put him in company with excuse-making phonies.
Posted by: Mike, CO | April 13, 2011, 5:13 pm 5:13 pm
“”"”"But the way this plan achieves those goals would lead to a fundamentally different America “”"”"
Didn’t he campaign on change in 2008? Isn’t a fundamentally different America a changed America? So change is no longer good? This guy is messed up.
Posted by: lfrichar | April 13, 2011, 5:25 pm 5:25 pm
more people dissaproved of his speech on msnbc than approved it. that really tells you how bad it was.
Posted by: catman | April 13, 2011, 5:52 pm 5:52 pm
And the Presidents plans and visions for Americans aren’t about changing America? I’m not an economist, but I think we don’t have a problem with revenues, we have a problem with SPENDING>>>by both sides…but the past two years by this administration…he should saved the speech for the next campaign stop…oh wait, this was a campaign stop!!!
Posted by: Dionisia | April 13, 2011, 6:29 pm 6:29 pm
Well then let’s pass the 5% minimum income tax paid regardless of income level or deductions. That way the 50% or so American’s who pay nothing can be patriotic as well as companies such as GE.
We wouldn’t want to leave out these Americans or Companies. Just think how bad they’d feel not helping to pay off our debt.
Posted by: Noz | Apr 13, 2011 4:57:12 PM
Amen to that, Noz. If he is REALLY serious about EVERYONE sacrificing, then that very thing needs to happen. I don’t care if it’s called racist, class warfare, cruelty, or whatever, the fact is that there are MANY ‘government spongers’ across this country who have no intention of working or contributing back. They want, want, want and as long as Obama is in power, they will continue to get, get, get. But the free ride MUST come to an end for those who are capable of working and supporting themselves. I see it everyday, just in my little hometown… the people residing in free/low cost housing, receiving welfare checks, receiving food stamps, receiving free/reduced cost healthcare and the more babies, the more money. It is aggrivating to say the least when I see these people who COULD be working (but never have and have no intention of it), living off of MY tax dollars. Does anyone in their right mind not realize that THESE people contribute to our national deficit as well? Where is the outrage about them?
I realize that the big wigs need to pay their fair share of taxes. I would certainly hope that problem gets fixed. But having said that, at least we can say that they ARE contributing back by providing jobs. The spongers? They get ‘paid by the government’ for doing…nothing.
So in the middle somewhere, there are those people like me, who work a not-so-hhigh-paying job, but manage to make ends meet by being frugal and responsible. You’ll see me at the grocery store, with a small cart of groceries and a handful of coupons. I’ll be the one standing behind the person I KNOW is a ‘sponger’, and wondering why I can’t have several carts of groceries, paid for by the government. Oh, and the best part, after using the food stamps, there always seems to be money left in the pocket for cigarettes, beer, lottery tickets…
Posted by: Shoe | April 13, 2011, 6:32 pm 6:32 pm
The contrast between serious intellectual thought and pejorative cowardly partisan rhetoric could not be more stark. Please watch Paul Ryan’s incredible response to Obama. The President is shrinking and today he became very very small.
Posted by: pauldia | April 13, 2011, 6:51 pm 6:51 pm
“Does anyone in their right mind not realize that THESE people contribute to our national deficit as well? Where is the outrage about them?”
The fact is that in a capitalist economy, they are necessary. They serve to keep wages lower for everyone else, thus increasing corporate profit. Just think of it as a subsidy for corporate America.
(corporate America on second thought seems like an oxymoron – corporations unlike people have no allegiances)
Posted by: Flash Override | April 13, 2011, 7:06 pm 7:06 pm
Pauldia, you should know that you can’t find one example of the model Ryan proposes slowing costs to even half what Ryan predicts. That’s why his plan really isn’t a plan — it’s just a way to make the numbers work so he can “balance the budget” without tax increases and make some conservative changes to entitlements.
None of these insurance system reforms will work anyway, because the central problem in health care is the insurance system to begin with.
Posted by: Flash Override | April 13, 2011, 7:12 pm 7:12 pm
Better check with Obama’s half sister about this vision thing.
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That’s a great point. Since Obama’s commissions haven’t found the answers to Obama’s budgetary problems, who else should he look to for answers but God and family?
He already has many options on the table, but it appears he can’t decide. The reason for this indecision is that he is not comfortable with the consequences of making a decision; specifically, the political consequences, and the ideological consequences.
In the speech today Obama tried to argue that the Republican ideology is in conflict with American values. That shows that he is not a pragmatist, rather he is an ideologue.
With ideologues, you wonder where they learned their ideology. There is no question that Obama is not a Clinton, but if he is not Clinton, then who is he?
Where did he get the idea that people, upon birth in the US, have automatically sworn an oath to their fellow citizens to provide them with health care?
One thing is for sure — he did not get this from the constitution. It is a new idea that he formed, in the rather naive way that Democrats often form ideas. It is the idea that we should make up the rules as we go along. Making up rules is what the constitution is supposed to prevent, but it is what Obama promotes.
Obama is a loose cannon, with unproven, ill-considered ideology, seeking to supplant the constitution with his own vision. His speech today is further evidence of this.
Posted by: Mike, CO | April 13, 2011, 7:24 pm 7:24 pm
“None of these insurance system reforms will work anyway, because the central problem in health care is the insurance system to begin with.”
Posted by: Flash Override | Apr 13, 2011 7:12:08 PM
Insurance premiums are driven up by the skyrocketing cost of healthcare, not the other way around. Medicare and Medicaid are dramatically increasing demand for drugs and services. Since those programs only partially cover providers’ costs, the uncompensated costs are transferred to everyone else with private insurance (or paying cash). One notable exception is generic drugs, whose costs dropped through the floor thanks to pioneering companies like Wal-Mart.
Posted by: Chuck | April 13, 2011, 7:31 pm 7:31 pm
Chuck, you are so naive. Premiums are driven by the performance of the insurance company’s portfolio, and by their ability to get away with it.
Wall-Mart keeps their prices low by making the rest of us pay for their employee’s health care.
Posted by: Flash Override | April 13, 2011, 7:43 pm 7:43 pm
Who on earth thought President Obama would want to raise taxes and harp at how bad the republican plan was?
I am shocked! Shocked I tell you!
Posted by: david | April 13, 2011, 7:48 pm 7:48 pm
Posted by: Flash Override | Apr 13, 2011 7:43:51 PM
You didn’t debunk anything I posted. Ask your doctor how Medicare and Medicaid have affected their practice the past few years. Also ask them how regulations have affected their ability to deliver services at a lower cost. You’ll get an earful.
Posted by: Chuck | April 13, 2011, 7:54 pm 7:54 pm
Posted by: Flash Override | Apr 13, 2011 7:43:51 PM
Google “Industry Browser – Healthcare – Health Care Plans – Company List”. The average net profit margin across the entire industry is 4.2%. Humana’s is closer to 1%.
Apple Computer’s is 22.5%. Google’s is 30.13%. The soft drink beverage industry averages 17.4%.
Posted by: Chuck | April 13, 2011, 8:09 pm 8:09 pm
If you want a man to do something well, let him strive to make a profit from it. If you want a job done poorly, wastefully and inefficiently, have the government do it.
Posted by: Fascist Hyena | April 13, 2011, 9:37 pm 9:37 pm
Look around you at everything within your field of view. Identify the ones that weren’t made by someone seeking a profit.
(By the way, the resident economic dunce in the White House thinks profit is part of overhead.)
Posted by: Fascist Hyena | April 13, 2011, 9:39 pm 9:39 pm
Man ,whats going on with Government? Biden snoozing, the woman behind Biden bent over, perhaps barfing ( or worse sniffing), the tax crook looking like he was bored silly, the woman behind him checking her eyes for daylight leaks, air traffic controllers snoozing while planes are landing,the air force bombing Libya, Professorships offered to dictators and Obama pulling out a retro speech written, perhaps for Tip O’Neal, during the Reagan era that describes all the torture and deprivation the republicans want to inflict on old people and society as a whole.
Wow.
Posted by: david | April 13, 2011, 9:57 pm 9:57 pm
If you want a man to do something well, let him strive to make a profit from it. If you want a job done poorly, wastefully and inefficiently, have the government do it
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There are plenty of cases where services are offered more efficiently by government, and in some cases would not be offered at all instead. Police and fire protection, pollution control, safety inspection and certain infrastructural projects are just a few of the classic examples.
Posted by: Skip | April 13, 2011, 10:09 pm 10:09 pm
Remember when teachers, public employees, Planned Parenthood, NPR and PBS crashed the stock market, wiped out half of our 401Ks, took trillions in TARP money, spilled oil in the Gulf of Mexico, gave themselves billions in bonuses, and paid no taxes? Yeah, me neither.
Posted by: Flash Override | April 13, 2011, 11:22 pm 11:22 pm
There are plenty of cases where services are offered more efficiently by government, and in some cases would not be offered at all instead. Police and fire protection, pollution control, safety inspection and certain infrastructural projects are just a few of the classic examples.
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Many of the examples you give are explicitly mentioned in the constitution. Others are not, and have been added incrementally over time.
The “classic” example of “pollution control” is not that classic. It is a rather new concept, created by Nixon. By the way, Nixon was also responsible for “health care” as we know it.
Eisenhower understood the need for an interstate highway system, and thus created them. The idea is that states could benefit from federal funding of highway projects. That “template” was then used for other federal “infrastructure” projects. One of those projects was social security.
However, social security started as a safety net for only those who were too indigent. It was an insurance policy.
What it has become now, is a basis for retirement. That is in conflict with its original intent.
It is no wonder that a program that started for other reasons now threatens to bring down the country as a whole. But it is popular!
Well, maybe it wouldn’t be so popular if Obama would admit that it is broken, instead of perpetrating the myth that social security is solvent.
There is no lock box, the social security money is spent, and Obama is in denial. Even worse, he is deceiving us by saying that the “rich” can fund this program that is already bankrupt.
Shame on Obama, and shame on those who would pretend guarantee the well-being of individuals when it is out of their control to do so. You cannot make promises you cannot keep — or rather you can promise, but if you don’t keep your promise, expect to be held accountable. Obama is avoiding accountability, it is that simple.
Posted by: Mike, CO | April 13, 2011, 11:29 pm 11:29 pm
Had this forum not been the Asylem of the … I would have said America’s best days are behind her. Fortunately, this is now what used to be a citizen’s council meeting!
Posted by: Dabu | April 13, 2011, 11:54 pm 11:54 pm
Classic Flash Override!:
“Remember when teachers, public employees, Planned Parenthood, NPR and PBS crashed the stock market, wiped out half of our 401Ks, took trillions in TARP money, spilled oil in the Gulf of Mexico, gave themselves billions in bonuses, and paid no taxes? Yeah, me neither.”
Thanks for making me smile!
Posted by: Lydia | April 14, 2011, 10:54 am 10:54 am
Shoe, have you ever looked up the tiny percentage of our budget that is attributed to welfare and food stamps?
I didn’t think so.
While you’re at it look up the estimates of taxes corporate america has skipped out on, thanks to their paid lobbyists getting those loopholes inserted.
Posted by: Lydia | April 14, 2011, 10:58 am 10:58 am
Mike, co., you should realize that the country and its needs are completely different from those of 1776.
Of course back then there wasn’t any pollution control needed, or health care insurance (as doctors could do precious little to save you) or transportation budgets or the enormous Pentagon budget.
As for the government providing health insurance, that isn’t happening with the Affordable Care Act. The government is providing some dollars for premiums for the poorest, but they do that now with medicaid. In this day and age, insurance is a necessity for ‘life, liberty and the pursuit of happiness.’
I’m glad people will have to buy insurance, I don’t think its fair that those freebies at the hospitals make my insurance premiums much more expensive.
Posted by: Lydia | April 14, 2011, 11:03 am 11:03 am
Shoe, your idea of food stamps is wildly inaccurate. The people I grew up with that used them, and some folks I know now that rely on them, really don’t get that much per week. Read the tables and you’ll see the truth.
Posted by: Lydia | April 14, 2011, 11:05 am 11:05 am
Chuck, while Medicare runs on a 4% overhead, most insurance companies eat up 30 to 40% of premiums on profits and running their company.
That is one big reason that the insurance companies are fighting to kill the Affordable Care Act. In 2014, they will be limited to spending 15 to 20% of premiums on overhead. Those ceo’s don’t want to cut back their bloated salaries!
Anyone who thinks the insurance companies are spending millions to fight health care reform because it will be bad for consumers, is living in a fantasy land.
And anyone commenting here, or blasting it in public has either never read the actual health reform legislation or they are shilling for the insurance companies.
I’ve read most of it and it will save us consumers money, give us better coverage and protect us when we are our sickest from greedy insurance execs.
Posted by: Lydia | April 14, 2011, 11:10 am 11:10 am
Mike, co., you should realize that the country and its needs are completely different from those of 1776.
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Well, a straw man argument. That is par for the course on this board. I realize they needs of the country are different from 1776. Everyone does.
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Of course back then there wasn’t any pollution control needed, or health care insurance (as doctors could do precious little to save you) or transportation budgets or the enormous Pentagon budget.
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Actually, there was “pollution control needed”. You probably don’t remember the soot problems that were a result of burning coal.
Now, we try to have a higher standard of living. And we reduced gasoline consumption by increasing the efficiency of our vehicles.
However, Obama believes that comes into conflict with mother nature. And as a result, we must lower our standard of living.
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As for the government providing health insurance, that isn’t happening with the Affordable Care Act. The government is providing some dollars for premiums for the poorest, but they do that now with medicaid.
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Why is the total cost of medicare and medicaid in the trillions? If the government is not providing that money, who is?
Your sentence above suggests that government is not providing health care, when it is providing health care to the people who need the most expensive kind of health care. The elderly.
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In this day and age, insurance is a necessity for ‘life, liberty and the pursuit of happiness.’
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Don’t confuse “necessity” with “entitlement”. Necessities are food, shelter, and water.
Have you ever hear of the hippocratic oath? Doctors swear to do no harm. They don’t swear to save people, regardless of the circumstances. They can’t, and they won’t, even if the government tries to coerce them with price controls.
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I’m glad people will have to buy insurance, I don’t think its fair that those freebies at the hospitals make my insurance premiums much more expensive.
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The constitution prevents people from having to buy things. There was no provision for it. If you want a constitutional amendment that says the government will force people to buy health insurance, petition congress.
Posted by: Mike, CO | April 14, 2011, 12:07 pm 12:07 pm