Wednesday, October 30, 2013

No, Obama Administration. We Don't Need to Cut Social Security.

Their never ending quest continues. The level of urgency and frustration here from Sperling is telling:
In his usual elliptical and prolix way, Sperling seemed to be laying out the contours of a bargain with Republicans that’s quite a bit different that what most Democrats seem prepared to accept. What stood out to me was how he kept winding back around to the importance of entitlement cuts as part of a deal, as if he were laying the groundwork to blunt liberal anger. Right now, the official Democratic position is that they’ll accept entitlement cuts only in exchange for new revenue—something most Republicans reject. If Sperling mentioned revenue at all, I missed it.
But he dwelt at length—and with some passion—on the need for more stimulus, though he avoided using that dreaded word. He seemed to hint at a budget deal that would trade near-term “investment” (the preferred euphemism for “stimulus’) for long-term entitlement reform. That would be an important shift and one that would certainly upset many Democrats.

Here’s some of what Sperling had to say. He led off with the importance of entitlement cuts. (All emphasis is mine):

“Sometimes here [in Washington] we start to think that the end goal of our public policy is to hit a particular budget or spending or revenue metric—as if those are the goals in and of itself. But it’s important to remember that each of these metrics … are means to larger goals. … Right now, I think there is among a lot of people a consensus as to what the ingredients of a pro-growth fiscal policy are. It would be a fiscal policy that—yes—did give more confidence in the long run that we have a path on entitlement spending and revenues that gives confidence in our long-term fiscal position and that we’re not pushing off unbearable burdens to the next generation. That is very important.”

That’s a vague, guarded, jargon-y Washington way of saying, “We’re going to have to accept entitlement cuts—get used to it.” Then came the justification, which was the weakness of the economic recovery:

“You have to think about this as part of an overall pro-growth, pro-jobs strategy. Also, there’s no question that right now we still need to give this recovery more momentum. We cannot possibly be satisfied with the levels of projected growth when we are still coming back from the worst recession since the Great Depression.

Sperling repeatedly drew a distinction between a deal that “hits a particular metric” and one that is “pro-growth,” leaving no doubt that the White House favors the latter. I took “hits a particular metric” to mean “secures X amount of dollars in new tax revenue.” Sperling’s clear implication was that that’s not something the White House is concerned about.
They won't stop. As long as Obama is in the White House, he will continue to use his political capital on pushing for a grand bargain that cuts social security. That's the reality of it, and how we respond is on us.

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