Federal budget: Why is Obama playing the Republicans' game? Discretionary spending cuts are kid stuff.

How to protect your pockets.
Feb. 14 2011 7:03 PM

The Terminator

Why is Obama playing the Republicans' game? Discretionary spending cuts are kid stuff.

(Continued from Page 1)

The list of terminations comes out of the gate with three plausible-sounding cuts. A grant program to fight teen pregnancy is being zeroed out, but the Obama administration last year created a new program to do the same thing that's better-funded. The Centers for Disease Control and Prevention has a program to research agricultural, forestry, and fishing hazards, which does seem a little far afield from its core mission. A Housing and Urban Development program to redevelop contaminated factories and warehouses is apparently duplicative of other programs.

But why end the Bureau of Labor Statistics's International Labor Comparison program, "which provides international comparisons of employment, compensation, productivity, and price data"? Such information is useful to labor economists (and—full disclosure—it's the sort of information I'll be drawing on for the book on income inequality that I'm writing). "This is depressing," Tom Geoghegan e-mailed me. Geoghegan is author of Were You Born on the Wrong Continent?, a thoughtful exploration of the differences between U.S.- and German-style capitalism of the sort that will henceforth be more difficult to undertake.

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The Obama administration would also eliminate a grant program that helps community colleges provide job training; I wasn't aware that community colleges had perfected job training to the point where they no longer need federal help. (Apparently they already get federal help from the federal Trade Adjustment Assistance program, but given current structural challenges in the economy, they can probably use all the help they can get.) Subsidies to children's hospitals? Let the little brats fend for themselves. A program to reduce diesel emissions? Hell, they've already reduced 'em plenty! A program to protect intercity buses from possible terrorist attack? All the best people take the train, fly, or drive. The Bart Stupak Olympic Scholarship? He retired from Congress, and, besides, that rat-fink almost sank Obamacare! The [Robert] Byrd Honors Scholarship? Nice guy, but he's dead now and can't raise a ruckus.

None of these programs is so essential that eliminating it will prove disastrous. But neither is any so expensive that eliminating it will save much money. (The BLS, for instance, spends all of $2 million annually to collect its international labor statistics.) Meanwhile, the hardship many of the Obama administration's planned cuts impose on program beneficiaries will far exceed their paltry budgetary benefit. For example, the administration proposes saving $984 million in 2012 by no longer having the government pay interest on loans to students seeking advanced degrees while those students are still in school. Many of these students, it reasons, will end up in high-paying jobs.

No doubt. But many of them won't. One Barack Obama worked as a community organizer after he left Harvard Law School. He's doing all right now financially, but he had some lean financial years. Should he have worked for Milbank, Tweed instead? The Low-Income Home Energy Assistance Program spent $5.1 billion this year to help poor families pay for heating in the winter and air conditioning in the summer. Next year, they'll have to make do with $2.57 billion. "Current energy price forecasts predict relatively moderate price increases for winter 2011-2012 compared to this winter," the administration says to justify this cut. Current energy price forecasts predicting what will happen one full year from now and fifty cents will buy you a cup of coffee.

The way to reduce the deficit is to cut entitlement spending by phasing it out at higher incomes; cut a Pentagon budget that's more than doubled during the past decade without providing the United States the means or the will to locate Osama Bin Laden; restore taxes on incomes above $250,000 to where they were when Bill Clinton left office (an option Obama agreed to defer until 2013); and raise tax rates on incomes well above $250,000, in recognition of the fact that incomes at the tippy top of income distribution have enjoyed a stratospheric climb for the past 30 years. To pretend that there's much money to save by squeezing the same 15 percent that's already been squeezed time and again neither achieves much in budget savings nor demonstrates much concern for what gets lost and who gets hurt. It's a stupid political game, invented by Republicans but now played by both parties. The president shouldn't play it.

Also in Slate, John Dickerson suspects a better, secret budget deal may be in the works. Fred Kaplan lays out even more potential cuts to the Pentagon budget. David Weigel reports on Republican Paul Ryan's critique of the White House budget. Annie Lowrey describes how your household budget would look if you spent money like the federal government.

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