The Atlantic Home

Ok, it's a fast Friday. But still.

1. Totally agree with Ben Smith's thought: opposition to the Employee Free Choice Act, or "card check," has become an enormous contraption -a "full employment program" for out of work (but talented) Republicans. There's a reason for this, though. Forget the budget yesterday; forget changes to LIFO accounting; the major corporate and small business lobbies believe  -- they believe this sincerely -- that card check would be the single most disasterous policy change since the government began to tax corporations.  There are, potentially, billions -- trillions? -- at stake. So a multi-million dollar lobbying effort ought not be surprising.

2. For some reason, Mickey Kaus believes that I'm an apostle of the AFL-CIO and believe that the Democratic Congress will take up card check this year. Well, whatever. But as to the timing: I don't think the White House wants card check this year; I don't think that Democrats have the votes for it. I also don't think that the real battle has begun; both sides are capable of manipulating public opinion polls, but I don't think the American people have focused on the debate itself. I do know that the anti-card check side believes that it has won a framing victory about the "secret vote."

3.  Three very important things to read: The Wall Street Journal on Obama's willingness to take the sacred cow of mortgage deductions and Josh Gerstein's account of the debate within Democratic circles; PD-1 -- the presidential policy directive on reorganizing the homeland security and counterrorism structure inside the White House.

4. Longtime McCain adviser Mark Salter, now in private practice, on what Bobby Jindal's speech lacked:

The over thought staging of his speech (he should have appeared at seated at his desk or in an armchair rather than attempt to imitate a presidential stroll into the East Room), and the curiously emphatic and singsong enunciation of certain words in his address suggest too much coaching.  That said, I doubt one missed opportunity will seriously cloud this promising young politician's future, and I still look to him as one of a few prominent Republican officeholders with the talent and vision to help lead the Party out of the political wilderness it now finds itself in. 

More disappointing than Jindal's delivery was the address itself.  It failed to offer worried Americans compelling alternatives to the sweeping proposals offered by the President, which considered together, promise the greatest government growth and intrusion into areas of private responsibilities since Lyndon Johnson's Great Society.  Instead, Jindal offered an anodyne recitation of Republican opposition to government spending and high taxes.   Americans, even those who are not in danger of losing their jobs or homes, want to know their government has a feasible plan to get us out of the economic mess that has ravaged savings for their retirement and their children's college education.

Jindal spent a considerable portion of his address decrying government incompetence, using the example of the federal government's woeful response to Hurricane Katrina as a reason not to trust it to do anything.  But in these times, Americans aren't satisfied with an alternative that only opposes and doesn't propose solutions to the myriad problems confronting us from ruinously expensive health care to inadequate public education to crumbling infrastructure.  They are looking for leaders with ideas for making government do better what it must do.  Jindal has a reputation for innovative and effective policy ideas for many of the most pressing public concerns.  He should have discussed a few of those Tuesday night as alternatives to the Democrats' insistence on spending more on government programs that have already lost the confidence of the American people.

A daily afternoon news summary, in five parts; what you need to know; also, a hint of science. We twitter.

1.  Jane Mayer: : Ali Saleh al-Marri, the "illegal enemy combatant" held in a Navy brig in Charleston, SC,  may soon be indicted in federal court -- this is a definitive break from the Bush Administration's policy and theory of detention for alleged terrorists; proponents will call this a move back toward the sunlight.... .....Obama's budget raises taxes during a recession, right?  .... Well.... sort of.  Many of the new taxes, including the reduction in itemized deductions for wealthier Americans, don't kick in until 2011... that's after the recession will have ended, according to Obama's own budget assumptions. It's a neat little trick ....  Manufacturers are up in arms about budget's cutting of LIFO  ...which would change the way they account for the goods they build. The administration calls this a "tax loophole." ....  Your Daily Orszag: Federal budget deficits were on track to reach 9 trillion by 2019.... This is a real tweet from Rep. Roy Blunt: "I met with the Missouri Geographic Alliance today. Last year I received their Geography Legislator of the Year award."

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It created a little stir when it was pulled from stimulus, but now it's in President Obama's FY 2010 budget plan.  New funding for the Medicaid Family Planning State Option will allow states to bypass a waiver process when providing services to women who don't ordinarily qualify for government aid. Advocates say it would reduce later-term abortions because lower-income women would have quicker access to doctors. A month ago, Obama urged Rep. Henry Waxman to drop the money from his portion of the stimulus bill but, the White House promised women's health groups that it would be funded through the ordinary budget process. 

"You note in a post that Obama doesn't in fact "halve" the deficit over ten years in nominal terms. Most any economist or budget geek you'd talk to would tell you that it's the deficit in %GDP terms that really matters.  According to the OMB's projections, the deficit spikes up to 12.3% of GDP in 2009. This drops to 5.9% by 2011 (the "halving") and then drops even further to stay around 3% from 2013 to 2019."

Decipher this, please. "This Budget supports additional investments in consultation with other teachers and stakeholders, to implement systems that reward strong teacher performance and help less effective teachers improve,or, if they do not, exit the classroom." (pp.24)   So -- does this budget include the beginning of performance pay for teachers? 

The New York Times: To Pay for Health Care, Obama Looks to Taxes on Affluent

The Washington Post: Obama Proposes $634 Billion Fund For Health Care

You would think that, by scheduling the release of the health care portion of the budget outline for the day before the official release, the administration either wanted to try to bury the tax hike story by allowing Obama to reset it, or it wanted to signal to allies that he was serious about health care reform.  My guess is that the administration doesn't care about the tax arguments and is more interested in setting the stage for health care reform.

"Democratic leaders say their legislation will grow the economy.  What it will do is grow the government, increase our taxes down the line, and saddle future generations with debt.  Who among us would ask our children for a loan, so we could spend money we do not have, on things we do not need?  That is precisely what the Democrats in Congress just did.  It's irresponsible.  And it's no way to strengthen our economy, create jobs, or build a prosperous future for our children.

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A daily  afternoon news summary, in five parts; what you need to know; also, a hint of science.

1. President Obama's speech will run approx. 50 to 60 minutes; Gov. Jindal's response runs 10-15;.....  Pollster Stan Greenberg is conducting dial groups for public consumption; the DNC is (probably) paying for dial groups of their own for consumption by the Axelrod/Gaspard shop at the White House. ..... Obama's average approval rating is... average, for presidents at the end of their first month. Gallup pegs the number as less than 60% "for the first time" since becoming president....defense hawks watch for Obama's indication of deep Pentagon budget cuts.....get Larry Summers some 5 Hour Energy! .... Ahead of speech, GOP and Dems spar over message; GOP's message: the government can't spend without a plan to pay for things, and Obama's budget plan risks burdening future generations...... The Dem message: the GOP has no credibility on fiscal responsibility whatsover ..... Sen. Schumer introduces legislation to force states to accept stimulus money.....Fed's Bernanke says that, with right mix of monetary policy and fiscal policy, recession could end this year.

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Watching Prof. Obama hold court yesterday made for surprisingly compelling television. Even more interesting were the non-televised breakout sessions. After the jump, the highlights, including an irritible John McCain, the prospects for a commission on long-term budget reform, Sen. Baucus's expectation of a 70-vote margin on health care reform, the floating of a VAT, Rep. Rangel's tax reform preferences, and more.

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Remarks of President Barack Obama - As Prepared for Delivery

Address to Joint Session of Congress

Tuesday, February 24^th, 2009

 

 

Madame Speaker, Mr. Vice President, Members of Congress, and the First Lady of the United States:

 

I've come here tonight not only to address the distinguished men and women in this great chamber, but to speak frankly and directly to the men and women who sent us here. 

 

I know that for many Americans watching right now, the state of our economy is a concern that rises above all others.  And rightly so.  If you haven't been personally affected by this recession, you probably know someone who has - a friend; a neighbor; a member of your family.  You don't need to hear another list of statistics to know that our economy is in crisis, because you live it every day.  It's the worry you wake up with and the source of sleepless nights.  It's the job you thought you'd retire from but now have lost; the business you built your dreams upon that's now hanging by a thread; the college acceptance letter your child had to put back in the envelope.  The impact of this recession is real, and it is everywhere.    

 

But while our economy may be weakened and our confidence shaken; though we are living through difficult and uncertain times, tonight I want every American to know this:

 

We will rebuild, we will recover, and the United States of America will emerge stronger than before. 

 

The weight of this crisis will not determine the destiny of this nation.  The answers to our problems don't lie beyond our reach.  They exist in our laboratories and universities; in our fields and our factories; in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth.  Those qualities that have made America the greatest force of progress and prosperity in human history we still possess in ample measure.  What is required now is for this country to pull together, confront boldly the challenges we face, and take responsibility for our future once more.

 

Now, if we're honest with ourselves, we'll admit that for too long, we have not always met these responsibilities - as a government or as a people.  I say this not to lay blame or look backwards, but because it is only by understanding how we arrived at this moment that we'll be able to lift ourselves out of this predicament. 

 

The fact is, our economy did not fall into decline overnight.  Nor did all of our problems begin when the housing market collapsed or the stock market sank.  We have known for decades that our survival depends on finding new sources of energy.  Yet we import more oil today than ever before.  The cost of health care eats up more and more of our savings each year, yet we keep delaying reform.  Our children will compete for jobs in a global economy that too many of our schools do not prepare them for.  And though all these challenges went unsolved, we still managed to spend more money and pile up more debt, both as individuals and through our government, than ever before.

 

In other words, we have lived through an era where too often, short-term gains were prized over long-term prosperity; where we failed to look beyond the next payment, the next quarter, or the next election.  A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future.  Regulations were gutted for the sake of a quick profit at the expense of a healthy market.  People bought homes they knew they couldn't afford from banks and lenders who pushed those bad loans anyway.  And all the while, critical debates and difficult decisions were put off for some other time on some other day. 

 

Well that day of reckoning has arrived, and the time to take charge of our future is here.

 

Now is the time to act boldly and wisely - to not only revive this economy, but to build a new foundation for lasting prosperity.  Now is the time to jumpstart job creation, re-start lending, and invest in areas like energy, health care, and education that will grow our economy, even as we make hard choices to bring our deficit down.  That is what my economic agenda is designed to do, and that's what I'd like to talk to you about tonight. 

 

It's an agenda that begins with jobs. 

 

As soon as I took office, I asked this Congress to send me a recovery plan by President's Day that would put people back to work and put money in their pockets.  Not because I believe in bigger government - I don't.  Not because I'm not mindful of the massive debt we've inherited - I am.  I called for action because the failure to do so would have cost more jobs and caused more hardships.  In fact, a failure to act would have worsened our long-term deficit by assuring weak economic growth for years.  That's why I pushed for quick action.  And tonight, I am grateful that this Congress delivered, and pleased to say that the American Recovery and Reinvestment Act is now law.   

 

Over the next two years, this plan will save or create 3.5 million jobs.  More than 90% of these jobs will be in the private sector - jobs rebuilding our roads and bridges; constructing wind turbines and solar panels; laying broadband and expanding mass transit.

 

Because of this plan, there are teachers who can now keep their jobs and educate our kids.  Health care professionals can continue caring for our sick.  There are 57 police officers who are still on the streets of Minneapolis tonight because this plan prevented the layoffs their department was about to make. 

 

Because of this plan, 95% of the working households in America will receive a tax cut - a tax cut that you will see in your paychecks beginning on April 1^st.

 

Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit for all four years of college.  And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits and continued health care coverage to help them weather this storm. 

 

I know there are some in this chamber and watching at home who are skeptical of whether this plan will work.  I understand that skepticism.  Here in Washington, we've all seen how quickly good intentions can turn into broken promises and wasteful spending.  And with a plan of this scale comes enormous responsibility to get it right.

 

That is why I have asked Vice President Biden to lead a tough, unprecedented oversight effort - because nobody messes with Joe.  I have told each member of my Cabinet as well as mayors and governors across the country that they will be held accountable by me and the American people for every dollar they spend.  I have appointed a proven and aggressive Inspector General to ferret out any and all cases of waste and fraud.  And we have created a new website called recovery.gov so that every American can find out how and where their money is being spent. 

 

So the recovery plan we passed is the first step in getting our economy back on track.  But it is just the first step.  Because even if we manage this plan flawlessly, there will be no real recovery unless we clean up the credit crisis that has severely weakened our financial system.

 

I want to speak plainly and candidly about this issue tonight, because every American should know that it directly affects you and your family's well-being.  You should also know that the money you've deposited in banks across the country is safe; your insurance is secure; and you can rely on the continued operation of our financial system.  That is not the source of concern.

 

The concern is that if we do not re-start lending in this country, our recovery will be choked off before it even begins. 

 

You see, the flow of credit is the lifeblood of our economy.  The ability to get a loan is how you finance the purchase of everything from a home to a car to a college education; how stores stock their shelves, farms buy equipment, and businesses make payroll.

 

But credit has stopped flowing the way it should.  Too many bad loans from the housing crisis have made their way onto the books of too many banks.  With so much debt and so little confidence, these banks are now fearful of lending out any more money to households, to businesses, or to each other.  When there is no lending, families can't afford to buy homes or cars.  So businesses are forced to make layoffs.  Our economy suffers even more, and credit dries up even further. 

 

That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and re-start lending.

 

We will do so in several ways.  First, we are creating a new lending fund that represents the largest effort ever to help provide auto loans, college loans, and small business loans to the consumers and entrepreneurs who keep this economy running.   

 

Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and re-finance their mortgages.  It's a plan that won't help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values - Americans who will now be able to take advantage of the lower interest rates that this plan has already helped bring about.  In fact, the average family who re-finances today can save nearly $2000 per year on their mortgage.   

 

Third, we will act with the full force of the federal government to ensure that the major banks that Americans depend on have enough confidence and enough money to lend even in more difficult times.  And when we learn that a major bank has serious problems, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy.

 

I understand that on any given day, Wall Street may be more comforted by an approach that gives banks bailouts with no strings attached, and that holds nobody accountable for their reckless decisions.  But such an approach won't solve the problem.  And our goal is to quicken the day when we re-start lending to the American people and American business and end this crisis once and for all.

 

I intend to hold these banks fully accountable for the assistance they receive, and this time, they will have to clearly demonstrate how taxpayer dollars result in more lending for the American taxpayer.  This time, CEOs won't be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet.  Those days are over. 

 

Still, this plan will require significant resources from the federal government - and yes, probably more than we've already set aside.  But while the cost of action will be great, I can assure you that the cost of inaction will be far greater, for it could result in an economy that sputters along for not months or years, but perhaps a decade.  That would be worse for our deficit, worse for business, worse for you, and worse for the next generation.  And I refuse to let that happen.     

 

I understand that when the last administration asked this Congress to provide assistance for struggling banks, Democrats and Republicans alike were infuriated by the mismanagement and results that followed.  So were the American taxpayers.  So was I. 

 

So I know how unpopular it is to be seen as helping banks right now, especially when everyone is suffering in part from their bad decisions.  I promise you - I get it. 

 

But I also know that in a time of crisis, we cannot afford to govern out of anger, or yield to the politics of the moment.  My job - our job - is to solve the problem.  Our job is to govern with a sense of responsibility.  I will not spend a single penny for the purpose of rewarding a single Wall Street executive, but I will do whatever it takes to help the small business that can't pay its workers or the family that has saved and still can't get a mortgage. 

 

That's what this is about.  It's not about helping banks - it's about helping people.  Because when credit is available again, that young family can finally buy a new home.  And then some company will hire workers to build it.  And then those workers will have money to spend, and if they can get a loan too, maybe they'll finally buy that car, or open their own business.  Investors will return to the market, and American families will see their retirement secured once more.  Slowly, but surely, confidence will return, and our economy will recover.     

 

So I ask this Congress to join me in doing whatever proves necessary.  Because we cannot consign our nation to an open-ended recession.  And to ensure that a crisis of this magnitude never happens again, I ask Congress to move quickly on legislation that will finally reform our outdated regulatory system.  It is time to put in place tough, new common-sense rules of the road so that our financial market rewards drive and innovation, and punishes short-cuts and abuse. 

 

The recovery plan and the financial stability plan are the immediate steps we're taking to revive our economy in the short-term.  But the only way to fully restore America's economic strength is to make the long-term investments that will lead to new jobs, new industries, and a renewed ability to compete with the rest of the world. The only way this century will be another American century is if we confront at last the price of our dependence on oil and the high cost of health care; the schools that aren't preparing our children and the mountain of debt they stand to inherit.  That is our responsibility.

 

In the next few days, I will submit a budget to Congress.  So often, we have come to view these documents as simply numbers on a page or laundry lists of programs.  I see this document differently.  I see it as a vision for America - as a blueprint for our future.

 

My budget does not attempt to solve every problem or address every issue.  It reflects the stark reality of what we've inherited - a trillion dollar deficit, a financial crisis, and a costly recession. 

 

Given these realities, everyone in this chamber - Democrats and Republicans - will have to sacrifice some worthy priorities for which there are no dollars.  And that includes me.  

 

But that does not mean we can afford to ignore our long-term challenges.  I reject the view that says our problems will simply take care of themselves; that says government has no role in laying the foundation for our common prosperity.

 

For history tells a different story.  History reminds us that at every moment of economic upheaval and transformation, this nation has responded with bold action and big ideas.  In the midst of civil war, we laid railroad tracks from one coast to another that spurred commerce and industry.  From the turmoil of the Industrial Revolution came a system of public high schools that prepared our citizens for a new age.  In the wake of war and depression, the GI Bill sent a generation to college and created the largest middle-class in history.  And a twilight struggle for freedom led to a nation of highways, an American on the moon, and an explosion of technology that still shapes our world. 

 

In each case, government didn't supplant private enterprise; it catalyzed private enterprise.  It created the conditions for thousands of entrepreneurs and new businesses to adapt and to thrive. 

 

We are a nation that has seen promise amid peril, and claimed opportunity from ordeal.  Now we must be that nation again.  That is why, even as it cuts back on the programs we don't need, the budget I submit will invest in the three areas that are absolutely critical to our economic future:  energy, health care, and education. 

 

It begins with energy. 

 

We know the country that harnesses the power of clean, renewable energy will lead the 21^st century.  And yet, it is China that has launched the largest effort in history to make their economy energy efficient.  We invented solar technology, but we've fallen behind countries like Germany and Japan in producing it.  New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea. 

 

Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders - and I know you don't either.  It is time for America to lead again. 

 

Thanks to our recovery plan, we will double this nation's supply of renewable energy in the next three years.  We have also made the largest investment in basic research funding in American history - an investment that will spur not only new discoveries in energy, but breakthroughs in medicine, science, and technology. 

 

We will soon lay down thousands of miles of power lines that can carry new energy to cities and towns across this country.  And we will put Americans to work making our homes and buildings more efficient so that we can save billions of dollars on our energy bills. 

 

But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy.  So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.  And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.

 

As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink.  We should not, and will not, protect them from their own bad practices.  But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win.  Millions of jobs depend on it.  Scores of communities depend on it.  And I believe the nation that invented the automobile cannot walk away from it. 

 

None of this will come without cost, nor will it be easy.  But this is America.  We don't do what's easy.  We do what is necessary to move this country forward.

 

For that same reason, we must also address the crushing cost of health care.   

 

This is a cost that now causes a bankruptcy in America every thirty seconds.  By the end of the year, it could cause 1.5 million Americans to lose their homes.  In the last eight years, premiums have grown four times faster than wages.  And in each of these years, one million more Americans have lost their health insurance.  It is one of the major reasons why small businesses close their doors and corporations ship jobs overseas.  And it's one of the largest and fastest-growing parts of our budget. 

 

Given these facts, we can no longer afford to put health care reform on hold.

 

Already, we have done more to advance the cause of health care reform in the last thirty days than we have in the last decade.  When it was days old, this Congress passed a law to provide and protect health insurance for eleven million American children whose parents work full-time.  Our recovery plan will invest in electronic health records and new technology that will reduce errors, bring down costs, ensure privacy, and save lives.  It will launch a new effort to conquer a disease that has touched the life of nearly every American by seeking a cure for cancer in our time.  And it makes the largest investment ever in preventive care, because that is one of the best ways to keep our people healthy and our costs under control. 

 

This budget builds on these reforms.  It includes an historic commitment to comprehensive health care reform - a down-payment on the principle that we must have quality, affordable health care for every American.  It's a commitment that's paid for in part by efficiencies in our system that are long overdue.  And it's a step we must take if we hope to bring down our deficit in the years to come. 

 

Now, there will be many different opinions and ideas about how to achieve reform, and that is why I'm bringing together businesses and workers, doctors and health care providers, Democrats and Republicans to begin work on this issue next week. 

 

I suffer no illusions that this will be an easy process.  It will be hard.  But I also know that nearly a century after Teddy Roosevelt first called for reform, the cost of our health care has weighed down our economy and the conscience of our nation long enough.  So let there be no doubt: health care reform cannot wait, it must not wait, and it will not wait another year.     

 

The third challenge we must address is the urgent need to expand the promise of education in America.   

 

In a global economy where the most valuable skill you can sell is your knowledge, a good education is no longer just a pathway to opportunity - it is a pre-requisite.    

 

Right now, three-quarters of the fastest-growing occupations require more than a high school diploma.  And yet, just over half of our citizens have that level of education.  We have one of the highest high school dropout rates of any industrialized nation.  And half of the students who begin college never finish. 

 

This is a prescription for economic decline, because we know the countries that out-teach us today will out-compete us tomorrow.  That is why it will be the goal of this administration to ensure that every child has access to a complete and competitive education - from the day they are born to the day they begin a career. 

 

Already, we have made an historic investment in education through the economic recovery plan.  We have dramatically expanded early childhood education and will continue to improve its quality, because we know that the most formative learning comes in those first years of life.  We have made college affordable for nearly seven million more students.  And we have provided the resources necessary to prevent painful cuts and teacher layoffs that would set back our children's progress. 

 

But we know that our schools don't just need more resources.  They need more reform.  That is why this budget creates new incentives for teacher performance; pathways for advancement, and rewards for success.  We'll invest in innovative programs that are already helping schools meet high standards and close achievement gaps.  And we will expand our commitment to charter schools.  

 

It is our responsibility as lawmakers and educators to make this system work.  But it is the responsibility of every citizen to participate in it.  And so tonight, I ask every American to commit to at least one year or more of higher education or career training.  This can be community college or a four-year school; vocational training or an apprenticeship.  But whatever the training may be, every American will need to get more than a high school diploma.  And dropping out of high school is no longer an option.  It's not just quitting on yourself, it's quitting on your country - and this country needs and values the talents of every American.  That is why we will provide the support necessary for you to complete college and meet a new goal:  by 2020, America will once again have the highest proportion of college graduates in the world.  

 

I know that the price of tuition is higher than ever, which is why if you are willing to volunteer in your neighborhood or give back to your community or serve your country, we will make sure that you can afford a higher education.  And to encourage a renewed spirit of national service for this and future generations, I ask this Congress to send me the bipartisan legislation that bears the name of Senator Orrin Hatch as well as an American who has never stopped asking what he can do for his country - Senator Edward Kennedy. 

 

These education policies will open the doors of opportunity for our children.  But it is up to us to ensure they walk through them.  In the end, there is no program or policy that can substitute for a mother or father who will attend those parent/teacher conferences, or help with homework after dinner, or turn off the TV, put away the video games, and read to their child.  I speak to you not just as a President, but as a father when I say that responsibility for our children's education must begin at home. 

 

There is, of course, another responsibility we have to our children.  And that is the responsibility to ensure that we do not pass on to them a debt they cannot pay.  With the deficit we inherited, the cost of the crisis we face, and the long-term challenges we must meet, it has never been more important to ensure that as our economy recovers, we do what it takes to bring this deficit down.

 

I'm proud that we passed the recovery plan free of earmarks, and I want to pass a budget next year that ensures that each dollar we spend reflects only our most important national priorities. 

 

Yesterday, I held a fiscal summit where I pledged to cut the deficit in half by the end of my first term in office.  My administration has also begun to go line by line through the federal budget in order to eliminate wasteful and ineffective programs.  As you can imagine, this is a process that will take some time.  But we're starting with the biggest lines.  We have already identified two trillion dollars in savings over the next decade.

 

In this budget, we will end education programs that don't work and end direct payments to large agribusinesses that don't need them.  We'll eliminate the no-bid contracts that have wasted billions in Iraq, and reform our defense budget so that we're not paying for Cold War-era weapons systems we don't use.  We will root out the waste, fraud, and abuse in our Medicare program that doesn't make our seniors any healthier, and we will restore a sense of fairness and balance to our tax code by finally ending the tax breaks for corporations that ship our jobs overseas. 

 

In order to save our children from a future of debt, we will also end the tax breaks for the wealthiest 2% of Americans.  But let me perfectly clear, because I know you'll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people:  if your family earns less than $250,000 a year, you will not see your taxes increased a single dime.  I repeat: not one single dime.  In fact, the recovery plan provides a tax cut - that's right, a tax cut - for 95% of working families.  And these checks are on the way.    

 

To preserve our long-term fiscal health, we must also address the growing costs in Medicare and Social Security.  Comprehensive health care reform is the best way to strengthen Medicare for years to come.  And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans.

 

Finally, because we're also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget.  That is why this budget looks ahead ten years and accounts for spending that was left out under the old rules - and for the first time, that includes the full cost of fighting in Iraq and Afghanistan.  For seven years, we have been a nation at war.  No longer will we hide its price.

 

We are now carefully reviewing our policies in both wars, and I will soon announce a way forward in Iraq that leaves Iraq to its people and responsibly ends this war. 

 

And with our friends and allies, we will forge a new and comprehensive strategy for Afghanistan and Pakistan to defeat al Qaeda and combat extremism.  Because I will not allow terrorists to plot against the American people from safe havens half a world away. 

 

As we meet here tonight, our men and women in uniform stand watch abroad and more are readying to deploy. To each and every one of them, and to the families who bear the quiet burden of their absence, Americans are united in sending one message: we honor your service, we are inspired by your sacrifice, and you have our unyielding support.  To relieve the strain on our forces, my budget increases the number of our soldiers and Marines. And to keep our sacred trust with those who serve, we will raise their pay, and give our veterans the expanded health care and benefits that they have earned. 

 

To overcome extremism, we must also be vigilant in upholding the values our troops defend - because there is no force in the world more powerful than the example of America. That is why I have ordered the closing of the detention center at Guantanamo Bay, and will seek swift and certain justice for captured terrorists - because living our values doesn't make us weaker, it makes us safer and it makes us stronger.  And that is why I can stand here tonight and say without exception or equivocation that the United States of America does not torture.

 

In words and deeds, we are showing the world that a new era of engagement has begun.  For we know that America cannot meet the threats of this century alone, but the world cannot meet them without America.  We cannot shun the negotiating table, nor ignore the foes or forces that could do us harm.  We are instead called to move forward with the sense of confidence and candor that serious times demand.

 

To seek progress toward a secure and lasting peace between Israel and her neighbors, we have appointed an envoy to sustain our effort.  To meet the challenges of the 21^st century - from terrorism to nuclear proliferation; from pandemic disease to cyber threats to crushing poverty - we will strengthen old alliances, forge new ones, and use all elements of our national power. 

 

And to respond to an economic crisis that is global in scope, we are working with the nations of the G-20 to restore confidence in our financial system, avoid the possibility of escalating protectionism, and spur demand for American goods in markets across the globe.  For the world depends on us to have a strong economy, just as our economy depends on the strength of the world's. 

 

As we stand at this crossroads of history, the eyes of all people in all nations are once again upon us - watching to see what we do with this moment; waiting for us to lead.     

 

Those of us gathered here tonight have been called to govern in extraordinary times.  It is a tremendous burden, but also a great privilege - one that has been entrusted to few generations of Americans.  For in our hands lies the ability to shape our world for good or for ill. 

 

I know that it is easy to lose sight of this truth - to become cynical and doubtful; consumed with the petty and the trivial. 

 

But in my life, I have also learned that hope is found in unlikely places; that inspiration often comes not from those with the most power or celebrity, but from the dreams and aspirations of Americans who are anything but ordinary. 

 

I think about Leonard Abess, the bank president from Miami who reportedly cashed out of his company, took a $60 million bonus, and gave it out to all 399 people who worked for him, plus another 72 who used to work for him.  He didn't tell anyone, but when the local newspaper found out, he simply said, ''I knew some of these people since I was 7 years old.  I didn't feel right getting the money myself."

 

I think about Greensburg, Kansas, a town that was completely destroyed by a tornado, but is being rebuilt by its residents as a global example of how clean energy can power an entire community - how it can bring jobs and businesses to a place where piles of bricks and rubble once lay.  "The tragedy was terrible," said one of the men who helped them rebuild.  "But the folks here know that it also provided an incredible opportunity."     

 

And I think about Ty'Sheoma Bethea, the young girl from that school I visited in Dillon, South Carolina - a place where the ceilings leak, the paint peels off the walls, and they have to stop teaching six times a day because the train barrels by their classroom.  She has been told that her school is hopeless, but the other day after class she went to the public library and typed up a letter to the people sitting in this room.  She even asked her principal for the money to buy a stamp.  The letter asks us for help, and says, "We are just students trying to become lawyers, doctors, congressmen like yourself and one day president, so we can make a change to not just the state of South Carolina but also the world.  We are not quitters." 

 

We are not quitters. 

 

These words and these stories tell us something about the spirit of the people who sent us here.  They tell us that even in the most trying times, amid the most difficult circumstances, there is a generosity, a resilience, a decency, and a determination that perseveres; a willingness to take responsibility for our future and for posterity.

 

Their resolve must be our inspiration.  Their concerns must be our cause.  And we must show them and all our people that we are equal to the task before us. 

 

I know that we haven't agreed on every issue thus far, and there are surely times in the future when we will part ways.  But I also know that every American who is sitting here tonight loves this country and wants it to succeed.  That must be the starting point for every debate we have in the coming months, and where we return after those debates are done.  That is the foundation on which the American people expect us to build common ground.

 

And if we do - if we come together and lift this nation from the depths of this crisis; if we put our people back to work and restart the engine of our prosperity; if we confront without fear the challenges of our time and summon that enduring spirit of an America that does not quit, then someday years from now our children can tell their children that this was the time when we performed, in the words that are carved into this very chamber, "something worthy to be remembered."  Thank you, God Bless you, and may God Bless the United States of America.

1.  WH spox Gibbs on Rick Santelli:  "I also think that its tremendously important that for people who rant on cable television - to be responsible and understand what it is they're talking about. I feel assured that Mr. Santelli doesn't know what he's talking about."   ......  Shares of Bank of America and Citigroup fell on "nationalization" fears, says the press. .... ..... But actually, they fell b/c Wall Street things they're insolvent. ... Sens. Schumer and Dodd endorse short-term, Swedenequse-nationalization of some banks...A good analysis is here......Citi employees joke about retiring with "government" benefits .... Transportation Sec. Ray LaHood floats a vehicle mileage tax in advance of commission recommendation.....House Republicans prepare alternative mortgage assistance plan....  would Obama veto a new CR if it had too many earmarks?

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Liberals are OUTRAGED that Rush Limbaugh seemed to liken Democrats to murderers, rapists, and "this Muslim guy" that "offed his wife's head"...

CNBC Rick Santelli is OUTRAGED that his taxpayer money is subsidizing his neighbors' mortgages.

New York Post reporters are OUTRAGED that their cartoonist compared Barack Obama to a chimp.

John Gibson is OUTRAGED that Huffington Post thought he compared Eric Holder to a monkey's bright blue scrotum.

And the New York Post is OUTRAGED that liberals interpreted the cartoon as being racist.

Europe is OUTRAGED that General Motors is cutting jobs on the continent.

Michelle Malkin is OUTRAGED that no one is paying attention to her OUTRAGE.

Republican activists continue to be OUTRAGED at the idea that Democrats will bring back the "Fairness Doctrine."

Jonas Brother Nick thinks his fans are OUTRAGEOUS in a good way.

Some folks are OUTRAGED that the House Oversight Committee refuses to hold hearings on pro wrestling and baseball's steroid problems.

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Today, the Atlantic's growing empire welcomes Chris Good, formerly of The Hill, to our site.  Chris will be a reporter and web producer, contributing to our standing and regular features, and serving as the all around website wrangler for us as the Politics Channel expands. Good helped bring The Hill into the digital dimension, running its Congress blog, Briefing Room blog and HillTube video feature. He's a 2005 graduate of Duke, and he plays the blues harmonica.

I was reminded of how President Barack Obama is changing our culture when reading a pool report yesterday on First Lady Michelle Obama's hosting of 180 students from D.C. elementary schools at the White House. The White House's chief usher reminded the children -- most of them black -- that the nation's executive mansion was built by slaves. That's something he couldn't have said, wouldn't have said, and would have made headlines if he'd uttered the phrase if the president were white and the first lady wasn't a direct descendant of those slaves Amid the economic crisis and the daily scrum, one can quite easily lose sight of the importance of this juxtaposition. And then there's this: a serious, light-hearted effort to change urban linguistics....instead of using the N word, use "president."  Even if it's a satire or parody, it works. (Update: it _is_ a parody.)  And still... it's provocative.

1. In one of my Six Clicks yesterday, I refered to Joe Klein as "Joel Klein."

2. Twice I referred to Illinois Gov. Pat Quinn as "she." Mr. Quinn is unambigiously a male.

3. I repeatedly (and even in an earlier version of this post) misspelled the name of RNC chairman candidate Chip Saltsman. 

4. In an early version of a post, I said that it remained uncertain whether Justice Ginsburg's cancer was malignant; all cancers are malignant. As the son of an oncologist, I should know this.

I apologize for all these errors; I take them seriously, because they make me look stupid. That said, there will be more, and I ask for your forbearance in advance.

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The National Republican Campaign Committee is hitting 30 Demcorats with radio ads blasting their support for the stimulus package, a spokesman said.  Listen to an example of the ad here.  The ads say that these Dems "voted for a wasteful, porkbarreled spending program," and include the Litany -- STDs, smoking cessations, NEA funding.  The ad buys aren't large, but they're the first major effort by the right-of-center crowd to hold Democrats accountable. According to the NRCC, the ads target:   John Barrow (GA-12); Bruce Braley (IA-01); Chris Carney (PA-10); Travis Childers (MS-01); Kathy Dahlkemper (PA-03); Steve Driehaus (OH-01); Chet Edwards (TX-17); Bart Gordon (TN-06); Alan Grayson (FL-08); John Hall (NY-19); Steve Kagen (WI-08); Mary Jo Kilroy (OH-15); Larry Kissell (NC-08); Suzanne Kosmas (FL-24); Dan Maffei (NY-25); Betsy Markey (CO-04); Eric Massa (NY-29); Jerry McNerney (CA-11); Charlie Melancon (LA-03); Dennis Moore (KS-03); Glenn Nye (VA-02); John Salazar (CO-03); Mark Schauer (MI-07); Kurt Schrader (OR-05); Carol Shea-Porter (NH-01); Ike Skelton (MO-04); Zack Space (OH-18); Harry Teague (NM-02); Dina Titus (NV-03) and Tim Walz (MN-01).

His argument:

John McCain probably was eager to return to the Senate as an avatar of bipartisanship, a role he has enjoyed. It is, therefore, a measure of the recklessness of House Democrats that they caused the stimulus debate to revolve around a bill that McCain dismisses as "generational theft."

P1: John McCain enjoyed being bipartisan in the past.

P2: [All people who enjoy things in the past will want to continue doing them in the future.]

C1: Therefore John McCain wanted to continue being bipartisan.

P3: John McCain did not continue being bipartisan.

P4: [Only recklessness by House Democrats could cause John McCain not to be bipartisan.]

C2: Therefore House Democrats are reckless.

Sens. Specter, Leahy, Feingold, Whitehouse and Kennedy unveiled the 2009 version of their State Secrets Protection Act today. Its aim is to provide guidance to federal courts currently considering cases involving the ever-so-controversial State Secrets Privilege.  The legislation codifies best practices that some courts use but others don't, like the appointment of special masters to independently evaluate intelligence information.  The government would be required to disclose the evidence behind its particular privilege claims to judges, and not merely assert that such evidence exist.  Also, judges wouldn't be able to dismiss the case solely because the privilege has been asserted; the pleadings stage must have been underway, along with document discovery. (Note: judges can still dismiss the case solely based on the privilege claim, but he or she must vet the information in a legal proceeding beforehand, and must allow the defense to make a counterlcaim.) The legislation would establish new safeguards for protecting classified information and provide a way for judges to report on the cases to Congress.

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Of all the responses to the administration's endorsement of the state secrets privilege in Mohamed et. al. v. Jeppesen, one question pops out: why, if the administration were simply overwhelmed with information, didn't they just ask the court of appeals to give them some more time? Even if denied, it would signal their intention to review the government's strategy and the facts of the case. Wouldn't it be a costless legal move? 

It's a valid question. Read on.

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I want to be candid:  this comprehensive strategy will cost money, involve risk, and take time. We will have to adapt it as conditions change.  We will have to try things we've never tried before.  We will make mistakes.  We will go through periods in which things get worse and progress is uneven or interrupted.

In our financial system, 40 percent of consumer lending has historically been available because people buy loans, put them together and sell them.  Because this vital source of lending has frozen up, no plan will be successful unless it helps restart securitization markets for sound loans made to consumers and businesses - large and small.

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Is President Barack Obama lagging behind the curve when it comes to sending nominations to the Senate for confirmation?  To the contrary: he's breaking it.  Data compiled by a smart contact from public data shows that 41 official nominations were been submitted in January, the most ever for a recent president. President Reagan, in January of 1981, managed to nominate 27 people officially. The second President Bush -- merely 17. The pace of nominations tends to drop in February because Congress is consumed by budget fights; it picks up rapidly in March and April.

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Jeppesen DataPlan, an entity known to anyone familiar with aviation, helped the U.S. government plan flights and logistics for its extraordinary rendition program in the earlier part of this decade. A lawsuit brough by five men who say they were unlawfully rendered to torturing countries was dismissed by a judge who agreed with the Bush Administration's claim of a state secrets privilege. Civil rights activists had hoped that the Obama Administration would somehow change its mind at appeal, and argue the case on its merits in open court. That's not going to happen. Today, the Justice Department -- the Eric Holder / Obama Justice Department -- re-asserted the state secrets privilege in Mohamed et al. v. Jeppesen. This may be disappointing to civil libertarians, but it shouldn't be surprising.

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Few supporters are answering President Barack Obama's call for nationwide house-party gatherings this weekend to build grass-roots support for his economic stimulus plan.

A McClatchy survey of sign-up rosters for a score of cities across the country revealed only 34 committed attendees in Tacoma, Wash., as of midafternoon Friday; in Fort Worth, Texas, only 54, and in Sacramento, Calif., just 78.

"Before the election, we would have had 500 to 800," said Kim Mack, 46, a Sacramento city-facility manager who's hosted house parties for political figures and causes since the mid-'90s.

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Politics and policy collide: in August of 2007, the Bush Administration's Medicare and Medicaid overseers limited the flexibility of states to set income eligibility requirements for S-CHIP, the major federal/state health insurance program for children. Democrats claimed that the requirements were particularly punitive to certain states and would cut tens of thousands of children off the rolls, children for whom SCHIP was the most efficient source of insurance.

In some ways, the agency directive was an attempt to short-circuit the S-CHIP reauthorization debate because it forced states that wanted to increase coverage to children in families earning more than 250% of the poverty line to cover 95% of those living below 200% of the poverty line; beyond that, states had to record a decline in the coverage rate of employer-sponsored insurance.  Those goals were next to impossible to meet. That was the point.

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The environmental lobby has many fires to put out and a few days worth of water left. Sen. John Barrasso (R-WY) opposes the stimulus package, but he wants to try and make it easier for federal agencies to build things more quickly. To do that, he's proposed an amendment to exempt certain stimulus-related projects from the mandatory National Environmetal Protection Act review. Sen. Barbara Boxer's amendment would require every stimulus-related project to complete NEPA review.  Barrasso wants those projects whose reviews are taking longer than 270 days to be considered exempt or cleared; Boxer wants all projects being given stimulus money to get the benefit of a full environmental review.

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The wires report that Justice Ruth Bader Ginsburg is having surgery for pancreatic cancer; pancreatic growths are are almost always malignant, and pancreatic cancer has among the lowest survival rates of the many varieties of the disease. Surprisingly, the good news is that surgeons usually tend to operate on the pancreas when the cancer hasn't spread, so Ginsberg may well have a better than average prognosis.

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The Senate will vote on this surprisingly contentious issue tonight, after a day of vocal lobbying from corporations and other countries. Sens. Byron Dorgan and Max Baucus have an amendment to make the "Buy American" provisions consistent with international trade obligations.  That's in line with what the White House has requested.  It's not clear what the language will require; either companies would be required to use American-made steel, iron and other commodities in projects, or they won't.

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More than just another politics blog, Atlantic Politics features content from Atlantic contributors along with reader comments, best-of-the-web picks, a fresh design, photography, a daily barometer measuring the nation's top political and financial indicators, and more. Curated by Marc Ambinder, the Atlantic's award-winning political reporter, the Politics Channel aims to deliver both original reporting and "breaking analysis" to put the political news of the day in context.

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Gov. John Lynch (D-NH) indicated today he'll appoint a Republican to replace Sen. Judd Gregg if Obama nominates the New Hampshire senator to be Secretary of Commerce. In a statement, Lynch said that Gregg made it clear that he would not resign the seat if it would tip the balance in the Senate, and that Lynch believes that the president ought to have the advisers he wants.

"I have had conversations with Senator Gregg, the White House and U.S. Senate leadership. Senator Gregg has said he would not resign his seat in the U.S. Senate if it changed the balance in the Senate. Based on my discussions, it is clear the White House and Senate leadership understand this as well," Lynch said.

"If President Obama does nominate Senator Gregg to serve as Commerce Secretary, I will name a replacement who will put the people of New Hampshire first and represent New Hampshire effectively in the U.S. Senate," he said. Full statement after the jump

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Dear Chairman Baucus and Senator Grassley:

Thank you for the work you and the Committee are doing to move forward on my nomination by President Obama to be Secretary of Health and Human Services. I know that despite the heavy workload from both the Economic Recovery Act and SCHIP, as well as all the nominees the Committee is handling, your staff has worked diligently on my nomination. I also appreciate the strong commitment to fairness you both have expressed.

As you can well imagine, I am deeply embarrassed and disappointed by the errors that required me to amend my tax returns. I apologize for the errors and profoundly regret that you have had to devote time to them. I will be happy to answer any Committee members' questions about these issues. In the meantime, as a follow-up to our conversations, I would like to briefly review three issues discussed at my meeting with your staff and mentioned in our meeting on Thursday.

Last fall, when I was being considered for this position, the Presidential Transition Team's vetters reviewed my records. During the course of those reviews, the vetting team flagged charitable contributions they felt were deducted in error. When my accountant realized I would need to file amended returns, he suggested addressing another matter I had raised with him earlier in the year: whether the use of a car service offered to me by a close friend might be a tax issue.

In December, my accountant advised me that it should be reported as imputed income in the amended returns. At about the same time, the friend's company, a consulting client, informed my accountant of a clerical error it had made on the Form 1099 it provided to me and reported to the IRS for 2007. In an effort to ensure full compliance and the most complete disclosure possible of my personal finances, we remedied these issues by filing amended tax returns with full payments, including interest.

We provided all this information to the Committee in addition to the completed Committee questionnaire and my responses to your staff's questions. I disclosed this information to the Committee voluntarily, and paid the taxes and any interest owed promptly.

My mistakes were unintentional. I am available to answer any further questions you might have and look forward to coming before the Committee in the very near future to discuss the critical health and human services issues facing our country. Should I be approved by your Committee and confirmed by the Senate, I look forward to working in partnership with you both to pass meaningful legislation that will help Americans get the health reform they need and deserve and to ensure that all HHS programs and activities reflect a commitment to responding to the needs of our citizens in a manner that is compassionate, cost-effective, and transparent.