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  • Morning Bell: The Obama PAYGO Farce

    Did you ever know anyone that would repeatedly go out to the bar, drink themselves unconscious, and then wake up the next morning and promise never to drink again? That is President Barack Obama when it comes to spending. This February, after signing the largest single-year increase in domestic federal spending since World War II, President Obama held a “fiscal responsibility” summit designed to “send a signal that we are serious” at putting the nation on sounder financial footing. The Washington Post’s Dana Milbank quipped at the time: “Holding a ‘fiscal responsibility summit’ at the White House in the middle of a government spending spree is a bit like having an Alcoholics Anonymous meeting at a frat house on homecoming weekend.”

    Obama completed the exact same kabuki act yesterday, calling on Congress to pass “pay-as-you-go” legislation (PAYGO) the day after he promised faster deficit spending to stimulate the economy. Commenting on President Obama’s exemption for entitlement spending in his PAYGO legislation, Committee for a Responsible Federal Budget President Maya MacGuineas said: “This is like quitting drinking, but making an exception for beer and hard liquor.”

    In theory, PAYGO sounds like common sense: Congress can only spend a dollar if it saves a dollar elsewhere. In reality, PAYGO is nothing more than a political gimmick that only enables higher spending and exploding deficits. Heritage fellow Brian Riedl explains:

    1) PAYGO has never been enforced

    • During the 1991-2002 round of statutory PAYGO, Congress and the President still added more than $700 billion to the budget deficit and simply cancelled every single sequestration that would have enforced PAYGO.
    • Since the 2007 creation of the PAYGO rule, Congress has waived it numerous times in order to add $600 billion to the deficit. In fact, the entire “stimulus” bill violated PAYGO; Congress simply ignored the rule.

    2) PAYGO’s design is flawed

    • PAYGO exempts all discretionary spending, and would also allow all current entitlement programs like Social Security, Medicare, and Medicaid to continue growing on autopilot. It affects only new entitlements or tax cuts that may be created in the future.
    • Even if PAYGO were fully enforced, entitlement spending would still grow 6 percent annually, and discretionary spending could grow without limit.

    Already this year Obama expanded Medicaid liabilities by $200 billion over 10 years, and he is now pushing a public health insurance option that would cost $452 billion per year, or more than $6 trillion over a 10-year period. How does Obama plan to pay for all this new spending under his new PAYGO legislation? He doesn’t. The AP reports: “It would carve out about $2.5 trillion worth of exemptions for Obama’s priorities over the next decade. His health care reform plan also would get a green light to run big deficits in its early years.” So if President Obama does get his trillion dollar health care plan passed, you can count on another “fiscal responsibility summit” soon thereafter.

    Quick Hits:

    • In an unsigned opinion last night, the Supreme Court acquiesced to Obama administration claims that car companies are also financial institutions and refused to grant a stay to Chrysler’s Chapter 11 sale to Fiat.
    • Rep. Barney Frank (D-MA) defended his intervention on behalf of a General Motors center in his district, claiming his example will not lead other lawmakers to do the same thing.
    • In the Washington Post, Brookings Institution senior fellow Michael O’Hanlon says the Obama administration’s defense budget is “insufficient to support the national security establishment over the next five years.”
    • Senate Judiciary Committee chair Patrick Leahy (D-VT) unilaterally set Sonia Sotomayor’s Supreme Court confirmation hearing for July 13 yesterday.
    • A new study shows that trains emit more greenhouse gas over their full life-cycle than airplanes do.
    Posted in Ongoing Priorities [slideshow_deploy]

    46 Responses to Morning Bell: The Obama PAYGO Farce

    1. MAS1916 - Denver, CO says:

      Perhaps we should let the lefties try this and see what they would actually cut. Chances are that Democrats would adopt the California standard of just raise taxes everywhere possible until the economic house of cards collapses.

    2. ron hansing says:

      Well, lets see, a new job opening for the now 17th Czar position has opened up. The paygo czar… What a great job,collect a salary and do nothing. Where do I apply???

      ron hansing

      I am reminded of a chorus we had in the 60's, "Insane acts of a dying class." Originated by the Big Muddy Gazette, and dirty old George, carbondale, Ill.

    3. Steve, Florida says:

      Is there no shame in Obama? no honesty? no respect for the American People, our intelligence, sensibility, respect for open debate and traditions? I am simply blown away by the shameful display of disingenuous politics by our representative government. The 'spin' is out of control and even our enemies and allies know it. Hey, Michelle; I have never been less proud of being a citizen of the U.S. than I am now.

    4. Richard Cancemi, Arl says:

      Liberal/Socialism is a cancer that has killed many a country. It has now spread and invaded the "body" of the USA and is growing rapidly.

      This tumor is an OBAMANOMA,a particularly malignant and virulent form rapidly invading every system of America.

      It will destroy the USA if not treated. We do have a prescription. It's called IMPEACHMENT! It will take courage to call for it.

    5. catherine deanni Kea says:

      All this is about is a way of getting rid of programs that benefits American citizens and replace them with programs that help the people who are backing the Democrats. illegals, acorn, aclu and they can control these programs.

    6. Sharon DuVall says:

      I would like to know why the Supreme Court Judges(that are to uphold our Constitution) don't call for a meeting or hearing or whatever it takes to protect this nation from President and the Senates corruption of violating the Constitution by meddling in private businesses and all they are doing. Our constitution is to protect the people and we are not being protected by allowing Washington to destroy our nation. We the People must appeal to the USA Supreme Court and get them off their duff and protect this country. We the people are not keeping them accountable and they are not keeping the President and Congress accountable. The only duty they have is to uphold the Constitution. They have no power but a duty the power is in the Almighty God and the Constitution.

    7. Ken Jarvis - Las Veg says:

      Paygo MUST be a Good idea

      if the HF is against it.

      WHY does the HF, GoP, and Rush

      Want Obama to Fail.

      If Obama Fails, America fails.

      Is THAT what they want?

    8. Whicket Williams Kin says:

      Am I the only person who is connecting the dots? The chinese made nancy promise pay-as you -go just a few days ago That is what this is all about. Nancy does not understand that the chinese are serious, and if you pull this double talk crap on them they will nuke you.

    9. michael hutchings says:

      I SEEM TO REMEMBER PAYGO FROM SOME YEARS BACK AND IT WAS COUPLED WITH WHAT WAS CALLED DEMOCRATIC ECONOMICS BY RICHARD GEPHARDT WITHA STRAIGHT FACE.

      THE PAYGO RULE IS ANOTHER STRAW DUMMY MADE BY A DECIETFUL CONGRESS THAT TAKES TURNS PULLING ITS STRINGS TO GIVE IT A SEMBALANCE OF ANIMATION WHEN THEY NEED A PROP FOR THE NEXT PERFORMANCE.

      THE PAYGO RULE IS CATERD TOO WITH A STRAIGHT FACE WHEN OTHER DEVICES OF EXTORTION BECOME STALE AND THE NEXT DESPARATE CRISIS NEEDS COVER.

      WHICH PROVES THERE ARE NO LIMITS TO A GOOD FOCUS GROUP POINT AND NO END OF HYPOCRITES TO BREATH LIFE INTO THE LARGEST SWINDLE IN AMERICAN HISTORY.

    10. Whicket Williams Kin says:

      Never pay any attention to what any politicain says, except to count the lies. instead, pay close attention to what they do. " never vote For any incumbent, regardless of party" They are all the same, and if one is holding office they are guilty. Not one of those #$%^ are standing up for anybody but themselves. If we cannot get impeachment proceedings going, we must depend on the 2010 elections to stop this insanity. We cannot even get the conformation hearing for that raciest slowed down a little, much less denied.

    11. Whicket Williams Kin says:

      If everybody will vote Against evey incumbent, it will not matter who wins, they will be better this this bunch!!!

    12. Bob Elder, Saint Jam says:

      Entitlement programs need to be separated into two categories. Most Social Security and Medicare recipients have earned their benefits as a result of years of service and contributions. A few find their way into these programs without contributing and this is a dilution of the programs. Welfare and the new Obama Uninsured Children’s Health Care become burdens on the working base of America for the support of those who do not contribute.

    13. Ben C, Ann Arbor, MI says:

      Smoke and mirrors = Obama transparency.

    14. David Sayers, NC says:

      Pay as you go should be changed to He Has To Go and soon. This outrageous moronic nonsense has to stop. All of these clowns,everybody from the White House to Congress to the hacks at the state run newspapers and TV,gotta go. BHO,who touted himself as the savior of the world has turned out to be just another marxist/socialist liar and fraud. He doesn't have a clue,is in way over his head and will only take us to complete ruin with his childish,and really stupid,ideas.Not even Clinton gave me chest pains like this guy does. I can't stand to see his face and ears or to hear him speak with the help of his teleprompter or saluting getting off the helicopter. We need serious people with serious ideas and real plans to set things right not pie in sky commie crap. Well comrades,thats my two cents for today. Oh, comrade Ken,when do they expect you to awake from your coma?

    15. Michael - New York N says:

      Ken Jarvis—Get real—–, Its not that anyone wants Obama to fail, its because Obama is already failing, look at the 10 yield bond curve, look at North Korea and our hostage situation, look at the shootings by Muslim terrorist in America, look at the national debt, the deficit, and the additional money he wants to spend but does not have, He already has a failed Presidency. Look at the Gitmo mess, ..

      Just about eveything he touches is a mess, including GM, Chrysler, the equity markets, the country will fail under his rein.

    16. Ozzy6900, CT says:

      First of all, I believe it was Nancy Pelosi who promised to use PAYGO when she became Speaker of the House. Of course, that was another one of her lies.

      I think that President Obama had a Revelation the other night. A power to be named later must have informed him that he is spending way too much and will not be able to cover the tab. So, the anointed one reveals to America that he will only spend what he has available, ala PAYGO.

      The problem is President Obama has already gone way overboard in his spending but now there is “light at the end of the bank vault”! With PAYGO, if President Obama needs more money to fund some stupid notion of his, he either prints more or taxes the American Taxpayer for it!

      PAYGO – it’s the way to go………………….. broke!

    17. jim smith new york says:

      PAYGO/SHMAYGO, it’s all the same Alinsky Playbook rhetoric. Say yes when you mean maybe and no when you don’t know and probably when you mean eventually and unlikely when you mean absolutely.
      Remember, Who’s on first, unless he isn’t. Even though you’ve seen it with your own eyes, it isn’t necessarily visible, unless, of course, it is. So happy to finally clear that up.

    18. Ron, Derry NH says:

      Debt creates need, need sustains power!

      They don’t care.
      How does a thug come to power?

      First you create a situation where you are needed, basically with threat and fear.

      How do you achieve that psoition; hide the tools and methods of self preservation (Dummy down)

      How do you increase that power base?
      Coercion with willing partners and an increase in need; Debt increasing partnerships.(enforcers)

      How do you remove threats to your power?
      destroy independent competition and limit resources and markets.

      This is not your fathers America!
      Welcome to Marxism.

    19. E Paul Lian, Scottsdale, AZ says:

      You guys are GREAT! Your comments on Pay-Go today are funny, well written…and scary. What are we mere mortals to do? This past weekend is as good of an answer as I can provide. One of my old college roommates came down from Las Vegas to get caught up on these past forty years. We talked, reminisced, laughed, ate a little, drank a little, laughed some more and cheered for Arizona State in the Super Regionals against Clemson. He and his significant other are traveling the United States, picking up a couple nice properties as they go and are enjoying life to it’s fullest. He’s cashing in several lucrative stock options and laments the redistribution of wealth concept that might impact his future.

      The lesson in all of this? Don’t give up people, keep enjoying life, don’t let our elected officials ruin the party. If the Feds implement Pay-Go…let’em do it, let them feel important, let them think they actually play a role…the joke is on them.

    20. Helmetfoot Boston, says:

      I ALSO THOUGHT THAT THE COURT WAS TO PROTECT THE AMERICAN PEOPLE FROM A GOVERNMENT GONE WILD. SOMEONE TOLD ME THAT YOU MUST HAVE "STANDING" WITH THE COURT SO IT WILL ACT. LORD KNOWS AS A CITIZEN I HAVE NO STANDING WITH THIS ADMINISTRATION. WITH OBAMA AT THE HELM, CITIZENS ARE LOWER THAN WHALE DUNG WHICH IS AT THE BOTTOM OF THE OCEAN.

      OBAMA SAYS, "LET THEM EAT CAKE!" jEFFERSON SAYS, "A LITTLE REVOLUTION NOW AND THEN IS NOT A BAD THING." tHERE MUST BE SOME WAY TO REVOLT WITHOUT HAVING TO TAKE UP ARMS. HOW CAN THIS MADNESS BE STOPPED.

    21. Pingback: Obama’s PAYGO is Ludicrous Baloney - The Otherwise Minded

    22. Michael - New York New York says:

      The only thing transparent about the Obama administration is its lack of transparency and truthfulness.

    23. Mike in Conyers, GA says:

      I read these comments daily and am still amazed that Ken Jarvis cannot find any fault with our "sacred" ruler. Anyway, My comment is more of a statement, We as intelligent, reasonable, capitalist citizens of the United States of America need to reach out to those unfortunate enough to believe that spending more on government based and backed initiatives will help our economy, and to its end, help them as individuals, to no longer worry about health care, paying a mortgage or buying food. In their world the government will provide all, and the way Obama preaches if I were not a thinking man, I might believe it too.

      So I pose this challenge to all who should read this, the only way to CHANGE this path we are on is to Replace the Socialist in charge, and the way to do that is to convert his followers at a grass roots level

    24. Christopher Popham S says:

      So, at long last, a few Americans (this blog) are

      beginning to see the LIGHT.

      Our sacred Constitution has been shredded, our

      wallets emptied, our global reputation in ruins,

      our 'friends' and enemies mocking us from abroad,

      and our Congress, (as for the past 30 years) continues to drive us down a very treacherous path. And so now as the domestic and global fiscal

      crises hit home—now you are angry and concerned????!!!

      It may be too late. It has been said that once a

      government grabs hold (nationalizes) the businesses, the banks, health care and ad infinitum, there will be no turning back.

      We can and must at this critical time in history, join forces as one family of 300 million Americans and show the world that we are indeed the greatest nation on earth.

    25. Mike McLellen, Grand says:

      Ken from Las Vegas – nice analysis, you may have heard but you obviously have not listened to what any of the people you cited have said. They want President Obama's plans to socialize segments of our economy and many of his illconceived, oversimplistic approaches to fail because they will cost this country dearly.

      We already see this in his confiscation of wealth from shareholders and bond holders and his redistribution of said wealth to the United Auto Workers. We listen to plans to implement government run health care and know they are doomed to fail because we already have government run health care (Medicare/medicade and the VA Hospitals).

      We won't have to wait long to see how Obama's policies either succeed or fail.

      Success would disprove our longheld theories of capitalism, individual responsiblity, survival of the fittest and financial gain providing the drive for people to succeed.

      The one thing conservatives have Ken, that you don't, is several models of the type of world President Obama is seeking, where wealth distribution and social engineering are the norm, all of which have failed.

    26. Pingback: Rush - What Does Obama And God Have In Common?

    27. Mike, Hickory, NC says:

      Somehow Obama's PAYGO farce reminds of a televised interview of Obama during which he was in essence asked when he expects us to run out of money. Obama's answer (Quote, verbatim): "We're already out of money".

      Now, in addition to the Obama gang (Obama, Reid, Pelosi, et al) burying both current and subsequent generations under robbing and subjugating massive, unprecedented spending, debt, and regulation, and unethical and Unconstitutional ruling, taking ever more government elitist and statist control of our lives and everything else, AND printing money as if it's "toilet paper", as if that will "help pay” for all such antics and machinations, Obama insults our intelligence with his blatantly empty and poll-driven "pay as we go" line!

      "Pay as we go"!? With what, Obama?? You've already said “We’re already out of money”! Not to mention doing all of the above, all to the point where you and your gang are driving even your leading buyers of U.S. debt, etc, the Communist Chinese, to telling you it won't work and that they won't keep invariably buying such U.S. debt, etc!

      So again, "pay as we go"!? With what, Obama??? To quote even you again, "We're already out of money"!

      Not only that, but what's that definition of insanity? "Continuing to do the same thing, or more of it, and expecting different results"!

      Of course for such insanity, and the subversion and destruction of our freedoms, resources, and security by it, we can thank those who voted for "change" into far more of it by voting Obama into the White House and his Comrades into Congress and elsewhere.

      Of course the bottom line is the only way to really stop Obama and his Comrades is for us to use our rights to "recall" them out of office, and "vote" them out of office, where and while we still have those rights (including the right to vote by secret ballot instead of "card check"), and both Obama and his Comrades know it!

      That is exactly why Obama and his gang are so determined and in such a hurry to break even their own promises and rules (such as when they "rammed through" the so-called "stimulus [Porkulus] bill" and the so-called "Omnibus [Earmarkulus] bill" before they, and we, the people, could read them), to grab and entrench as much power and spending, and so take as much of our freedoms and resources away from us as they can, before the elections of 2010 and 2012!

    28. Pingback: » Financial News Update - 06/10/09 NoisyRoom.net: “Extremism in the defense of liberty is no vice. Moderation in the face of tyranny is no virtue.” Barry Goldwater

    29. tom coal valley says:

      AFTER READING ALL THESE COMMENTS I CAN SEE THERE IS A LOT OF ANGER ABOUT the way THIS CONGRESS AND THEIR PUPPET PRESIDENT. wELL ARE WE GOING TO JUST SIT AROUND AND WHINE ABOUT IT OR ARE WE GOING STEP UP AND START A GRASS ROOTS SOLUTION TO IT. as I have said before we need leadership from the republican party to step up and tell the politically correct one it doesn't work anymore. If the annointed one hates this country for which it stands he can go back to his fathers land and I will gladly pay his one way fare. This country is and will be a capitalist society and all immigrants are welcome to come here keep their culture and understand this is our country you wanted to come here if you don't like it you are welcome to leave. To our conservative leaders [Republican] time to stand up for something or fall for everything. Gee I hope I didn't hurt anyone feelings.

    30. Wayne, La. says:

      Once the dam of free money flows it is difficult to turn it off.

      It takes time for any industry to adjust to changes of direction. If the idea of this government take over is to increase production of energy efficient vehicles then this could take many years. Ideas need to become reality and the cars need to revive consumer confidence. Government intervention only lessons consumer confidence. So there goes the money…

    31. mactx says:

      PAY As you go dam i thought i was paying alla long.i think the new car sent will wear off pretty soon. I THINK THEY ARE SO AFARID OF PAYLIN THEY DON'T KNOW WHAT TO DO. I WILL PRAY FOR DAVID

      LETTERMAN EVERY NIGHT. I WILL PRAY HE FAILS. POLICTS HAVE REALY GONE BAD.WHEN SOMEONE SAYS A JUDGE HAS YOUR BACK,I DON'T KNOW ANYMORE.

      SOMEONE SAID THERE IS SO MUCH GOOD IN ALL OF US TO CRITIZE THE REST OF US.GIVE DETANIES RIGHTS

      IF SOMEONE FEELS THIS WAY THEN BRING OUR TROOPS HOME. GOD BLESS RIGHT NOW WE NEED GUIDANCE

    32. Barb -mn says:

      What the government is doing to society is like what an open bar would do for an alcoholic.

      Preventative medicine is limited government. Rid the enablers.

    33. Pingback: E!! The True Conservative Story » Blog Archive » Brian Reidl: PAYGO Has Never Been Enforced

    34. REV. RANDY WRIGHT says:

      PAYGO or "LOCO"???

      We officially have a pathalogical liar as a president! Is he going to skate thru 4 years

      of wrecking our country w/o any accountability?

      The only difference in this "Chicago Mobster" and

      some of the others is…he doesn't carry a machine gun around with him. He is crooked.

      It's like a foreigner that wants to ruin America

      is running this country. God help America.

    35. Pingback: Brian Reidl: PAYGO Has Never Been Enforced - RENEWtv: Renewing America. Renewing the GOP.

    36. Dennis A. Social Cir says:

      He talks a good story, and the American people eat it like candy. Jimmy Carter also talked a good story line, interest went to %16 on homes, inflation was at record highs. We are on the same road, only worse, all the deficit spending and proposed spending will have to be paid at some point in time. Yea, he is creating jobs, these jobs are by expanding the the "guvernment" role in our lives. These new hires all belong to a union, so replacing them is next to impossible. Way to go dems, we are going to be broke and owned by other country's, not mention the fact that our CONSTITUTION is being thrown out the door. The rights that so many have fought and died for and are still doing so, are being ignored because obama and the so called "elected" ones are willing to let this happen. Oh well, the "CHOSEN ONE" has spoken and it must be the best thing for all of us.

    37. Pingback: Morning Conservative Reading List - June 11, 2009 - AIP Blog - American Issues Project

    38. Sue Tipping says:

      Picture it: A 62 year old female who has worked over 40 years, raised two kids, never been on Welfare, government subsidies, paid her taxes, saved money and is "presided over" by a President who has the appearance of not knowing what in the heck he is doing. I tell you it's embarrassing to this great nation.

    39. Andy Sulskis, Keshen says:

      PAYGO I think is the name of a check cashing company that will let you write a check, but not cash it for a month. For the privilege you are charged 45% annual interest.

      I also know of BOGO. Buy one Get one free. I think that's what congress expects.

      Best idea is to pass a law that 8 years from now those guys have to pay for it.

    40. Pingback: PAYGO = The stage is being set for a deluge of tax increases. « WA4ZKO on Ham Radio, IT, and Politics

    41. Pingback: PAYGO: A No Go for Conservatives? - AIP Blog - American Issues Project

    42. ppock seattle,wa. says:

      I feel like I've been put in a straight jacket, placed in a remote State Hospital and am being forced fed LSD with my eyelids superglued open. All the while being forced to listen to repeated chants of Obama…Obama….Obama………..

    43. Askie,Florida says:

      For the millions upon millions who couldn't stand G.W.and his administration and who saw Obama,the audacious one,as their only hope and savior,to them I say ''enjoy the ride''.Only problem is folks like me who saw Obama for who he is (an egotistical neophyte)aren't a bit too happy as to what is taking place.But all things do have an ending and in 2012,if the country survies,Mr.Know-

      All will be sent to pasture.What a laughing stock this once mighty nation has become. It's unreal!!

    44. Pingback: Bear Creek Ledger » “The Democrat definition of PAYGO is you pay, they go on spending.”

    45. Pingback: Obama seeks power to grab whole economy - INGunOwners

    46. Louis, Chicago says:

      You people are idiots. So you're against reducing the deficit? Get a life jackasses.

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