Date: 2/14/2009
By NANCY BENAC and CALVIN WOODWARD
Associated Press Writers
WASHINGTON (AP) — America is bringing shock and awe to the home front, using dollars instead of bombs.
It’s the military doctrine of lightning force — fast and brute, or as brute as the shaken country can manage — applied to the campaign for economic recovery.
With a record-busting stimulus plan, the U.S. is marshaling resources against economic catastrophe in ways not seen since Franklin Roosevelt put the New Deal in motion.
President Barack Obama is going with the best deal he could get. The stimulus bill is a landmark legislative achievement for a new president who inherited economic spoilage along with the spoils of power. Now the nation anxiously waits to see if it works.
Undermining federal balance sheets that were already deeply in the red, Obama and Congress settled on a nearly $800 billion plan that aims to spend more on the crisis at hand than the government has spent waging the Iraq war for six years.
The idea: fast cash, and lots of it, but with a strategic view to the future.
Some dollars will flow quickly into wallets — and right out again.
The stimulus plan will mean thousands of dollars in tax breaks for first-time home buyers and people buying new cars. Lower- and middle-income taxpayers will get an extra $13 a week in their paychecks this year, and about $8 a week next year. Unemployment checks will go up $25 a week, and keep coming longer. Food stamp benefits for 30 million Americans will rise. Short-term health insurance will become more affordable for many losing their jobs.
The success of the stimulus package may be measured less by visible achievements than by what does not happen — the home that is not foreclosed, the family that doesn’t slip into poverty, the disease that does not go undiagnosed.
“The one thing we’ll never know is what would have happened if we didn’t do it,” said Nigel Gault, chief U.S. economist for IHS Global Insight.
It’s not FDR’s deal and these aren’t his times.
No federally subsidized artists will paint murals glorifying the muscle of American workers or the progress belching from smokestacks, as they did in Roosevelt’s day.
No grand compact is to be formed between generations like the one that promised everyone a federal pension. No institutions will rise to try something brand new.
“We’re not reinventing government,” said historian Kenneth C. Davis, author of the best-selling “Don’t Know Much About” series. “We’re modifying things that exist.”
Yet as the share of the economy taken up by federal spending rises to an anticipated 30 percent, the nation is grappling again with big questions about Washington’s place in people’s lives.
“The stakes are so high now, this is such a big bill, average Americans are following it,” says Princeton historian Julian Zelizer. “It’s become a bill that is an argument about what government can or can’t do.
“If there is no effect and in six months we are talking about the same economy or a worse economy, I think it would be a devastating blow to the president, Democrats, and to liberal claims about what government can do.”
To critics such as Senate Republican leader Mitch McConnell, the package is the “Europeanization of America.” Others call it “Rooseveltian” or “generational theft” in reference to the debt passed on to the future.
They might envision murals glorifying little more than filled potholes, insulated windows, depreciated computers.
Obama said it’s about more than that, and drew parallels with FDR in speaking Friday to the Business Council, formed by corporate leaders in the 1930s to advise Roosevelt’s administration.
“We adapted, we changed,” he said about those days — and these. “President Roosevelt understood the new role of government in this new world, that while extraordinary actions on its part might be the source of recovery, no action on the part of government, no matter how extraordinary, would alone be the source of our prosperity.”
In his radio address Saturday, Obama said he believed the country “will turn this crisis into opportunity and emerge from our painful present into a brighter future.”
Democrats and just enough Republicans in Congress — three — saw the package as the best chance to tamp down the economic wildfires breaking out across the landscape.
Obama came into office saying he wished to be judged on his first 1,000 days instead of the usual benchmark of 100. In some ways he will be judged on his first 10 or 20.
Not even Roosevelt, fast off the mark to deal with a bank crisis, was as fast as this in achieving something so sweeping, so early.
The enormity of the package left politicians grasping for concrete ways to convey its size.
Sen. John Thune, R-S.D., spoke of a stack of hundred-dollar bills 689 miles high, and of bills wrapped side-by-side that would encircle the Earth nearly 39 times. House Republicans predicted that the package’s costs — with interest on the necessary borrowing — could total more than a trillion dollars, enough money to buy about 1,000 boxes of Girl Scout cookies for every American.
It was enough to prompt comic Jon Stewart to riff that if you sewed the $100 bills together, “you would make a blanket for Jupiter.”
The stimulus wasn’t just about throwing cash at the economy, though.
The package is filled with billions for some of the same goals that Obama preached about on the presidential campaign trail — renewable energy and green jobs, computerized medical records, broadband Internet service for underserved areas.
“There are seeds in this bill for long-term change,” says Zelizer. “There are things that can develop out of the research that can change our lives.”
Obama sounded a drumbeat of warnings about the consequences of failing to act. But Americans didn’t need their president to tell them how grim the economic situation was — and could become.
Forty percent of Americans already have been affected by some sort of job problem in the past year, be it unemployment, underemployment, layoffs, reductions in pay or hours, or job losses by members of their households, according to a poll released Friday by the Pew Research Center. Fifty-six percent expect things to be worse or about the same a year from now — and they’ve got solid grounds for their pessimism.
The country could well suffer a net loss of 2 million to 3 million or more jobs this year, economists believe. And the unemployment rate, now 7.6 percent, could top 9 percent by spring of 2010.
The stimulus pull-together was a colossal game of winners and losers shaped and reshaped by the latest set of hands on the package. The fortunes of people, schools, towns and other varied interests rose and fell in blinks of time.
Ready to buy another home?
Poof — you just lost $15,000 that legislators had considered providing.
Buying a first home? You’re still in luck — the government plans to give you an $8,000 credit if you buy by the end of November.
A new car? You’ll be able to deduct the thousands in sales taxes from your income tax but not — as was initially proposed — your loan interest as well.
One day, the government proposed to pay 65 percent of the cost of health coverage for a year for jobless people who lose their workplace insurance. Days later, it was down to half. Ultimately, the subsidy zigzagged back up to 65 percent, but it expires before the end of the year.
Obama declared an end to pork-barrel politics, but legislators still managed to look out for favorite projects.
Senate Majority Leader Harry Reid, D-Nev., was quick to point out that a big chunk of the $8 billion set aside to construct high-speed rail lines could go to a
proposed Los Angeles-to-Las Vegas route. Sen. Arlen Specter, R-Pa., helped make sure $10 billion was set aside for the National Institutes of Health, a priority of his.
Long after the dust has settled from the horse trading, the government will be seen to have moved with unaccustomed speed on policies normally subjected to years of deliberation and gridlock.
Deficit hawks found their wings clipped as both parties reached for the treasury. Democrats mainly wished to spend; Republicans, mainly to cut taxes.
After last November, guess who got their way?
Democratic House Speaker Nancy Pelosi said flatly: “We won the election; we wrote the bill.”
The debate was both large and small. Negotiators considered the proper role of government — and how fast a business can depreciate its equipment.
Entering the 1930s, Americans mainly saw the national government as the entity that fought wars, ran post offices and enforced a ban on liquor. Federal spending was only 3.4 percent of the economy.
That more than tripled during the New Deal, topping 10 percent, because of the explosion of public works and other labor programs, rural modernization, bank support, and farm and industrial aid.
“It was a transformation of society in a way that hadn’t been done since the end of the Civil War and the end of slavery,” Davis said.
The government became the entity that guaranteed a minimum wage, controlled farm production, supported artists, set workplace standards, insured deposits in regulated banks and cast the first national safety net for the elderly and handicapped under Social Security.
“The whole scope of what Roosevelt was trying to do is different but the intent is clearly the same: relief and recovery during a time of economic stress,” said John Halpin, senior fellow at the Center for American Progress.
The package won by Obama offers “very important but more subterranean changes in the way the economy works,” he said.
Federal spending as a share of the economy shot above 40 percent during World War II and has hovered around 20 percent most of the years since. That share was already projected to approach 25 percent before Obama’s stimulus plan.
To be sure, there’s still considerable disagreement about how much the New Deal helped to end a depression finally crushed by the humming factories of World War II.
Even FDR’s transformation of the federal government was not universally recognized at the time for what it was. It may be years before the full measure of Obama’s efforts are taken, too.
In 1936, The Economist magazine pronounced the New Deal a “striking success” in improving conditions that existed when FDR took office three years earlier.
But what of the legacy?
What legacy?
“If the criterion be Utopian, the achievements of the New Deal appear to be small,” the editors sniffed. “The great problems of the country are hardly touched.”
___
Associated Press writer Alan Fram contributed to this report.
Copyright 2009 The Associated Press.
Obama reverses Bush effort in pollution case
Date: 2/6/2009
WASHINGTON (AP) — President Barack Obama is reversing a previous Bush administration effort on pollution, pulling back legal arguments in a lawsuit over mercury.
The case was soon to come before the Supreme Court. The Obama administration submitted papers Friday to the court asking for the appeal to be dismissed.
An appeals court last year rejected a Bush administration plan for regulating mercury emissions. It said the plan should not have included allowing utilities to purchase emission credits instead of actually reducing emissions.
Scientists fear mercury pollution leads to neurological problems in infants.
The power industry still has a separate petition challenging the appeals court ruling, which is unaffected by the Obama administration’s action.
Copyright 2009 The Associated Press.
WASHINGTON (AP) — President Barack Obama is reversing a previous Bush administration effort on pollution, pulling back legal arguments in a lawsuit over mercury.
The case was soon to come before the Supreme Court. The Obama administration submitted papers Friday to the court asking for the appeal to be dismissed.
An appeals court last year rejected a Bush administration plan for regulating mercury emissions. It said the plan should not have included allowing utilities to purchase emission credits instead of actually reducing emissions.
Scientists fear mercury pollution leads to neurological problems in infants.
The power industry still has a separate petition challenging the appeals court ruling, which is unaffected by the Obama administration’s action.
Copyright 2009 The Associated Press.
Daschle to take health post, another familiar face
Date: 11/19/2008
By KEVIN FREKING
Associated Press Writer
WASHINGTON (AP) _ Barack Obama is enlisting former Senate leader Tom Daschle as his health secretary, embracing a third Washington insider in the early stages of Cabinet-building by the president-elect who promised change. Hillary Rodham Clinton, the capital’s most famous woman for two decades, seemed ever more likely to be his secretary of state.
Clinton is deciding whether to take that post as America’s top diplomat, her associates said Wednesday. And Obama is poised to announce that his attorney general will be Eric Holder, who was the Justice Department’s No. 2 when Sen. Clinton’s husband was president.
Keeping the seating charts straight is Rahm Emanuel, Obama’s chief of staff and another veteran of the Clinton White House.
It’s still early in the building of an administration by the candidate who built his campaign on promises of change. But so far fresh faces have been few.
Daschle’s selection to head the Department of Health and Human Services — confirmed Wednesday but not yet announced — isn’t at the same level of Cabinet prestige as the top spots at the State and Justice departments. But the health post could be more important in an Obama administration than in some others, making Daschle a key player in helping steer the president-elect’s promised health care reforms
The former South Dakota senator’s return to the government will be a vindication of sorts. He was the Senate Democratic leader when he was defeated in 2004 by Republican John Thune, who persuaded voters back home that Daschle was more concerned with Washington than with them.
In fact, Daschle stayed in the capital city after his defeat, becoming a public policy adviser and member of the legislative and public policy group at the law and lobbying firm Alston & Bird. Daschle isn’t registered as a lobbyist. He advises clients on issues including health care, financial services, taxes and trade, according to the firm’s Web site.
Health care interests, including CVS Caremark, the National Association for Home Care and Hospice, Abbott Laboratories and HealthSouth, are among the firm’s lobbying clients.
Daschle’s appointment was not formally announced, but Democratic officials said the job was his barring an unforeseen problem as Obama’s team reviews his background. One area of review will include the lobbying connections of his wife, Linda Hall Daschle, who has worked mostly on behalf of airline-related companies over the years. The officials spoke on condition of anonymity because they weren’t authorized to discuss the matter publicly.
Linda Hall Daschle was acting administrator of the Federal Aviation Administration in the Clinton administration and is one of Washington’s top lobbyists. Her clients over the past year included American Airlines, Lockheed Martin and Boeing, Senate lobbying records show. Daschle’s lobbying firm said Wednesday that she would be leaving the group at the end of the year.
Tom Daschle, who will be 61 next month, was a close adviser to Obama throughout the former Illinois senator’s White House campaign. He recently wrote a book on his proposals to improve health care: “Critical: What We Can Do About The Health-Care Crisis.” He also has been working with former Senate leaders on recommendations to expand health coverage.
An array of consumer groups quickly lined up in support of Daschle as secretary of a department that oversees nearly a quarter of all federal spending.
“Someone with his stature and clout, combined with his passion and expertise in health care, is an exciting choice,” said DeAnn Friedholm, Consumers Union’s campaign director for health care reform.
Said Ron Pollack, executive director of Families USA: “His new leadership position confirms that the incoming Obama administration has made health care reform a top and early priority for action in 2009.”
Republicans sniped at what they saw as an unwelcome trend.
“Barack Obama is filling his administration with longtime Washington insiders,” said Alex Conant, spokesman for the Republican National Committee. “Since losing his Senate seat, Tom Daschle has worked for a major lobbying firm. For voters hoping to see new faces and fewer lobbyist connections in government, Daschle’s nomination will be another disappointment.”
Daschle will not only work on efforts to reduce the ranks of the uninsured, but he’ll also be tasked with improving the nation’s food and drug safety as well as overseeing safety net programs like Temporary Assistance for Needy Families.
Confirmation should be no problem.
“It’s a terrific choice,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. “I am elated. As a former member he certainly knows the Congress, he knows the Senate, he is deeply committed to health care reform.”
Daschle is a senior fellow at the Center for American Progress, a liberal think tank run by top Obama transition adviser John Podesta, a former Clinton White House chief of staff. According to his center biography, Daschle serves on the advisory boards of Intermedia Partners and the BP America Inc. external advisory council, and on the boards of CB Richard Ellis, Mascoma Corp., Prime BioSolutions, The Freedom Forum, the Mayo Clinic, the Center for American Progress, the LBJ Foundation and the National Democratic Institute for International Affairs. He is also a member of the Council of Foreign Relations.
His son, Nathan, is the executive director of the Democratic Governors Association. His daughter, Kelly, is a senior producer for AP television news in Washington.
Daschle’s strong Capitol Hill ties and knowledge of how the Health and Human Services Department works mean “it is a perfect appointment,” said former Republican Rep. John Porter, who chairs the medical research advocacy group Research!America. “He’ll do an outstanding job.”
In his book, Daschle reviewed how he believed the health care reform effort failed during the Clinton administration — an effort that was led by Sen. Clinton, who was then first lady. He bemoaned the complexity of the legislation before Congress then and the time it took to put it together.
“Everybody was in favor of health care reform. But when it came down to the details, few groups were willing to tolerate provisions that might harm them, to swallow new regulations or to sacrifice some profits for the greater good,” Daschle wrote. “Instead of seeing the broad picture, each stakeholder focused on its own narrow interests and dug in for battle. The result is that the great health care debate of the early 1990s expired with barely a whimper.”
As secretary, he will also deal with the growing budgetary woes of some of the nation’s most important health agencies.
One example: Years of funding that didn’t keep up with inflation mean the National Institutes of Health has lost 14 percent of its buying power, said Dr. Harold Varmus, NIH’s former director and now a science adviser to Obama’s campaign. That has left promising disease research without money to move forward.
Obama also announced several transition working group leaders on Wednesday, including Daschle, who will oversee the health policy working group. Others include former Environmental Protection Agency administrator Carol Browner on energy and environment, and former Clinton White House adviser Jim Steinberg and Obama campaign senior foreign policy adviser Susan Rice on national security.
___
Associated Press writers Sharon Theimer, Lauran Neergaard and Mary Clare Jalonick contributed to this report.
Copyright 2008 The Associated Press.
By KEVIN FREKING
Associated Press Writer
WASHINGTON (AP) _ Barack Obama is enlisting former Senate leader Tom Daschle as his health secretary, embracing a third Washington insider in the early stages of Cabinet-building by the president-elect who promised change. Hillary Rodham Clinton, the capital’s most famous woman for two decades, seemed ever more likely to be his secretary of state.
Clinton is deciding whether to take that post as America’s top diplomat, her associates said Wednesday. And Obama is poised to announce that his attorney general will be Eric Holder, who was the Justice Department’s No. 2 when Sen. Clinton’s husband was president.
Keeping the seating charts straight is Rahm Emanuel, Obama’s chief of staff and another veteran of the Clinton White House.
It’s still early in the building of an administration by the candidate who built his campaign on promises of change. But so far fresh faces have been few.
Daschle’s selection to head the Department of Health and Human Services — confirmed Wednesday but not yet announced — isn’t at the same level of Cabinet prestige as the top spots at the State and Justice departments. But the health post could be more important in an Obama administration than in some others, making Daschle a key player in helping steer the president-elect’s promised health care reforms
The former South Dakota senator’s return to the government will be a vindication of sorts. He was the Senate Democratic leader when he was defeated in 2004 by Republican John Thune, who persuaded voters back home that Daschle was more concerned with Washington than with them.
In fact, Daschle stayed in the capital city after his defeat, becoming a public policy adviser and member of the legislative and public policy group at the law and lobbying firm Alston & Bird. Daschle isn’t registered as a lobbyist. He advises clients on issues including health care, financial services, taxes and trade, according to the firm’s Web site.
Health care interests, including CVS Caremark, the National Association for Home Care and Hospice, Abbott Laboratories and HealthSouth, are among the firm’s lobbying clients.
Daschle’s appointment was not formally announced, but Democratic officials said the job was his barring an unforeseen problem as Obama’s team reviews his background. One area of review will include the lobbying connections of his wife, Linda Hall Daschle, who has worked mostly on behalf of airline-related companies over the years. The officials spoke on condition of anonymity because they weren’t authorized to discuss the matter publicly.
Linda Hall Daschle was acting administrator of the Federal Aviation Administration in the Clinton administration and is one of Washington’s top lobbyists. Her clients over the past year included American Airlines, Lockheed Martin and Boeing, Senate lobbying records show. Daschle’s lobbying firm said Wednesday that she would be leaving the group at the end of the year.
Tom Daschle, who will be 61 next month, was a close adviser to Obama throughout the former Illinois senator’s White House campaign. He recently wrote a book on his proposals to improve health care: “Critical: What We Can Do About The Health-Care Crisis.” He also has been working with former Senate leaders on recommendations to expand health coverage.
An array of consumer groups quickly lined up in support of Daschle as secretary of a department that oversees nearly a quarter of all federal spending.
“Someone with his stature and clout, combined with his passion and expertise in health care, is an exciting choice,” said DeAnn Friedholm, Consumers Union’s campaign director for health care reform.
Said Ron Pollack, executive director of Families USA: “His new leadership position confirms that the incoming Obama administration has made health care reform a top and early priority for action in 2009.”
Republicans sniped at what they saw as an unwelcome trend.
“Barack Obama is filling his administration with longtime Washington insiders,” said Alex Conant, spokesman for the Republican National Committee. “Since losing his Senate seat, Tom Daschle has worked for a major lobbying firm. For voters hoping to see new faces and fewer lobbyist connections in government, Daschle’s nomination will be another disappointment.”
Daschle will not only work on efforts to reduce the ranks of the uninsured, but he’ll also be tasked with improving the nation’s food and drug safety as well as overseeing safety net programs like Temporary Assistance for Needy Families.
Confirmation should be no problem.
“It’s a terrific choice,” said Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee. “I am elated. As a former member he certainly knows the Congress, he knows the Senate, he is deeply committed to health care reform.”
Daschle is a senior fellow at the Center for American Progress, a liberal think tank run by top Obama transition adviser John Podesta, a former Clinton White House chief of staff. According to his center biography, Daschle serves on the advisory boards of Intermedia Partners and the BP America Inc. external advisory council, and on the boards of CB Richard Ellis, Mascoma Corp., Prime BioSolutions, The Freedom Forum, the Mayo Clinic, the Center for American Progress, the LBJ Foundation and the National Democratic Institute for International Affairs. He is also a member of the Council of Foreign Relations.
His son, Nathan, is the executive director of the Democratic Governors Association. His daughter, Kelly, is a senior producer for AP television news in Washington.
Daschle’s strong Capitol Hill ties and knowledge of how the Health and Human Services Department works mean “it is a perfect appointment,” said former Republican Rep. John Porter, who chairs the medical research advocacy group Research!America. “He’ll do an outstanding job.”
In his book, Daschle reviewed how he believed the health care reform effort failed during the Clinton administration — an effort that was led by Sen. Clinton, who was then first lady. He bemoaned the complexity of the legislation before Congress then and the time it took to put it together.
“Everybody was in favor of health care reform. But when it came down to the details, few groups were willing to tolerate provisions that might harm them, to swallow new regulations or to sacrifice some profits for the greater good,” Daschle wrote. “Instead of seeing the broad picture, each stakeholder focused on its own narrow interests and dug in for battle. The result is that the great health care debate of the early 1990s expired with barely a whimper.”
As secretary, he will also deal with the growing budgetary woes of some of the nation’s most important health agencies.
One example: Years of funding that didn’t keep up with inflation mean the National Institutes of Health has lost 14 percent of its buying power, said Dr. Harold Varmus, NIH’s former director and now a science adviser to Obama’s campaign. That has left promising disease research without money to move forward.
Obama also announced several transition working group leaders on Wednesday, including Daschle, who will oversee the health policy working group. Others include former Environmental Protection Agency administrator Carol Browner on energy and environment, and former Clinton White House adviser Jim Steinberg and Obama campaign senior foreign policy adviser Susan Rice on national security.
___
Associated Press writers Sharon Theimer, Lauran Neergaard and Mary Clare Jalonick contributed to this report.
Copyright 2008 The Associated Press.