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Jewish World Review Feb. 21, 2011 / 17 Adar I, 5771 Obama team uses slippery words to tout budget By Byron York http://www.JewishWorldReview.com | "This budget stands for the principle that we have to get our fiscal house in order," OMB director Jack Lew told the House Budget Committee this week.  "We've put a plan forward that would get us to primary balance by the middle of the decade." You might ask yourself: What does that mean?  Was Lew saying that the federal budget, which today is running a $1.65 trillion deficit, will be balanced in just a few years?  Many listeners might take Lew's words to mean just that.  But check again. Lew did not say the budget will be "balanced."  He said it will reach something called "primary balance."  It turns out there's a huge difference. A balanced budget means government revenues and spending are roughly equal.  But a budget in "primary balance," according to the Obama administration, occurs when revenues and spending are equal -- excluding all the interest the government pays on its enormous debt. President Obama projects the budget will reach "primary balance" in 2017, when government revenues and spending will both be about $4 trillion.  Problem is, the White House predicts interest on the debt that year will be $627 billion.  So even though the budget will be in "primary balance," there will in fact be a deficit of $627 billion.  "Primary balance" is no balance at all. By 2021, the White House projects interest payments will reach $844 billion, which is a lot of money to ignore. "Primary balance is a figment of our imagination," freshman Republican Rep. Mick Mulvaney told Lew at the House hearing Tuesday.  "Only in Washington could you run a deficit and claim it's balanced and somehow use the word ‘balance.'  Mr. Lew, you couldn't do that anywhere else. They'd laugh you out of the room." Where did the White House get the idea of "primary balance"?  It wasn't a widely-used term until late 2009, when the influential liberal think tank Center for American Progress published a budget plan touting the idea. "We proposed that the president and Congress adopt an intermediate goal somewhere between where we are now and full balance," says Michael Linden, the Center's associate director for tax and budget policy.  "It was something that could be accomplished in a faster time frame." There's nothing wrong with that; the distance between a $1.65 trillion deficit and a balanced budget is very great, so getting even halfway there would be real progress.  But Republicans strongly objected to the use of the word "balance." "I believe any American that heard that would believe that this budget balances," Sen. Jeff Sessions, ranking Republican on the Senate Budget Committee, said when Lew appeared before the Senate. "It doesn't come close to doing so." For his part, Linden concedes that "primary balance" is "not full balance and nobody should pretend that it is full balance."  But he argues the term is still useful.  The point at which the government can pay for all the services and benefits it provides, and is running a deficit only for its interest payments, Linden says, is also the point at which the debt as a share of gross domestic product begins to stabilize.* That, too, would be a big improvement over today.  But on Capitol Hill, Lew took things a step further, claiming that would mean "we stop adding to the debt."  And President Obama himself, in his budget news conference Tuesday, said that by the middle of this decade, "We will not be adding more to the national debt." Just for the record: The government cannot run budget deficits of, say, $627 billion, or $844 billion, and not add to the national debt.  Interest payments have to be made.  Obama's words were so egregiously wrong that the watchdog website PolitiFact quickly labeled them false. "We think the president's statement is likely to mislead a lot of Americans about what his budget would do," PolitiFact wrote. The whole line of argument left Sessions amazed. "We add more under [the president's] plan to the national debt every single year," Sessions said Wednesday.  "So how could this possibly be a position in which you will not be adding more to the debt?  What world are we living in?" The budget debate is just beginning, but the administration's attempt to sell the idea of "primary balance," plus the claim that in just a few years we'll no longer be adding to the debt, left Republicans questioning the president's good faith.  Now, it will take a significant White House course correction to change GOP minds. Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here. Comment on Byron York's column by clicking here. Previously: 02/15/11 Myth and memory: The battle over Reagan's legacy 02/07/11 Invoking Reagan, Palin says ‘this is a time for choosing again’ 01/31/11 With each passing year, Reagan grows larger in the American political imagination 01/24/11 House GOP begins long drive to dismantle Obamacare 01/17/11 GOP gears up again to strip NPR of federal funds 01/10/11 To House GOP, illegal immigration is a jobs issue 01/03/11 Obamacare mess is legacy of Dems' moment of power 12/27/10 Smiling Dems will soon cry ‘Washington is broken’ 12/20/10 Dems are earmark junkies but GOP goes straight 12/13/10 Needed: A ‘more presidential’ Palin 12/06/10 With Dems in a funk, Obama charts a new course 11/29/10 Obama's poll numbers point to his defeat in 2012 11/22/10 Holder ignored risks of civilian terror trials 11/16/10 Dems love facts and science --- except when they don't 11/08/10 Obama, new GOP lawmakers are on collision course 11/01/10 New GOP star on track to defeat Dem legend Russ Feingold 10/26/10 If Dems lose, Obama will blame everyone but himself 10/19/10 Profligate Congress should read its own bills 10/13/10 Why Big Labor couldn't match Glenn Beck's rally 10/11/10 Trash-talking Democrat faces defeat in Florida 10/05/10 A GOP unknown in striking distance of Barney Frank 09/28/10 Administration inflates green-jobs numbers 09/20/10 In Delaware, GOP should target Dems, not O'Donnell 09/14/10 GOP Insiders Wary of Landslide Predictions 08/31/10 For Obamacare supporters, judgment day approaches 08/23/10 Obama has himself to blame for Muslim problem 08/17/10 Cut spending without cutting services? Start here 08/17/10 For Michelle Obama, extravagance dents popularity 08/09/10 Obama's zealous civil rights enforcer gets busy 08/02/10 A battle between Left and Right --- inside the GOP 07/26/10 GOP spoiling for fight over Berwick appointment 07/20/10 How long will the public tolerate Afghan war? 07/12/10 NASA's Muslim outreach: Al Jazeera told first 07/02/10 Legal complaint against Gore is detailed, credible 06/28/10 Obama and Dems heading for electoral disaster 06/21/10 Who told Obama drilling is ‘absolutely safe’? 06/14/10 Billions for ‘green jobs,’ whatever they are 06/07/10 Sestak a no-go for any job. So what was the deal? 05/31/10 As economic worries worsen, White House puts on the glitz 05/25/10 GOP dilemma: Fight Kagan, or go along? 05/11/10 Enforcing nation's immigration laws would be a bargain 05/03/10 How Obama could lose Arizona immigration battle 04/27/10 What's behind the anti-Tea Party hate narrative? 04/20/10 As government expands, beware the post-office example 04/19/10 Who wins in 2010? Good luck reading tea leaves 04/12/10 GOP Obamacare strategy: Try repeal, then cut 04/05/10 Obamacare was mainly aimed at redistributing wealth 03/30/10 Message to Dems: People still don't like Obamacare 03/23/10 The coming consequences of Obamacare 03/16/10 Marco Rubio and the Republicans who love him 03/15/10 GOP hopes town halls take health care off table 03/08/10 Dems turn risky health vote into manhood contest 03/01/10 Why Obama defies the public on health care 02/22/10 South Carolina mulls 2012: Romney? Palin? Huck? 02/16/10 GOP winning war over Miranda rights for terrorists 02/09/10 Who are the 300 terrorists held in U.S. prisons? 02/02/10 Is Obama dissatisfied with being president? 01/19/10 The Republican dilemma: Good Michael or Bad Michael? 01/12/10 Now the lawmakers are figuring out what they didn't know 01/05/10 GOP deserves blame for Democratic excesses 12/29/09 Dems' dreams of a blue West begin to turn red 12/22/09 Why Dems push health care, even if it kills them 11/30/09 Dems' kamikaze mission: Health care by New Year's 11/23/09 Why it's a mistake to bring Gitmo prisoners here 11/16/09 Dems' slick fix: $210 billion of fiscal restraint 11/10/09 Obama can't be community organizer for the world 11/02/09 At key moment, Obama leaves health post unfilled 10/26/09 ‘Fierce urgency' for jobs, not health care’ 10/12/09 Facts hurt Jennings in youth sex controversy 10/05/09 Amid terror threat, Dems chip away at Patriot Act 09/27/09 In Afghanistan, let U.S. troops be warriors 09/21/09 Under fire, Democrats abandon ACORN in drove 09/14/09 Dems stifle Republican health care plans 09/08/09 For Dems, a serious Charlie Rangel problem 09/07/09 Obama's speech: Wrong setting for a sales job 09/01/09 What happened to the antiwar movement? 08/24/09 Why Dems may jam through health care plan 08/17/09 GOP thinks the unthinkable: Victory in 2010 08/10/09 The empty words of a journalist turned flack 08/03/09 Probe finds new clues in AmeriCorps IG scandal 07/27/09 Obamacare haunted by unkept promises of stimulus 07/20/09 Why the GOP failed the Sotomayor test 07/13/09 What the GOPers will ask Sotomayor 06/29/09 Serious questions remain for Mark Sanford 06/22/09 How GOPers can crack the AmeriCorps scandal 06/16/09 Worried about Sotomayor? Consider Andre Davis 06/08/09 Can Mitch Daniels save the GOP? 06/01/09 When the Dems derailed a Latino nominee 05/26/09 Why the GOP will defeat Obama on healthcare 05/19/09 Rosy report can't hide stimulus problems 05/12/09 The Reagan legacy is the man himself 05/05/09 Sen. Specter, meet your new friends 04/27/09 Ted Olson: ‘Torture' probes will never end 04/20/09 Who's Laughing at the ‘Axis of Evil’ today? 04/14/09 Congress needs Google to track stimulus money 04/06/09 Beyond AIG: A bill to let Big Government set your salary 03/30/09 On Spending and the Deficit, McCain Was Right 03/24/09 It's Obama's crisis now 03/17/09: Geithner-Obama economics: A joke that's not funny © 2009, NEA

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