Hillarysworld

Wednesday, August 26, 2009

White House suppressed deficit numbers since early July to pass Health Care Reform

On Friday evening, after the cut off time for the evening news cycle, the White House released new deficit projections that echoed the March estimates by the CBO and other independent analysts estimating a 10 year deficit of more than $9 trillion dollars. During his Presidential campaign, President Obama promised a new era of openness and transparency from the White House and strongly accused the previous administration of withholding information for political purposes. However, it now appears that the administration has instituted the very policy of secrecy and political manipulation that they criticized so heavily during the 2008 campaign.

In an article for the Examiner on Saturday, I alluded to the fact that the White House withheld the economic data until after the final new cycle of the work week just prior to the President's vacation in an effort to limit media access to the President and subsequent questioning over the White House deficit projections that were 28% more than their estimates released this spring. However, throughout the course of the week it now appears that there is much more to the original story.

In previous years, under both the Bush and Clinton administrations, updated deficit projections were always released by mid-July based upon economic data that was available following the second quarter. It now appears that the Obama Administration also prepared their updated deficit projections at the beginning of July. However, despite having this long term economic data, the administration throughout July and August continued to criticize CBO deficit projections as inaccurate and failing to take into account deficit reduction measures instituted by the administration. During this same period of time, the White House revved up its quest to institute a massive overhaul of our health care system that they contend is deficit neutral.

The White House had intentions of passing Health Care Reform legislation prior to the August Congressional recess, but knew that releasing deficit projections that essentially admitted the CBO was correct would jeopardize their agenda. Concerns over the budget deficit now rank 2nd, just below the Economy in recent polling data and the release of projections that show the Obama administration will nearly double the deficit would inevitably hurt attempts to overhaul the Health Care System. In addition, a July admission by the White House that their spring deficit projections were off by 28% and that the CBO was correct would have destroyed the Democrat claims that Health Care Reform was deficit neutral and that subsequent CBO analysis showing a massive deficit created by the proposals was flawed. After all, if the White House is now admitting that the non-partisan CBO deficit projections were correct, then it is reasonable to assume that CBO estimates that health care reform would create additional massive deficits, is also correct.

As a result it now appears that the White House withheld this economic data in hopes of releasing it after Health Care Reform legislation passed. Fortunately, for the American people, this plan has not quite worked out as the President and his administration planned.

In our Saturday article, I attributed the release of the Deficit report to the President's departure from Washington. However, at the time, the perplexing question remained as to why the White House would choose now to release this information; during a period in which the President's favorable ratings have turned negative and the public has turned staunchly against his proposed health care overhaul. It now appears that the White House, unclear as to whether Congress will force the passage of a Health Care Reform bill that has created public outrage, knew that they could not bury the deficit projections much longer. The White House was aware that the CBO was prepared to release their summer update, on schedule, that would reitterate the earlier deficit projections and increase public scrutiny over the proposed costs of the HCR. As a result, the White House house made the decision to release their updated deficit projections in unison with CBO reports in an effort to minimize the impact of the story. The Presidents vacation became a convenient happen chance, offering the President the opportunity to avoid direct questioning by media over the administrations failure in their spring forecasting.

At the end of the day, this administration has yet to provide the openness and transparency that was to be the hallmark of an Obama White House. The administration has operated using a methodology of timed release that has frustrated even liberal journalists such Helen Thomas. Moreover, the fact that the White House held onto this damaging deficit forecast for nearly a month and a half in an attempt to manipulate the passage of health care reform is disgusting. Additionally, the fact that we are now just learning of the projections, because the CBO summer update essentially forced the White House to release the data should make us all wonder just how forthcoming this administration is concerning their agenda. More disturbing is the reality that the President, who openly abashed the nonpartisan CBO has now admitted that they were correct; and if the CBO was right on the deficit then we should also assume that they are correct on the true costs of a health care overhaul.

The president has been less than forthcoming with the American people and is operating his White House as if he is still on the campaign trail; suppressing damaging information while engaging in a propaganda campaign to forward an agenda.

Equally as disturbing is the reality that current budget deficit projections fail to account for additional deficits created by any Health Care Reform, Education or Immigration legislation on the President's domestic agenda slate. Considering the scope of the President's agenda it is safe to assume that we are likely to see the long term deficit projections increase exponentially if the President's agenda is enacted.

http://politicallydrunk.blogspot.com/search/label/healthcare