Matthews: So it's interesting, what's hurt the president is two things, just to get the policy problem, or the people around him, there's two concerns people have, people who read the papers and the older people especially who have the time to do that, worried about money, because they're trying to keep it.They're worried about the debt. They're worried about deficits growing. People who are in their earning years, people who are 40 and 30, 25 out there and are trying to make a buck, those people are worried about jobs.
Here's the conflict, the rub if you will. If the president goes out and spends more money to create jobs, he runs up the deficit. If he holds back and makes the deficit conscious people happy, no more jobs. So he has to decide who he wants to appeal to in the next year, right?
If you're Larry Summers and Rahm Emmanuel, and Joe Biden, they're sitting around advising the president, "Mr President, you have to make up your mind here. You have to decide if you're going with the working people, 30 or 40 years old who are trying to make a buck, or worry about the older people." If you're just talking in terms of politics. ..
Charlie Cook: Clearly there's a squeeze play going on. Do something about the economy and jobs vs don't aggravate the deficit.Don't expand the...
Matthews: Which way are they leaning now? I think they're leaning towards doing nothing.
Cook: Well, I'm not sure which is doing nothing ...
Matthews: not creating jobs by spending money
Cook: Well the thing is, if you're just looking at it politically, old people vote midterm elections and young people don't.
Matthews: Therefore, worry about the deficit.
Cook: In a midterm election if you only cared about politics that would be it
Fineman: But the complicating part of that is that you want your hardcore base to come out in a midterm election and that's why Barack Obama ..
Matthews: Older white people tend to vote Republican ...
Fineman: So that's why he's focusing on trying to get this healthcare bill passed. The problem is that as he focuses on it, older Americans are scared about cuts in Medicare which the Republicans are talking about extensively. And they're worried about the deficit.
No. And the minute they did, the Republicans would start caterwauling about tax cuts and "it's yer muneee" and some greenspan figure would sagely tell everyone that surpluses will kill the economy the whole thing would start all over again anyway. That's the big scam.
[T]here are very good odds that even if Obama exhibited iron fiscal discipline, voters wouldn’t notice. There’s a remarkable, depressing paper by Achen and Bartels that includes an analysis of voter views of the deficit in 1996 — by which time the huge deficit that Bill Clinton inherited had been drastically reduced. Here’s what voters thought they knew:Yep: after one of the biggest moves toward budget balance in history, a majority of Republicans, and a plurality of all voters, believed that deficits had increased.
Not to put too fine a point on it: if Obama succeeded in reducing the deficit, would Fox News or the Washington Times report it?