Berkeley economist Brad DeLong, always a helpful source on what Obama’s economic advisers purport to believe even when asked to say otherwise, laments about what Ezra Klein’s take on Peter Orszag’s going to CitiGroup reveals about the competence of White House Staff.
DeLong concludes the messaging Staff are just incompetent when they criticize Orszag. That may be, but I think there’s a simpler, more plausible, explanation.
First from Klein’s post:
It’s difficult to overstate how much bad will has developed between Orszag and the White House he used to serve. Some of that comes from perceived disloyalty in Orszag’s public statements — like his first New York Times column, which called for a short-term extension of all the tax cuts when the White House was arguing for the permanent extension of most of the cuts and the expiration of the cuts for the rich — but this move [to Citigroup], which many in the administration consider politically problematic and personally distasteful, added considerably to the anger.
And DeLong responds:
Look: Peter Orszag believes–as do I–that the most basic principles of good governance mandate that the American government have a long-term plan in place to match its long-term projected expenditures with its long-term projected revenues. Peter Orszag believes–as do I–that requiring that every policy initiative be paid-for in the long-term so that it does not increase the projected debt, say, ten years out into the future is the minimum low bar that policy should be able to clear.
Barack Obama has not taken Peter Orszag’s advice: he has not proposed only initiatives that are paid-for in the long-term. He has not pledged to veto bills that raise the projected debt ten years hence.
Let’s try a different theory. Since a supposedly temporary two-year extension of all the tax cuts is exactly what the White House accepted and is now forcefully defending, doesn’t it make more sense to think Orszag was a helpful stalking horse for an idea the White House had already embraced months ago?
After all, as Jane Hamsher recognized, and DeLong apparently agreed, there’s no reason to believe Obama would have wanted to run in 2012 on raising anyone’s taxes, even the rich.
If that was the strategy from the beginning, then having Obama consistently claiming he didn’t want tax cuts for the richest 2 percent to continue but had no choice but to accept them would have been how this White House would have spun it. And they would have scotched any negotiating posture — remember Schumer’s $1 million threshold? — that might have put that core part of any deal in jeopardy.
So if that’s what happened, then it’s perfectly consistent to have the supposedly off-message White House Staff telling trusting reporters how upset they are at Peter Orszag for being disloyal and undermining the President’s goals to end the high-end tax cuts. And who better than Ezra Klein to run with this? And how convenient for the WH to be able to blame Orszag for alienating much of the Democratic Party.
I didn’t used to be this cynical, but come on guys. All the arguments about “where was Obama’s veto threat” apply equally against Orszag’s NYT claims that Obama can/will threaten to veto further extensions in 2012, in the face of a more hostile Congress and his own election on the line.
Orszag’s NYT op-eds also came complete with a signature Obama tactic, a seemingly gratuitous, dishonest slam at progressives for, he claimed, being unwilling to discuss Social Security’s “insolvency.” [More about Orszag here.]
And the icing on the cake is reading reports uncritically telling us the White House is, gosh darn it, really upset that Peter Orszag would embarrass the Administration by walking through those million dollar revolving doors at CitiGroup.
Good grief. You’d think this Administration had a stringent policy of not hiring people from Wall Street or allowing those steeped in its ethics from running the economy or defining the limits of financial “reform” and the purpose of HAMP. Please.
John Chandley



37 Comments

Obama definitely is doing what he wants and pushing the Dem Congress to do it too. Although, most of them stand where he does on the issues. I just find it very uncomfortable that Obama has bargained behind the scenes in two major pieces of legislation, essentially leaving congress standing there with pants down.
Obama isn’t going to run in 2012 on raising taxes on the rich for one thing because he still thinks he’s going to get some of that citizens united pie.
He’s going to get nothing. They hate him and his only friends are gone. I won’t be upset by it.
I know! He will run on ending the wars. /s He will have brought our troops home and hired all military contractors to replace them.
Won’t that be great? He will be lauded as the man that ended the wars/not.
Was there any official reports on his meeting with the CEO’s?
The thing that kills me the about this is how the Democrats in congress just stand around and let this shit happen. It’s one thing that the president is a blue dog shapeshifter, but there’s also a bunch of people here that also have a stake in the history. Even Franken is in this mess. That’s what seems so slimy about the whole thing.
I expect it from the president. What I can’t abide is 200+ people on the D side in congress that has no instinct of history or self preservation. Astounding.
For a man who ran on change and hope, he sure changed to the wrong and left me with no hope at all.
Ha! He changed alright! He also left us all in hopes of a better administration.
They want it to happen, they encourage it to happen. The most “liberal” Democrat of 2010 is to the right of Newt Gingrich in 1993.
Its the old okie dokie.
Dems are playing the Washington Generals against the corporate owned Harlem Globetrotters.
Absolutely. These schmucks all patronize the same prostitutes, eat at the same restaurants, send their kids to the same schools. “Disputes” between Dems and Reps are merely country club intramural volleyball.
They must think we’re pretty stupid, but we have a Scarecrow to explain it all to us. And he has no Brain!
Thanks for writing this. I spent a lot of time today saying “yes, I’ve heard about Ezra’s column, no I haven’t read it because if I did I’d just get pissed and I’ve got too much to do.”
Appreciate you doing the honors.
Other than his 11-dimensional chess partner Yggie, is there a bigger useful idiot to the establishment neo-libs than Ezra Klein.
Why he even plays a radical liberal on Corporate TV?
After all, as Jane Hamsher recognized, and DeLong apparently agreed, there’s no reason to believe Obama would have wanted to run in 2012 on raising anyone’s taxes, even the rich.
Facts argue otherwise.
Will Ezra EVAR get anything right?
Jeezus, he co-opted the “It Get’s Better” video project to self-aggrandize.
Ezra is the perfect soulmate for Obama; “It’s all about ME!”
Jane take a break we need you get Christy to run things find a guy or a girl go somewhere warm and sunny why if you burn out its not good for the Lake. I say this as someone who love reading your stuff.
But Mike Royko no don’t burn out take a vacation.
Now if you want to check out low profile blues bars in chi town I can be your back up if not wing girl.
Trust me I say your safe and I’m sober not a one will get to you.
Ezra has been wrong lately, not that I’d say he’s been lying. It could stem from breathing the Beltway Vapors. Seriously. Too long having his reality created by Alternate Out-of-Touch Reality-Makers: it may mist off the Potomac by now.
Wow, great theory.
Perhaps someone could explain to me how DeLong knows what Orszag believes. It’s possible to know what Orszag SAYS he believes, but it’s impossible to know what he actually believes. That used to be Journalism 101. Back when there were journalists, of course.
I think it is a genuine problem of something in DC that changes people. 40 years ago Ezra would be talking about how the government has an obligation to help X group – that is where the culture was.
I don’t know how we change that, its bigger than a few politicians.
And do you want to guess the former employer of the current director of OMB? The same Citibank that is employing Orz. Whocoudanode.
I also don’t see how Ezra’s article about how he knows Orzag is a good man and couldn’t be dishonest is any different from Broder’s whine about how he knew Caspar Weinberger – he goes to the supermarket like everybody else! – and that is why he shouldn’t go to jail for Iran-Contra.
Has that SadlyNo Ezra parody puppet come to life?
And KO welcomes Ezra to his show again tonight.
Buy a clue, Keith.
Do you suppose it’s really possible that Obama does not know that these people are laughing at him behind his back (and sometimes to his face) and gleefully plotting his demise (politically)?
Hi Jon,
Excellent post. Thanks.
In judging Orszag, please remember that he was Robert Rubin’s co-founder, with Robert Rubin, of the Hamilton project, which at it’s 2006 opening had Senator Barak Obama as its keynote speaker.
Orszag is considered to be one of the world’s experts on pension systems, but very much a protoge of Robert Rubin, a close buddy of Pete Peterson — here is a list of Rubin’s “personal relations” from Muckety.com:
* Robert E. Rubin personal relations:
* Peter R. Orszag – protege
* James S. Rubin – son
* Philip Rubin – son
I suspect that he had more than a small part in the appointment of the Catfood Commission, but I have no direct evidence for that.
Oops! Somehow, Rubin’s wife got deleted from my quoting of that list. Here is the corrected version:
* Robert E. Rubin personal relations:
* Peter R. Orszag – protege
* James S. Rubin – son
* Judith O. Rubin – spouse
* Philip Rubin – son.
I suspect that the list is in alphabetical order, starting with last name first, i.e., I doubt that Orszag is closer to Rubin than are Rubin’s wife and sons.
Just a drive by . . . SC.
Yer diary looked good at first glance . . .
Nice.
*G*
Thanks, hoss.
*G*
Oh, my pony’s have horns on their heads . . .
*G*
Hey you . . . best to ya . . .
Obama ain’t running in ’123.
He’s done, kaput, fini, adios, gone.
How do ya feel about HRC N a General?
(yeah, I’m back to that one)
Keith, Rachel = Veal Pen.
When will they ever learn, when will they everrrrrrrr learn.
LeSigh.
“Why he even plays a radical liberal on Corporate TV?”
why did this line just shake me right through. When did we start letting the machine define who we are. NOT as in, where we work or where we can live, but as in, our very identities. Why do we allow corporate media consultants in the entertainment industry to define who a “radical liberal” is. You can take that basic premise in any direction you want. Its also at the heart of the whole “serious centrist” garbage. We need to fucking explode, and we need to do it soon, our there wont be anything left of “us”.
Thanks John!
Obama has been on a first name basis with ex-Citigroup bigwig Robert “Bob” Rubin since at least 2006.
“Bob and I have had a running debate now for about year, about how do we in fact deal with the losers…”
at about 6 mins in:
http://www.youtube.com/watch?v=P-5Y74FrDCc
So an ex-Obama official taking a job at Citigroup? Inconceivable! /s
I’d bet Obama wrote his recommendation letter to Citigroup. As for “dealing with the losers”, lies and kabuki theatre seem to be the economic development plan.
“How do ya feel about HRC …”
She is still out begging for money to pay off 2008 debt. There is zero chance that she can raise the money for another run.
I don’t recall exactly, whether it was Palin or another Republican operative mocking an Obama campaign event for featuring styrofoam decorative columns…at the time, I thought how petty.
Seems like a dead-on zinger now.
In retrospect, the high-solemnity of the inauguration should have been a tip-off of things to come. The piped-in music, “soaring” rhetoric and a blubbering Jesse Jackson…it all looks pretty f’n ridiculous now, don’t it?
That comment is so telling. It’s unadulterated arrogance. Rubin et al. masters of the universe and Obama’s their boy.
DeLong worked on the Clinton economic team, knows many of today’s team personally, and talks to them; and Christy Romer is at Berkeley. And so Delong often provides good insights on what [they tell him] they are thinking/arguing inside.
Obama’s “concern” with how to deal with the “losers” in the “Global Economy” is amazing, considering that he seems to be half-asleep …
Yepper, ole Barack went right out and appealed to the “losers”, convincing them that he stood for “change” … chump change.
Well, Capt, I sure do hope that this here video does, eventually get the audience it most thoroughly deserves. Thank you, Capt, for putting it “up”.
DW