Daniel Henninger: Will They Still Love Him Tomorrow? – WSJ.com

But to an independent voter or moderate Democrat, President Everyman is starting to look like a salesman for the superstate.

via Daniel Henninger: Will They Still Love Him Tomorrow? – WSJ.com.

Check it out.

In a Savings Shocker, the Government Discovers That Paper Has Two Sides

The list of 77 spending cuts, which the White House is calling “the $100 million savings challenge,” reflects the vastness of government — and its vast inefficiency. Hundreds of millions of dollars in savings were found simply by casting around for areas to trim.

Still, the reductions barely scratch the surface. “Some of these cuts are so small they would be a rounding error of a rounding error in the federal budget,” said Brian Riedl, a federal budget expert at the conservative Heritage Foundation. They also show how “unbelievably outdated” the government is, he said.

via WSJ.

Obama’s Global Tax Raid – WSJ.com

President Obama revealed Monday that he’s half a supply-sider. If only someone could explain to him the other half. We have a tax code, the President said, “that says you should pay lower taxes if you create a job in Bangalore, India, than if you create one in Buffalo, New York.” That sounds like a great argument for lowering taxes on the guy creating jobs in Buffalo. Alas, that’s not what he has in mind.

Great article over at the WSJ explaining why the proposed tax changes of Obama are going to hurt American companies big time if imposed.

Medicare Bid System Proposal

The Obama plan would have private plans bid to offer coverage in a given geographic area; insurers would then be paid based on an average of the bids. The administration estimates that the result would be that private plans would be paid about the same as the government normally spends per participant.

from the WSJ.

This makes no sense! Under this system health insurance companies will be naturally inclined to bid above normal so as to raise the average for everyone. Another method must be introduced to encourage low bids. For example, perhaps 2/3rds of the funds could be allocated to the companies below the average (giving an incentive to bid low).

Welcome to the White House, Barack Obama – WSJ.com

That is what an administration owes the country. But it is not all it owes. There is also the matter of governing. Team Obama is about to learn that it’s easier to campaign than to govern.

In fact, they are already learning it. Last February, Congress passed a stimulus bill, adding $152 billion to the deficit. Mr. Obama called it “deficit spending” and criticized the “disdain for pay-as-you-go budgeting” in Washington. Now he forecasts trillion dollar deficits on his watch. Mr. Obama, the candidate, criticized the “careless and incompetent execution” of the Iraq war. But as president-elect, he decided to retain George W. Bush’s defense secretary and put a Bush adviser in charge of the National Security Council.

via Karl Rove: Welcome to the White House, Barack Obama – WSJ.com.

Comment

Mr. Rove makes many good points, that campaigning is about soft promises, but governing is about hard decisions. I hope, and suspect, that President Obama is up for the challenge, but recent events have poked some holes in the supposed infallability of the Obama camp.

Obama Seeks Fast Action on Plan – WSJ.com

The soon-to-be Obama administration is pushing hard to get an economic stimulous package passed quickly:

The incoming president conceded that his American Recovery and Reinvestment Plan will “certainly add to the budget deficit” — projected to be $1.2 trillion for this fiscal year. But, he said, the alternatives to bold and expensive action would be unthinkable. “Equally certain are the consequences of doing too little or nothing at all, for that will lead to an even greater deficit of jobs, income and confidence in our economy,” Mr. Obama said.

…

Mr. Obama’s team has laid out some components of his plan: a $500-per-worker tax cut; tax write-offs for businesses suffering losses in 2008 and 2009; incentives for business investment; about $100 billion for health care, to temporarily take on more of the states’ burden for Medicaid and to finance computerized medical records; billions for old-style building projects targeting roads, bridges, water systems and schools; and billions more to foster alternative energy and energy efficiency.

via Obama Seeks Fast Action on Plan – WSJ.com.

It will be interesting to see what ends up in the final draft of this bill. Any economic stimoulous must have a high expected return to make up for the increased borrowing.