During their campaigns for the White House and Congress, Democrats played up their ambitious plans to cool a warming planet, revive the economy and fix a broken health care system.
But House Speaker Nancy Pelosi, in her first news conference since the party’s big election victory, warned Wednesday that Democrats might have to scale back the size of their proposals as tax revenues slow and federal budget deficits soar because of a sluggish economy.
“I think it’s important for the American people to know that many of our options have been diminished because of the downturn in the economy,” Pelosi said. “We have a lot less money to draw upon.”
President-elect Barack Obama and congressional leaders are still plotting a far-reaching agenda, which includes major increases in spending. But their plans are starting to reflect the new budget math.
Last month, Pelosi was pushing a $300 billion economic stimulus plan when Congress returns for a lame-duck session Nov. 17. House Democrats have now slimmed down the proposal to the $60 billion to $100 billion range – a smaller price tag that could boost the odds President Bush would sign it. Whether Bush signs it or not, Democrats may offer another stimulus package in Congress early next year.
Obama, in his victory speech Tuesday night in Chicago, talked of the need for the government to help pay for new schools, green jobs and better health care. But he cautioned that these plans will take time. “Our climb is steep. We may not get there in one year or even in one term,” he said.
John Pitney Jr., a professor of government at Claremont McKenna College, said the most important question posed during this year’s presidential debates was by CBS’ Bob Schieffer when he asked Obama and GOP presidential nominee John McCain which of their plans they would forgo because of the heavy spending tied to the financial crisis.
Now that he’s president-elect, Obama will face the reality that most new spending will add to the nation’s growing debt. “The cupboard is bare,” Pitney said.
Pelosi suggested that the American public may have outsized notions of what Democrats can achieve even with bigger majorities in the House and Senate and control of the White House. Many voters have pinned their hopes on Obama and his promises of sweeping change, she said.
“The fact is, this president goes into office with more expectations than any president I can remember in my lifetime,” she said, comparing the emotions to John F. Kennedy’s election in 1960. “So we have to choose our priorities very carefully about what is achievable, what can be done in the best possible way. A lot of it is about time.”
SFGate
11/9/8
Magnolia Tribune
