Obama hits Bush on deficit and vows to curb U.S. debt
He foresees trillion-dollar deficits. He will not propose a budget until after a pork-free stimulus plan, he said.
WASHINGTON - President-elect Barack Obama yesterday criticized President Bush for "irresponsibly" doubling the federal debt, then warned that he could preside over trillion-dollar-a-year deficits for "years to come."
Huddling with his budget team, Obama told reporters that he would ban pork-barrel spending projects, known as earmarks, from his proposal to stimulate the economy. He also vowed to make the difficult choices necessary to curb runaway deficits and debt.
He said, however, that he would not propose his first federal budget until after the stimulus proposal - which itself could cost about $800 billion. And he cautioned that staggering annual deficits would continue even after that.
"At the current course and speed, a trillion-dollar deficit will be here before we even start the next budget," Obama said at his transition office.
"We're already looking at a trillion-dollar budget deficit or close to a trillion-dollar budget deficit, and . . . potentially we've got trillion-dollar deficits for years to come, even with the economic recovery that we are working on."
He also defended his choice of Democrat Leon Panetta to be director of the CIA, despite Panetta's having no direct experience in intelligence-gathering, and said he would have "plenty to say" about the Israel-Gaza fighting after he takes office in two weeks.
Obama stressed that Panetta's experience as a congressman and White House chief of staff would help him and others reverse Bush administration policies such as allowing harsh tactics that some consider torture.
"He is one of the finest public servants that we have," Obama said. "He brings extraordinary management skills, great political savvy, an impeccable record of integrity. I think what you're also going to see is a team that is committed to breaking with some of the past practices and concerns that have, I think, tarnished the image of the agencies, the intelligence agencies, as well as U.S. foreign policy."
His team also worked to repair some of the political damage caused by failing to notify Sen. Dianne Feinstein (D., Calif.), the incoming chairwoman of the Senate intelligence committee, of the nomination.
"It's always good to talk to the requisite members of Congress," Vice President-elect Joseph R. Biden Jr. told reporters on Capitol Hill. "I think it was just a mistake."
Feinstein said later that she had been contacted by both Obama and Biden.
Panetta will face sharp questions about his experience, but Democrats were not expected to give him a hard time during his confirmation hearing, and even key Republicans such as Maine Sen. Olympia J. Snowe might not lead opposition efforts. Despite his lack of experience in intelligence-gathering or analysis, Panetta has wide contacts on both sides of the aisle.
On the budget, the specter of deficits and debt dominated Obama's meeting and comments to reporters as he prepared to give a major speech tomorrow on the economy.
The federal debt nearly doubled under Bush's watch, from $5.7 trillion to $10.6 trillion. With trillion-dollar-a-year deficits added to that, the total debt burden could soar much higher. And it would come just as the government starts to face the growing burdens of medical care for aging baby boomers.
Obama said he would take steps to assure taxpayers that the added spending and tax cuts to further stimulate the economy would be well-spent.
He said he would create an "economic recovery oversight board" of administration officials and independent advisers. He also said the government would post online information about where the money was going.