Research Briefing

After Pledging “Change We Can Believe In,” How Obama Caused Buyers’ Remorse Just One Year In

ONE YEAR LATER: MAJORITY OF AMERICANS WOULD VOTE AGAINST OBAMA

Obama On Election Night 2008: “It’s Been A Long Time Coming … Change Has Come To America.” (President-Elect Barack Obama, Remarks On Election Night, Chicago, IL, 11/4/08)

But Now Polls Show “A Majority Of Americans Would Already Vote Against Pres. Obama If The ‘12 Elections Were Held Today.” (Reid Wilson, “Majority Would Vote Against Obama,” The National Journal’s “Hotline On Call,” 1/14/10)

WHY THE BUYERS’ REMORSE? OBAMA PLEDGED TO CHANGE CULTURE IN WASHINGTON, BUT JUST MADE IT WORSE …

Obama Criticized Bush For “Most Politicized White House In History” And Pledged White House Would No Longer Be Political Arm. “Fourth, when it comes to hiring people in my administration, the litmus test we’ll apply will not be based on party or ideology, but qualification and experience. This has been the most politicized White House in history, and the American people have suffered as a result … The days of using the White House as another arm of the Republican National Committee are over.” (Senator Barack Obama, Remarks On “Taking Our Government Back,” Manchester, NH, 6/22/07)

• But Obama Using Savings Tax As “Political Weapon” Against Republicans. “[E]vents Friday in Massachusetts showed how the White House and top Democrats aim to use the bank tax as a political weapon … A missive from Mr. Biden read, ‘Even though the banks received billions of dollars from American taxpayers to prevent the collapse of our financial system, Scott Brown doesn’t think it’s fair for us to get it back—when they’re paying out billions in bonuses with our money.’” (Peter Wallsten, “Bank Tax Is Centerpiece Of Party’s New Populism,” The Wall Street Journal, 1/16/10)

Obama Pledged To “Change The Culture In Washington So That Lobbyists And Special Interests Aren’t Driving The Process.” (Sen. Barack Obama, Second Presidential Debate, Nashville, TN, 10/7/08)

• But Obama Cut Deal With Unions, Granting Them Exemption From Health Care To “Blunt Their Protests Against” His Government-Run Health Care Bill.  “The White House on Thursday cut a deal with its closest labor allies to blunt the impact of a new tax on high-cost insurance policies -- and blunt their protests against the health reform plan. Democrats couldn’t eliminate the tax on union members’ high-cost insurance policies altogether but did put off the effective date until 2018, but only for labor agreements and state and local government workers.” (Carrie Budoff Brown, “White House Scores Key Labor Deal,” Politico, 1/14/10)

• And Lobbying Industry On Track To “Shatter Last Year’s Record $3.3 Billion Spent To Lobby Congress And The Rest Of The Federal Government.” “Washington’s influence industry is on track to shatter last year’s record $3.3 billion spent to lobby Congress and the rest of the federal government -- and that’s with a down economy and about 1,500 fewer registered lobbyists in town, according to data collected by the Center for Responsive Politics.” (Victoria McGrane, “Lobbyists On Pace For Record Year,” Politico, 12/22/09)

Obama Promised Lobbyists “Won’t Find A Job In [His] White House” But Made Several Exceptions. “President Obama promised during his campaign that lobbyists ‘won’t find a job in my White House.’ … Formalized in a recent presidential executive order, it forbids executive branch employees from working in an agency, or on a program, for which they have lobbied in the last two years. Yet in the past few days, a number of exceptions have been granted, with the administration conceding at least two waivers and that a handful of other appointees will recuse themselves from dealing with matters on which they lobbied within the two-year window.” (Kenneth P. Vogel & Mike Allen, “Obama Finds Room For Lobbyists,” Politico, 1/30/09) 

CALLED FOR MORE TRANSPARENCY, BUT KEPT HIDING BEHIND CLOSED DOORS …

Obama Pledged All Health Care Negotiations Would Be Televised On C-SPAN. “I’m going to have all the negotiations around a big table. We’ll have doctors and nurses and hospital administrators. Insurance companies, drug companies -- they’ll get a seat at the table ... But what we will do is, we’ll have the negotiations televised on C-SPAN, so that people can see who is making arguments on behalf of their constituents, and who are making arguments on behalf of the drug companies or the insurance companies.” (Sen. Barack Obama, Remarks During Town Hall Meeting, Chester, VA, 8/21/08)

• But Instead Resorted To Secret Meetings When Pushing His Agenda. “Instead, the administration’s multibillion-dollar deals with hospitals and pharmaceutical companies have been made in private, and the results were announced after the fact. Both industries promised Obama cost savings in return for an expanded base of insured patients; beyond that, the public is in the dark about details.” (Sharon Theimer, “Promises, Promises: Do Obama Deals Break Pledge?” The Associated Press, 7/21/09)

“Obama Also Promised To Require Lawmakers Seeking Money For Earmarks To Justify Their Requests In Writing 72 Hours Before They’re Voted On In Congress. That Hasn’t Happened Yet.” (Philip Elliott, “PROMISES, PROMISES: Many Obama Pledges Unkept,” The Associated Press, 1/14/10)

Obama Promised To Put Bills Online For 5 Days Before Signing Them, But Didn’t. “Nor has his pledge to post legislation online for five days before acting; he broke that pledge with his first bill, a non-emergency measure giving workers more time to bring pay discrimination lawsuits.” (Philip Elliott, “PROMISES, PROMISES: Many Obama Pledges Unkept,” The Associated Press, 1/14/10)

AND PROMISED TO BRING PEOPLE TOGETHER, BUT REJECTED REPUBLICANS CONSISTENTLY

OBAMA: “I Will Continue To Seek Common Ground In The Weeks Ahead.  If You Come To Me With A Serious Set Of Proposals, I Will Be There To Listen. My Door Is Always Open.” (President Barack Obama, Remarks To A Joint Session Of Congress On Health Care, Washington, DC, 9/9/09)

• But GOP Congressmen Were Rebuffed When They Told Obama They Want To Work With Him To Achieve Reform. “Boehner told reporters that the president has not invited House GOP leaders to the White House for meetings on healthcare reform since the end of April. Earlier this year, GOP leaders sent a letter to the president in May stating that they would like to work with the administration to find ‘common ground’ on healthcare reform. But the administration responded with a tersely worded letter indicating that they had healthcare reform under control.” (Molly Hooper, “Boehner: GOP Leaders Haven’t Met Obama For Health Talks Since April,” The Hill’s “Briefing Room” Blog, 9/9/09)

• Rep. Jim Cooper (D-TN) Confirmed House Dems Were Told Not To Work With GOP.  “Tom Daschle, Bob Dole and Howard Baker did what Congress is failing to do… And the White House released a statement praising this bipartisan leadership. In the House of Representatives, meanwhile, we are explicitly told not to work with Republicans.” (Rep. Jim Cooper, “Reconciliation Rules - Not Bipartisanship - Will Kill Health Care Reform,” The Huffington Post, 6/18/09)

Republicans Sent Letter To Obama Pushing For Tax Cuts In Order To Create Jobs. “House Republicans sent a letter to President Barack Obama today, pushing the administration to seek more business tax breaks as a way to boost the number of new jobs … House Republican leaders tout various members’ proposals that would: Give small businesses a tax deduction equal to 20% of their income; Let small businesses band together in associations to buy health insurance more cheaply; Curb civil lawsuits; Lower individual income tax rates; Expand health savings accounts, which are being squeezed in some of the current health-care reform proposals; Increase businesses’ ability to recover current losses by re-filing prior tax returns.”  (John D. McKinnon, “House Republicans Press Obama On Jobs Creation,” The Wall Street Journal’s “Washington Wire“ Blog, 10/9/09)

• But Obama’s National Economic Council Director Dismissed Republican Ideas For Job Creation.  “Responding to Republican criticism of the $787 billion economic stimulus package, White House economic adviser Lawrence Summers said Monday that the Recovery Act is having its desired effect, dismissing GOP calls for a dramatic change in course. … In a lengthy response, Mr. Summers didn’t discuss any of the Republicans’ specific proposals but said he would ‘continue to review the ideas you have suggested.’”  (Henry J. Pulizzi, “Summers To GOP’s Boehner: Recovery Act Is Working,” The Wall Street Journal, 10/12/09)

PLEDGING TO CREATE JOBS, OBAMA $787 BILLION STIMULUS FAILED TO PREVENT DOUBLE DIGIT UNEMPLOYMENT

51 Percent Of Americans Disapprove Of Obama’s Handling Of The Economy, While 42 Percent Approve. (“Few See Personal Upside To Health Care Reform,” The Pew Research Center, 1/14/10)

Because Obama Said Last February That Stimulus Would “Jolt Our Economy Back To Life.” “Obama defended the role of government in the recovery process, saying that ‘with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life.’” (Anne E. Komblut and Michael Fletcher, “Obama Says Economic Crisis Comes First,” The Washington Post, 2/10/09)

• But Unemployment Currently In Double Digits Despite White House Predictions That It Would Not Rise Above 8 Percent With Stimulus. (Christina Romer and Jared Bernstein, “The Job Impact Of The American Recovery And Reinvestment Plan,” 1/9/09; U.S. Bureau of Labor Statistics, www.bls.gov, Accessed 12/19/09)

• And Obama Using New Stimulus Job Counting Scheme, Getting Rid Of “Created Or Saved” Job Count Method After Taking “Heat And Mockery For Using The Nebulous And Non-Economic Term.” “The Obama administration has taken some heat and mockery for using the nebulous and non-economic term of jobs being ‘saved or created’ by the $787 billion stimulus program. So it’s gotten rid of it. In a … December 18, 2009 memo from … Peter Orszag, the Obama administration is changing the way stimulus jobs are counted … if the project is being funded with stimulus dollars – even if the person worked at that company or organization before and will work the same place afterwards – that’s a stimulus job.” (Jake Tapper, “Farewell ‘Saved or Created’: Obama Administration Changes The Counting Of Stimulus Jobs,” ABC News’ “Political Punch“ Blog, 1/11/10)

Despite American Disapproval, Obama Pushing Stimulus II With Billions More In Government Infrastructure Spending, Despite Its Failure To Create Jobs As Part Of Stimulus I. "Ten months into President Obama's first economic stimulus plan, a surge in spending on roads and bridges has had no effect on local unemployment and only barely helped the beleaguered construction industry, an Associated Press analysis has found. ... Obama wants a second stimulus bill from Congress that relies in part on more road and bridge spending, projects the president said are 'at the heart of our effort to accelerate job growth.'" ("What Stimulus? Road Projects Aren't Boosting Jobs Much," The Associated Press, 1/11/10)

PROMISING TO DECREASE DEFICIT AND CUT WASTE,  OBAMA’S BINGE SPENDING SETTING RECORDS

58 Percent Of Americans Disapprove Of Obama’s Handling Of The Federal Deficit, While 32 Percent Approve. (“Few See Personal Upside To Health Care Reform,” The Pew Research Center, 1/14/10)

Because Obama Pledged To Cut Deficit In Half In His First Term, But Ran Record Deficits His First Year Instead. “Obama also promised to cut the federal budget deficit by more than half in his first term. That now appears unlikely, given the spending on the stimulus and the billions of dollars spent on bank and auto company bailouts. The 2009 federal budget deficit hit a record $1.42 trillion, and the red ink in the first two months of fiscal 2010 was nearly 6 percent higher than the same period in 2009.” (Philip Elliott, “PROMISES, PROMISES: Many Obama Pledges Unkept,” The Associated Press, 1/14/10)

• And Obama’s Deficit Expected To Reach Record $1.5 Trillion In FY 2010. (White House Office Of Management And Budget, “Mid-Session Review: Fiscal Year 2010,” 8/25/09)

And Obama Pledged To Reduce Earmarks, But Signed $410 Billion Omnibus Spending Bill In March Containing Over 8,500 Earmarks Worth $7.7 Billion. “Obama signed a $410 billion spending bill Wednesday ... that includes more than 8,500 pet projects worth $7.7 billion.”; “During the presidential campaign, Obama pledged to reduce earmarks to below 1994 levels ... Despite the earmarks, Orszag said Obama will sign the bill.” (Jonathan Weisman and Greg Hitt, “Obama Outlines Plan To Curb Earmarks,” The Wall Street Journal, 3/12/09; George Stephanopoulos, “Orszag: Obama Will Sign Omnibus Despite Earmark Pledge,” ABC News’ “George’s Bottom Line“ Blog, 3/1/09)

• Following It Up With $450 Billion Omnibus Spending Bill That Increases Non-Defense Discretionary Spending By 12 Percent From Last Year. “The sweeping omnibus package ... reflects a 12 percent increase in discretionary spending over last year ...” (H.R. 3288, Roll Call Vote #949; Approved 221-202; D 221-28; R 0-174 , 12/10/09; Jennifer Bendery, “Both Parties Pile Earmarks Onto Spending Bill,” Roll Call, 12/10/09)

Despite American Disapproval, Obama’s Non-Defense Discretionary Spending To Increase By 16 Percent This Year, Highest 1-Year Increase Since Jimmy Carter In 1978. (Office Of Management And Budget, “Table 8.7--Outlays For Discretionary Programs: 1962-2014,” Accessed 12/11/09)

AND DESPITE WIDESPREAD OPPOSITION FROM AMERICAN PEOPLE, OBAMA PUSHING FORWARD WITH LIBERAL, BIG-GOVERNMENT AGENDA

55 Percent Of Americans Opposed To Obama’s Government-Run Health Care Experiment. (“Health Care Reform,” Rasmussen Reports, 1/18/10)

• 57 Percent Of Americans Say Obama’s Government Takeover Of Health Care Will Increase Costs. (“Health Care Reform,” Rasmussen Reports, 1/18/10)

• 52 Percent Of Americans Say Obama’s Government Takeover Of Health Care Will Lead To Reduced Quality Care. (“Health Care Reform,” Rasmussen Reports, 1/18/10)

Because Obama Made “A Firm Pledge” That “No Family Making Less Than $250,000 Will See Their Taxes Increase.” (Sen. Barack Obama, Remarks In Dover, NH, 9/12/08)

• But Supports Tax On Health Benefits To Pay For His Health Care Experiment That Would Fall On Middle Class. JCT Chief Of Staff Thomas Barthold: “Senator Grassley, the penalty proposed in the Chairman’s mark, is as you observed, it’s structured as a penalty excise tax, we have other penalty excise taxes in the internal revenue code ... we think that some people would be subject to the penalty excise tax when everything shakes out we would expect that some would have incomes less than $200,000 dollars.” (George Stephanopoulos, “Mandate Or Tax? Grassley V. Baucus,” ABC News’s “George’s Bottom Line” Blog, 9/22/09)

• After Already Breaking Promise Not To Raise Taxes On Middle Class By Increasing Cigarette Tax. “One of President Barack Obama’s campaign pledges on taxes went up in puffs of smoke Wednesday. The largest increase in tobacco taxes took effect despite Obama’s promise not to raise taxes of any kind on families earning under $250,000 or individuals under $200,000. This is one tax that disproportionately affects the poor, who are more likely to smoke than the rich.” (Calvin Woodward, “Promises, Promises: Obama Tax Pledge Up In Smoke,” The Associated Press, 4/1/09)

Obama Pledged His Health Care Bill Would “Slow The Growth Of Health Care Costs For Our Families ...” (President Barack Obama, Remarks To A Joint Session Of Congress On Health Care, Washington, DC, 9/9/09)

• But His Plan Will Impose New Regulations On Insurance That Will Make Premiums Even More Expensive. “A key feature of the House and Senate health bills would prevent insurance companies from denying coverage to anyone with preexisting conditions ... This well-intentioned feature would provide a strong incentive for someone who is healthy to drop his or her health insurance, saving the substantial premium costs ... As healthy individuals decline coverage in this way, insurance companies would come to have a sicker population. The higher cost of insuring that group would force insurers to raise their premiums.” (Martin Feldstein, Op-Ed, “Obamacare’s Nasty Surprise,” The Washington Post, 11/6/09)

And Obama Pledged His Health Care Bill Would Protect Care For Seniors. “The only thing this plan would eliminate is the hundreds of billions of dollars in waste and fraud, as well as unwarranted subsidies in Medicare that go to insurance companies – subsidies that do everything to pad their profits but don’t improve the care of seniors … So don’t pay attention to those scary stories about how your benefits will be cut… That will not happen on my watch.  I will protect Medicare.” (President Barack Obama, Remarks To A Joint Session Of Congress On Health Care, Washington, DC, 9/9/09)

• But Obama’s Cuts To Medicare Advantage Will Reduce Benefits For Seniors. “Mr. Obama has repeatedly said, ‘Nobody is talking about cutting Medicare benefits.’ At the same time, he wants to eliminate what he describes as ‘unwarranted subsidies’ and giveaways to private Medicare Advantage plans, which use some of the money to provide extra benefits.” (Robert Pear, “A Basis Is Seen For Some Health Plan Fears Among The Elderly,” The New York Times, 8/20/09)

Despite American Disapproval, Obama Continues To Push Liberal Agenda, Including Savings Tax That Will Hit “Every Single Consumer.” SUZE ORMAN: “Every time we get involved and we impose fees on the banks and we do certain things, what do you think the banks do? ... They pass those fees ... down to the bottom line so that every single consumer ends up paying for those fees ... Where do they renew those CDs today in order to get income to live? Not at a bank giving that’s giving them 1%. And why so little? They’re paying zero for that money ...” (MSNBC’s “Morning Joe,” 1/12/10)

• National Energy Tax Could Mean Nearly 1 Million Jobs Lost Per Year. “Overall, a cap-and-trade system that reduces annual GDP by 0.34 percent per year can be expected to reduce U.S. employment by roughly 964,900 jobs per year ...” (Andrew Chamberlain, “Who Pays For Climate Policy?,” Tax Foundation, 3/09)

• And Employee Free Choice Act That Will Increase Unemployment Rate By 1% For Every 3% Gained In Union Membership. “The precise effect on unemployment will depend on the degree to which EFCA increases union density, but for every 3 percentage points gained in union membership through card checks and mandatory arbitration, the following year’s unemployment rate is predicted to increase by 1 percentage point and job creation is predicted to fall by around 1.5 million jobs.” (Anne Layne-Farrar, “An Empirical Assessment of the Employee Free Choice Act: The Economic Implications,” SSRN.com, 3/4/09)