by Randy Shannon
The rumor mills in DC are spinning the story that White House Budget Director Peter Orszag will be resigning. This is welcome news. Orszag is an apostle of Robert Rubin, the Goldman Sachs executive and a key neo-liberal leader.
In the debate on healthcare and general government spending, Orszag has been the point man for the “deficit fetishists.” They say the cost of programs is more important than their beneficial social and economic effects, excluding of course BTW (Bank bailouts, Tax cuts for rich, and War).
The deficit fetishists are mobilizing their vast networks of “leaders” and media to orchestrate a campaign to convince the public that the government must renege on its obligations to payout the medicare and social security funds to beneficiaries.
They are already strong enough in the Senate to block extension of unemployment compensation, COBRA health subsidies, emergency funds to help hard hit state budgets, and maintaining Medicare doctor compensation.
This victory of the neo-liberals in the Senate, which consist of the Blue Dog Democrats and all the Republicans will have dire consequences for millions of Americans out of work or currently working as firemen, police, teachers, counselors, and in maintenance. It will also push the economy to the verge of another crisis, or double dip.
Obama must push these neoliberals out of his administration and bring in the reborn Keynesians, who believe that spending is the way out of the crisis. Americans need to get back to work. Over 15 million are jobless and producing no value to support the economy. Axing Orsag is a step in the right direction.