February 19 2010|01.27 PM UTC

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President Barack Obama Creates Commission to Curb Deficit

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Mr. Obama has put into effect an Executive Order to create a budget deficit-reduction commission – The National Commission on Fiscal Responsibility and Reform. This presidential action follows closely on the heels of the 2011 Budget proposed last week.

The commission has no later than December first of this year to propose recommendations to balance the Federal budget by 2015.

Although this proposal deadline seems distant, and the end result even further in the future, it is expected that the commission will begin its efforts immediately.

President Obama prompted the creation of this bi-partisan commission by way of an executive order on Thursday. Mr. Obama’s order specifically established that the 18 members of the commission be from both Democratic and Republican parties, mandating that no more than four of his six appointees be from the same political party. According to the order, the Senate majority and minority leaders will appoint three members, as will the Speaker of the House and the Minority Leader in the House.

The co-chairs of this commission, appointed by President Obama himself, are Republican Alan Simpson and Democrat Erskine Bowles. Erskine Bowles previously served as the head of the Small Business Administration under former President Bill Clinton, while Alan Simpson served as the Republican Whip in the Senate for a ten year term ending in 1995. The President remarked on the significance of choosing both a Democrat and a Republican to co-chair the committee, saying in a statement, “And they know how to disagree without being disagreeable, and there’s a sense of civility and a sense that there are moments where you set politics aside to do what’s right.” Clearly, bi-partisanship will play no small role in the commission’s efforts to curb the Federal deficit.

Whether the deadline of December first will avoid the non-action of past bi-partisan efforts, only time will tell. The two tasks appointed to the commission are: to propose budget changes that will improve the growth of entitlement spending and to make recommendations that will stabilize the American economy’s debt-to-GDP ratio. Mr. Obama seems focused on resolving these two budget issues, saying in a statement, “These are tough times and [the federal government] can’t keep spending like they’re not.”

Pundits have already raise questions as to the nature of work the commission will be involved in, when the fiscal year 2011 proposed federal budget has already come with an estimated $1.6 trillion deficit price (projected deficit of $1.6 trillion for 2010, anticipated to drop to $1.3 trillion by 2011).

What do you think, will this debt-curbing commission succeed in curbing the budget deficit by 2015?

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{ 4 comments… read them below or add one }

EN February 19, 2010 at 2:43 pm

I really don’t think its gonna happen by 2015.
Just to create “The National Commission on Fiscal Responsibility and Reform” is addition to our deficit.

Reply

Money Beagle February 20, 2010 at 7:01 am

I would love to see the deficit eliminated by then. It amazes me that we had a budget surplus for awhile back in the mid-90′s and now we’re over a trillion dollars a year in the red. It’s just no way to run a country. Just ask all the people that ran their lives that way and are now struggling to pick up the pieces.

I have my doubts that it can work. Partisanship is just too much the standard these days. There’s no ‘grey area’ any more. Balancing the budget will require compromise, and I’m just not sure the people we have elected right now can do that.

My thoughts, it’s a good start and a nice move that will probably look really good on the 6:30 news, but I’m skeptical about seeing any actual results.

Reply

Calvin Bacon February 24, 2010 at 1:54 pm

I laud President Obama for his initiative. However, it is not clear to me how this commission is going to affect a change. I think that most people can understand that when the government spends more than it receives that eventually there is going to be a problem. In fact, it seems to me that most people have understood this for quite some time.

The problem is to get systemic changes so that people who are responsible for revenues and spending behave differently. I just don’t see how the commission will be able to do that. I expect everyone will agree with the results, pledge to do whatever it take to right the wrongs, and then continue to do what they have been doing.

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Gilbert Switzer April 25, 2010 at 6:46 am

Social Security should be returned to the original rules of support for widows, dependent children and only, THAT IS ONLY those people who haved paid into the system. It should be set aside from all other Federal expenditures. And by the way, the Veterans administration should be limited to medical treatment of those veterans who have legitament SERVICE CONNECTED DISABILITIES. Politicans like to brag on the AMERICAN PEOPLE, well in this day and age most of them along with 12 to 20 illegials are a bunch of leaches.

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