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Orszag, Panetta Spoke On Budget Deficits Last Night.

06 May 2010
Posted by Pete Davis

Last night, Washington deficit hawks gathered on Capitol Hill to hear OMB Director Peter Orszag and former OMB Director and current CIA Director Leon Panetta at the Committee for a Responsible Federal Budget dinner. Orszag emphasized the future deficit reduction embodied in the recently enacted health reforms, particularly the new Independent Medicare Advisory Board, and expressed confidence that the President's National Commission on Fiscal Responsibility and Reform will set the course for future deficit reduction when it reports on December 1, 2010. He acknowledged that the strength of the recovery needs to be closely monitored as stimulus spending declines, and he noted that a year ago it was hard to find anyone who expected as much GDP growth and renewed job creation as we have had since. Orszag expressed great appreciation for the support he received from Leon Panetta while working as an economist on the Council of Economic Advisers and since. 

After accepting a pair of dark sunglasses and a framed chart showing the decline of U.S. federal debt with the FY98-FY01 budget surpluses under his leadership as chair the House Budget Committee ('89-'93), as OMB Director ('93-'94), and as White House Chief of Staff ('94-'97), Mr. Panetta said he teaches his students back in California that you can govern through leadership or in reaction to crises. Until Mr. Obama took office, "we've had too much governing by crisis." "I asked my father why he came over to this country, and he said it was to provide a better life for his children." We need courageous leadership to tackle these deficits to make sure our children will be better off too. Panetta told a joke about the priest and the rabbi who went to a prizefight. The rabbi noticed one fighter crossing himself and asked the priest of that was the one he should bet on. The priest responded, "No! Pick the one with the most fight." That drew a big laugh from a crowd of budget economists no less!



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