Liberals are not against deficit cutting

“Obama risks losing liberals with talk of cutting budget

By Zachary A. Goldfarb and Peter Wallsten, Tuesday, April 12, 10:17 PM

President Obama faces a growing rebellion on the left as he courts independent voters and Republicans with his vision for reducing the nation’s debt by cutting government spending and restraining the costs of federal health insurance programs.

Key liberal groups, which helped elect Obama in 2008, are raising concerns that he has given up political ground to Republicans, allowing the message of reducing government to trump that of creating jobs and lowering the unemployment rate.

Seizing on Friday’s deal, which would cut $38.5 billion from the fiscal 2011 budget, activists on Tuesday threatened to sit out the 2012 presidential campaign if Obama goes too far with further cuts.

“The fundamental problem in our country right now is unemployment and a jobs crisis, not a deficit crisis,” said Deepak Bhargava, executive director of the Center for Community Change, an advocacy group for the poor. “It appears the president is fighting on the wrong terrain and is conceding that the only thing we should be talking about is how to bring down the deficit.”

The clash over government spending — coming as Obama prepares to make a major speech on fiscal discipline Wednesday — is the latest example of the frayed relations between the president and a broad coalition of union and activist groups.

The dispute also underscores a key question about what will define the coming year for Obama: an attempt to defend longtime Democratic priorities over Republican objections or an effort to seek compromise and control the national debt.

The White House is responding to concerns about spending cuts by saying that the president is working to preserve important programs that help the economy grow — such as investments in education — while taking seriously the need to reduce the debt. The White House also has said that any reductions in government entitlements such as Medicare and Medicaid must be accompanied by tax increases on the rich and cuts in defense spending.

“We can take a balanced approach toward reducing our deficit in the long term while protecting the investments which will enable us to grow in the 21st century,” White House press secretary Jay Carney said Tuesday.

The White House on Tuesday dispatched David Plouffe, one of Obama’s senior advisers, to meet with progressive groups at their routine coordinating meeting at the Capital Hilton, according to people knowledgeable about the meeting.

In the past, Obama has expressed exasperation with left-leaning groups because they had not credited him with achieving some of their goals, such as making affordable health care more widely available, under difficult political circumstances.

Since the budget deal was reached Friday, the White House has sounded two competing themes. It has trumpeted the cuts as being among the largest annual spending reductions in history, while arguing that they wouldn’t undermine economic activity.

“[W]hile the level of cuts was high . . . it does not have a negative impact on our economy,” Carney said. “The highest principle the president took into this negotiation was that we must not do anything that harms our recovery.”

But many liberals on Tuesday said they feared Obama had taken steps that would damage the economy. Leading liberal columnists joined with activists to pounce on the White House, questioning why the president is embracing the image of deficit cutter rather than job creator.

Those frustrations have followed dismay on the left over Obama’s health-care law and December’s tax deal with Republicans — not to mention elements of the administration’s foreign and trade policy.

The liberal activist group MoveOn.org, whose vast membership mobilized for Obama’s election in 2008, issued an e-mail blast to members Tuesday decrying the president’s deal with the GOP last week and the prospect that he might embrace some of his deficit commission’s ideas on deficit reduction.

Justin Ruben, executive director of MoveOn, said many of its 5 million members “worked their guts out” to help elect Obama. But, after the recent string of dealmaking with the GOP and the president’s apparent willingness to compromise on entitlements, he said the base could well stay home in 2012.

“If the president and the Democrats don’t stand up to Republicans, I don’t see people coming out and doing the work that it would take to get them elected,” Ruben said. “If they came out to vote, these diehards might vote for the president, but whether they open their wallets and their hearts and their address books and hit the pavement, that’s a totally different thing.””