Orszag to leave Obama Cabinet in July

posted at 11:38 am on June 22, 2010 by Ed Morrissey

It looks as though Rahm Emanuel won’t be the first insider to leave the Obama White House after all.  Peter Orszag, Obama’s budget director, will leave in July after serving 18 months.  In that time, Orszag managed to leave a substantial legacy — as in a trillion-dollar-plus deficit and a $2.2 trillion math error:

White House budget director Peter Orszag plans to leave government in July, becoming the first member of President Barack Obama’s Cabinet to depart, administration officials said Monday. Orszag is likely to join a think thank, colleagues said.

Presidential advisers say Orszag’s two most likely successors as director of the Office of Management and Budget each served as chief economic adviser to President Bill Clinton: Laura D’Andrea Tyson of the University of California at Berkeley, named by Obama as a member of the President’s Economic Recovery Advisory Board; and Gene Sperling, now a counselor to Treasury Secretary Tim Geithner.

Tyson would provide the economic team with an effective spokesperson on television. And she’d add gender diversity at the top of the administration, especially if Christina Romer, chair of the White House Council of Economic Advisers, becomes president of the Federal Reserve Bank of San Francisco, as expected. Obama has nominated the current president, Janet Yellen, as the Fed’s vice chair.

An outsider is unlikely to get the job, the officials said. One possibility would be Robert Greenstein, director of the Center on Budget and Policy Priorities. Jack Lew, Deputy Secretary of State for Management and Resources, was also mentioned, but held the job under Clinton, and so [is] considered unlikely to want to go back.

This closes one of the worst budgeting debacles in American history.  Orszag’s tenure produced the worst budget deficit of our time, the FY2010 budget with $1.3 trillion in red ink.  The budget process has gotten so bad that Democrats didn’t even bother to produce one for FY2011, the first time in decades that a House has failed to even propose a budget.   Democrats control both chambers of Congress and the White House, and the filibuster doesn’t apply to budgets — so why are they afraid to propose one for FY2011, which starts in just over three months?  Orszag’s last budget has to be a big part of that.

Let’s also recall the signature moment in the Obama administration’s efforts on deficit reduction.  Despite the consensus that the Obama budgets would create a $9.3 trillion increase in debt over the next ten years, Orszag insisted that it would actually be $7.1 trillion.  Only after the FY2010 budget request had been out for over a month did Orszag concede that he’d made a $2.2 trillion error.  Small wonder that Orszag’s departure had been rumored for at least two months.

However, let’s not kid ourselves that Orszag’s departure will make a difference in budget problems, although it may at least bring a little more competence to the process.  The real problems with the budget come from the Democratic agenda of big-spending, big-government programs at the expense of taxpayers who will have to eventually foot the bill.  In order to fix that, we don’t need to replace Peter Orszag. We need to replace Nancy Pelosi, Harry Reid, and Barack Obama.


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think thank?

Daggett on June 22, 2010 at 11:41 AM

Orszag’s tenure produced the worst budget deficit of our time, the FY2010 budget with $1.3 trillion in red ink.

I’ll bet some of it’s hidden under that rug of his.

Doughboy on June 22, 2010 at 11:42 AM

Must have been a “Go for Broke” decision ..

wheels on June 22, 2010 at 11:42 AM

Take PBHO with you.

Seriously, when I look at that number, I mean really look at it, $9,300,000,000,000…..I want to run and hide. How in hell are we ever going to pay that back?

And to think the demorats used to bawl and whine about a $200 billion deficit under Dubya.

Bishop on June 22, 2010 at 11:42 AM

Under the bus.

Now watch this drive.

Good Lt on June 22, 2010 at 11:44 AM

Like another rat from a sinking ship.

franksalterego on June 22, 2010 at 11:47 AM

The Rats are jumping ship.

jake-the-goose on June 22, 2010 at 11:47 AM

Take a number. Next!!!

yoda on June 22, 2010 at 11:47 AM

FY2010 budget request had been out for over a month did Orszag concede that he’d made a $2.2 trillion error.

Somehow, this has to be Bush’s fault.

dirtseller on June 22, 2010 at 11:47 AM

He, along with the rest of Dear Liar’s administration, should be heading to jail.

As for whom I’d like to see as budget director: Thomas Sowell.

rbj on June 22, 2010 at 11:48 AM

And Rahmbo was doing deals with Blago. Guess who is next?

kingsjester on June 22, 2010 at 11:48 AM

What the hell would his resume say?

Looking for a position as Chief Financial Officer/Budget Director of large, multinational conglomerate.

Experience:

Oversaw the federal budget, leading to an increase in the National debt by $2.2T in less than 18 months.

BobMbx on June 22, 2010 at 11:48 AM

The budget process has gotten so bad that Democrats didn’t even bother to produce one for FY2011, the first time in decades that a House has failed to even propose a budget.

This IMO should be cause for instant dismissal of all Members of congress for dereliction of their sworn duties.

Johnnyreb on June 22, 2010 at 11:50 AM

Didn’t he inherit the deficit from the “previous administration”?

rightside on June 22, 2010 at 11:50 AM

Think Tank…More like Toilet Tank where he will be just another turd in whatever cesspool he ends up in.

Reality Checker on June 22, 2010 at 11:51 AM

Though I do not argree with her philosophically, I cannot help but think Tyson is far to smart to join this cast of clowns. Tyson is a highly accomplished, greatly respected and well liked for being strictly facts based while being affable. Surely she can see that this group is in serious disarray, would hand her unsolvable dillemas and leave it to her to justify the ridiculous. Joinig Team O at this juncture would be the all time worst carreer move imaginable.

I just don’t see it.

Archimedes on June 22, 2010 at 11:51 AM

Okay, he’s leaving, but what about his rug?

ya2daup on June 22, 2010 at 11:51 AM

Well, at least we can be assured he got a nice pension for life; paid for by we the taxpayers.

WitchDoctor on June 22, 2010 at 11:52 AM

Big discounts on carpets?

Attila (Pillage Idiot) on June 22, 2010 at 11:52 AM

Okay, he’s leaving, but what about his rug?

ya2daup on June 22, 2010 at 11:51 AM

Great minds, etc.

Attila (Pillage Idiot) on June 22, 2010 at 11:53 AM

Didn’t he inherit the deficit from the “previous administration”?

rightside on June 22, 2010 at 11:50 AM

That’s what they’ve been claiming for a year now. That they “inherited” a $1.3 trillion deficit. I guess they expect people to believe(and for the media to not challenge) the absurd notion that every year Obama and Congress run up a 1 1/2 trillion dollar deficit, almost all of it is because of Bush.

Doughboy on June 22, 2010 at 11:54 AM

Bambi’s Bouncing Betas.

Bat Chain Puller on June 22, 2010 at 11:56 AM

I’d leave, too. It’s kinda like being the morals officer at a whore house.

WannabeAnglican on June 22, 2010 at 11:58 AM

Didn’t he inherit the deficit from the “previous administration”?

rightside on June 22, 2010 at 11:50 AM

You can only inherit a deficit once. I think people have been lulled to sleep on the meaning of the word “budget”.

ButterflyDragon on June 22, 2010 at 11:59 AM

I nominate Ron Paul as next CBO Director.

txag92 on June 22, 2010 at 11:59 AM

One of the highest ranking of the new castrati to visit the underside of the big bus, just in time for Nov elections.

Mr. Pickles on June 22, 2010 at 12:01 PM

Think Tank? I’d be applying to WitSec.

di butler on June 22, 2010 at 12:02 PM

A federal government so out of control it won’t even pretend to write a budget. So out of control they don’t even know how much their policies are going to *really* cost, nor do they care.

Skandia Recluse on June 22, 2010 at 12:02 PM

Didn’t he inherit the deficit from the “previous administration”?

rightside on June 22, 2010 at 11:50 AM

That’s what they’ve been claiming for a year now. That they “inherited” a $1.3 trillion deficit. I guess they expect people to believe(and for the media to not challenge) the absurd notion that every year Obama and Congress run up a 1 1/2 trillion dollar deficit, almost all of it is because of Bush.

Doughboy on June 22, 2010 at 11:54 AM

Ironically the Obama admin did not inherit the 2009 budget from Bush. The Democrats in charge did not vote on a budget for 2009, except through continuing resolutions. It was not until after Obama was sworn in that a budget of sorts was approved by both houses. It resulted in the largest deficit this country has ever seen by a factor of 3 to 1.

Besides the continuing resolutions there was the $787 billion stimulus, the $410 billion discretionary budget, and the both halves of TARP which were voted on after October 08, mainly by Democrats. But both parties were (ir)responsible. The second installment of TARP was requested by Obama to Bush before Obama was sworn in.

Dasher on June 22, 2010 at 12:04 PM

His entire cabinet all of his czars should resign.

John the Libertarian on June 22, 2010 at 12:08 PM

The budget process has gotten so bad that Democrats didn’t even bother to produce one for FY2011, the first time in decades that a House has failed to even propose a budget.

It makes perfect political sense.

String it out until after the election, then blame Republicans for passing a huge deficit budget.

franksalterego on June 22, 2010 at 12:09 PM

Don’t let the door hit your butt on the way out, Peter.

Stepan on June 22, 2010 at 12:09 PM

SMART Power!!!!!!11111!!!!!eleventy

Except on math.. and economics….. and reading…. and…..

jukin on June 22, 2010 at 12:10 PM

Sales of previously owned homes fell unexpectedly in May. The National Association of Realtors said sales fell 2.2 percent month over month to an annual rate of 5.66 million units from an upwardly revised 5.79 million-unit pace in April.

Analysts polled by Reuters expected May sales to rise 5.5 percent to a 6.12 million-unit pace from the previously reported 5.77 million units in April. Sales were up 19.2 percent compared

angryed on June 22, 2010 at 12:11 PM

Thanks for your part in destroying the economy, jackass.

GTR640 on June 22, 2010 at 12:12 PM

The Rats are jumping ship off Orszag’s ugly head carpet.

jake-the-goose on June 22, 2010 at 11:47 AM

On second thought, would a rat even live in that thing?

Western_Civ on June 22, 2010 at 12:12 PM

Maybe they should hire someone with private sector experience … for once.

furytrader on June 22, 2010 at 12:13 PM

“However, let’s not kid ourselves that Orszag’s departure will make a difference in budget problems, although it may at least bring a little more competence to the process.”

A second grader would bring more competence to the process.

scituate_tgr on June 22, 2010 at 12:14 PM

Which bank or Wall Street financial institution will be first to hire him?
Goldman Sachs????

albill on June 22, 2010 at 12:17 PM

Everyone has only been trimming the budget around the edges. It will keep growing. Unsustainable.

Paul-Cincy on June 22, 2010 at 12:25 PM

What a shame. He had “create the first quadrillion dollar deficit” on his bucket list.

Chuck Schick on June 22, 2010 at 12:27 PM

With apologies to Chicken Little, the global financial markets are going to collapse in months, or a couple of years at the most. Then what.

Paul-Cincy on June 22, 2010 at 12:29 PM

I think he came to the realization that when the peasants storm the castle with pitchforks and torches, they generally do not string up the guy who was there last week.

cthulhu on June 22, 2010 at 12:32 PM

Here’s a good idea…let’s run the country without a budget, no one will notice or care.
If the Republican’s said “no budget this year”, the noise from the MSM would be worse then a playoff soccer game in South Africa…

right2bright on June 22, 2010 at 12:37 PM

In that time, Orszag managed to leave a substantial legacy — as in a trillion-dollar-plus deficit and a $2.2 trillion math error:

“…Rahm did , Orzag did it….McChrystal did it…” let’s focus on who the real culprit is – Barack Hussein Obama. His signature is on the budget, he signed it into law. This entire presidency is realization of Oba-mao and all he stand for, not Orzag or Rahm or some other underling. Orzag was a director of Congressional Budget office, by the way, and did ok there. Didn’t he talk about unsustainablity of deficits, and unsustainability of various government expenditures ? Obama should fire himself, not look for scapegoats.

runner on June 22, 2010 at 12:46 PM

I could never decide who was more smarmy – this arrogant b*astard, Bill Burton or the Press Secretary whose name (thank God!) I have just forgotten.

honsy on June 22, 2010 at 12:57 PM

We’re losing another ally:

Germany-US Rift Gets Deeper, As Merkel Openly Mocks Obama’s Keynesian Guidelines

The transatlantic smackdown is getting vicious, as Angela Merkel makes a point to demonstrate her refusal to follow Obama’s policies before a business audience in Berlin. As Bloomberg reports, “Chancellor Angela Merkel championed German export strength as “the right thing” for her country, spurning President Barack Obama’s call to boost private spending as both leaders prepare for Group of 20 talks. Merkel, addressing a business audience in Berlin today, said she told Obama in a phone call that cutting government debt is “absolutely important for us,” exposing a second point of contention ahead of the June 26-27 G-20 summit in Canada.” It appears Germany’s chancellor is actually prudently thinking ahead after realizing that the recent bailout of Europe has massively angered potential voters, cost her parliamentary majority, and absent damage control, her career would come to a premature end. If that means openly mocking the pinnacle of Keynesian insanity these days, Washington D.C., so be it. It is strange that our own president has yet not realized his own political career will be very short unless he follows in Merkel’s footsteps. Instead, he and the Fed will melt the market up to unprecedented highs in the months leading to the mid-term elections in hopes that this will presumably indicte just how strong the US economy is, even as fresh new millions in the GoM find themselves unemployed courtesy of some salt water content in the oily gulf. Perhaps Orszag is much smarter than people give him credit for: surely his pitchfork avoidance skills will come in very handy when the tide finally turns.

http://www.zerohedge.com/article/germany-us-rift-gets-deeper-merkel-openly-mocks-obamas-keynesian-guidelines

Cody1991 on June 22, 2010 at 1:00 PM

Thanks so much for your service, Mr. Orszag. Now trot off to a high paying job so you can enrich yourself, leaving us without a pot to pizz in.

Kissmygrits on June 22, 2010 at 1:05 PM

Take a number. Next!!!

yoda on June 22, 2010 at 11:47 AM

Hey friend – ROFLMAO!!!!!!! That queue will look like feeding time at the shark tank in Sea world!!!

huskerdiva on June 22, 2010 at 1:10 PM

Budget, schmudget. Let’s get back to some real news. Is Obama going to get to golf this weekend??? Hmmmmmmm?

capejasmine on June 22, 2010 at 1:10 PM

Orszag is likely to join a think thank, colleagues said.

Hahahahahahaha! Isn’t the FIRST requirement the ability to THINK?

GarandFan on June 22, 2010 at 1:15 PM

I’ll bet some of it’s hidden under that rug of his.
Doughboy on June 22, 2010 at 11:42 AM

Crazy Talk! That ‘do is every bit as real as Blago’s.

SoRight on June 22, 2010 at 1:18 PM

Orszag’s out. Emanuel’s out.

Time to drain the swamp.

This just opens the door for the second greatest transition evah!

pain train on June 22, 2010 at 1:25 PM

The Rats Are Going Swimming

[T]he Feral Government is increasingly being exposed as a pack of animals – cornered animals.

Recognition that The Feral Government has run the ship not aground but rather into an iceberg is rapidly spreading throughout the second-level administration people – along with firms and individuals who are in some way dependent on it.
[...]
The infamous Chicago corruption was the icing on the cake for Washington DC. Now we have a military that is openly mocking the civilian “leadership” in Washington DC, we have a MMS that was fully-aware of the fact that BP nearly blew its rig up in February – less than two months before it actually did explode and sink, yet MMS did nothing and continued to rubberstamp every permit request it received, and of course we have the crooks in the banking system that have run roughshod over cities and states with twisted and outright felonious frauds in the derivative and municipal funding markets, yet not one indictment has issued against any of these large financial institutions.

It’s all crumbing around our ears folks and the folks on the inside are bailing off before they drown with the rest of you.

Be prepared.

Rae on June 22, 2010 at 1:31 PM

Experience: Helped leftist President orchestrate an unprecedented fraud and deception against the American people by rigging estimates of the cost of socialized medicine.

Goal: Looking for position which will help re-establish credentials as a financial analyst. Any position, really.

Jaibones on June 22, 2010 at 1:34 PM

On a jealous note, here’s a guy that totally screwed up as Budget Director, will still land a bug-buck fat cat job, and then gets to go home and hit this!

Life is good inside the beltway.

pain train on June 22, 2010 at 1:37 PM

Orszag to leave Obama Cabinet in July

but his toupe will remain on prominent display in Statuary Hall.

Bugler on June 22, 2010 at 3:21 PM

What, is he going back to finish high school?

Ward Cleaver on June 22, 2010 at 4:28 PM