Editor, Times-Union: To hear official Washington tell it, Indiana Gov. Mitch Daniels is the new “serious” Republican presidential contender. He’s praised as a “fiscal conservative”. Mentioned only in passing is a key fact that – in a saner world – would disqualify him from holding any government office: Mitch Daniels was President George W. Bush’s original budget director in 2001. In other words, the “fiscal conservative” Daniels oversaw the federal budget as it was making its dive from a $236 billion surplus – then on a trajectory to eliminate the entire federal debt in a decade – to a $400 billion deficit by the time he left in June 2003. It wasn't as if Daniels and other figures in the Bush administration were not warned about the need for continued fiscal discipline. Giving him his due, President Bill Clinton, in his farewell address to the nation on Jan. 18, 2001, noted how his administration had managed to turn what were then record deficits – left over by Republicans Ronald Reagan and George H.W. Bush – into record surpluses. “We have been able to pay down $600 billion of our national debt - on track to be debt-free by the end of the decade for the first time since 1835,” Clinton said, adding that a debt-free America would enjoy many economic benefits including lower interest rates and the capacity to address “big challenges,” such as the retirement costs from the Baby Boomers. However, with Daniels at the budget helm, the Bush administration quickly veered off course and onto the rocks of a worsening debt crisis. Much of the expected surplus was squandered with huge tax cuts, leaving the nation vulnerable to unexpected economic and policy shocks like those that followed the 9/11 attacks. In the 10 years since Clinton left office, the projected $2 trillion surplus by 2011 gave way to today’s $10 trillion debt, what the Washington Post recently called “a $12 trillion detour.” As of fiscal 2011, the Congressional Research Service reported that the Iraq War had cost $806 billion, with estimates putting the eventual total cost of the conflict at more than $1 trillion. Daniels was a key figure in the Bush administration, helping design policies and pressing publicly for their enactment. Daniels also was ready to stoop to accounting trickery to make Bush’s budgets seem less irresponsible. But after more than a year at his position, he still frequently makes deceptive claims often without challenge. Daniels may not recognize the difference from his previous job [as a pharmaceutical executive], but we must. It is unacceptable to market our nation’s economic policies like Prozac. Yet, Daniels continues to lead a charmed life as far as official Washington is concerned. From Fox News to MSNBC, he is praised as a “fiscal conservative who would uplift the debate over the nation’s debt crisis.” He is widely praised for his work as Indiana’s governor and -although his title as Bush’s budget director is mentioned in passing - his work on some of the most reckless budgets in U.S. history escapes scrutiny. There’s also been some coverage of his off-again-on-again marriage and whether his wife wants him to seek the White House. But Daniels stands today as the latest Republicrat hailed for his wisdom and courage regarding budget issues. Oh, yes, don’t forget the Indiana toll road debacle. Tom Metzger Warsaw, via e-mail
