Projo Politics Blog

The recession and the deepening national debt ``give him a little more leverage'' than Mr. Obama's predecessors have had to demand sacrifice from all quarters, Reed said in an interview this afternoon.

The Rhode Island Democrat argued that Mr. Obama may therefore succeed in his proposal to raise hundreds of billions of dollars from the agriculture business, delinquent taxes, offshore companies, and an anti-pollution ``cap-and-trade'' system that does not exist yet.

Reed said Mr. Obama could ``very easily'' have settled for tackling the current economic crisis and pointing to the progress he has already made on that difficult challenge in ``the first 30 days'' of his presidency.

Instead, Reed said the new president has chosen simultaneously to attack the acute, short-term problems ``and also the long-term problems, like health care,'' that are the key to building American competitiveness over the long term.

Reed added that he thinks the American public understands that Mr. Obama has set goals far more ambitious than quelling the immediate financial crisis. ``They appreciate'' that the president is moving so energetically, Reed said.

In general terms, the senator endorsed the budget's proposal to seek significant cuts in the reimbursements that Medicare --- the federally-subsidized health insurance plan for old people --- pays to private insurers for certain services. Reed noted that the budget may pinch doctors, hospitals and insurers in Rhode Island, where medicine is one of the biggest industries.

Reed acknowledged that previous administrations have tapped these Medicare reimbursements to health care providers for many years, so the savings will not be easy to get.

Nevertheless, Reed said Mr. Obama's ``down-payment'' approach to rebuilding health care is businesslike and sound.