It's like deja vu all over again. Despite the fact that we know the causes of deficits are more important than the actual deficits, despite the fact that most top economists are calling for more economic stimulus and jobs programs, the New York Times has raised the anti-deficit banner in much the same way they did the "weapons of mass destruction" rationale for invading Iraq. (And look how well that all turned out!) This, of course, from the same paper who looked away while Bush trashed the economy.

And now our anti-deficit president's going to do another symbolic tour - in Allentown, of all places. Too, too ironic!

WASHINGTON — As Democrats renew their push to create jobs, they are at odds over the timing, cost and scope of additional measures, with the White House’s concern about high budget deficits pitted against the eagerness of many in Congress to spur hiring before next year’s elections.

After months in which his focus has been on a health care overhaul and foreign policy issues, President Obama will pivot later this week to the economy, convening a White House forum on Thursday to discuss ideas for job creation and then traveling to Allentown, Pa., for his first stop on a “Main Street Tour.”

Congressional Democrats return from a holiday break intent on packaging new proposals for tax incentives and construction projects to promote employment, with the House, where every member is up for re-election next year, on a much faster track than the Senate or the White House.

While the political rationale for additional government action is clear, it is an open question whether it would have any substantial economic effect. Still, the impetus for the activity will be underscored on Friday when the government releases figures for job losses and the unemployment rate for November.

With joblessness, which stood at 10.2 percent in October, likely to remain high through 2010 even as the economy recovers, the stage is set for what could be a yearlong tussle between deficit reduction and government incentives for job creation, and between the politics of Wall Street and Main Street.

An "open question" on whether it would have "any substantial economic effect"? Gee, you'd think a New York Times reporter would read Paul Krugman at least once in a while.

Looks like we're going to see a push to open the public option. Get on the phones and let your congress creatures know you're behind it:

Sen. Ron Wyden has doubts about the scope of the public option plan announced Monday.

"I agree with Senator Reid that health reform should give Americans more options. Now, I want to work with him to ensure that all Americans can choose those options," Wyden said. "The bottom line is that the public option can’t really hold private insurers accountable if it is only competing for 10 percent of the insurance market, because private insurance companies aren’t going to change their business practices if 90 percent of their customers can’t take their business elsewhere.

"Real reform means empowering Americans to choose insurance that works well for them and their family, while rejecting plans that don’t. Including a public option is a step in the right direction, now let’s remove the firewalls in this bill that prevent Americans from choosing it," Wyden said in a statement.

[...][Jeff] Merkley, for example, said he would be unhappy if more Americans weren't able to select the so-called public option. As a member of one of the committees that wrote a health care bill, Merkley actively supported a government-option as the best way to maintain costs and provide greater choice. Merkley said in an interview Monday that he would press for any public option to be broadly available along the lines of an amendment he successfully offered in July when the bill was in committee.

Merkley's amendment is designed to give small businesses access to newly created health insurance exchanges that, in theory, breed competition by pooling the number of customers in a specific region. Merkley estimated that his amendment would allow nearly 25,000 more businesses – employing 485,000 workers – to enter the exchanges and 32 million people nationwide.
...

That amendment would increase the size of small businesses eligible for enter the national exchange that includes a public options. He also supports giving states the right expand the size of eligible businesses even more.

"What sense does it make to keep companies from going into the exchange?" he said.