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Context of 'September 15, 2002: White House Economic Adviser Says Iraq Invasion Will Cost up to $200 Billion; OMB Head Says Cost Much Lower'

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Mitch Daniels, director of the Office of Management and Budget, writes in a memo to President Bush, complaining about Assistant Secretary of the Army Mike Parker’s testimony opposing the administration’s proposed budget cuts (see February 27, 2002). Daniels complains that Parker’s testimony “reads badly… on the printed page,” and that “Parker. . . is distancing [himself] actively from the administration.” [Government Executive, 9/1/2005]

Entity Tags: George W. Bush, Mitch Daniels

Timeline Tags: Hurricane Katrina

In an interview with the Wall Street Journal, Lawrence Lindsey, head of the White House’s National Economic Council, says he believes the Bush administration’s planned invasion of Iraq could cost between $100 and $200 billion. The cost, he says, will have only a modest impact on the US economy, since it will only amount to between one and two percent of the gross domestic product (GDP). “One year [of additional spending]? That’s nothing.” Mitch Daniels, director of the Office of Management and Budget, subsequently disputes the figure, saying it is “very, very high.” He suggests the total costs would run between $50 and $60 billion. [Wall Street Journal, 9/16/2002; Reuters, 9/18/2002; Washington Times, 5/13/2005] The White House press office also denies Lindsey’s prediction. As the current deputy press secretary Scott McClellan will later recall: “Lindsey’s biggest mistake wasn’t the size of the figures he chose to cite. It was citing any figures at all. Talking about the projected cost of a potential war wasn’t part of the script, especially not when the White House was in the crucial early stages of building broad public support. In fact, none of the possible, unpleasant consequences of war—casualties, economic effects, geopolitical risks, diplomatic repercussions—were part of the message. We were in campaign mode now, just as we had been when [President] Bush traveled the country leading the effort to pass tax cuts and education reforms. This first stage was all about convincing the public that the threat was serious and needed addressing without delay. Citing or discussing potential costs, financial or human, only played into the arguments our critics and opponents of war were raising. Lindsey had violated the first rule of the disciplined, on-message Bush White House: don’t make news unless you’re authorized to do so. Lindsey’s transgression could only make the war harder to sell.” As McClellan recalls, Bush is “steamed” at Lindsey’s comments. Lindsey will resign four months later. McClellan will write: “Larry, a highly regarded economist, had violated a basic principle of the Bush White House: the president doesn’t like anyone getting out in front of him. It’s his job to make the news, not anyone else’s—unless authorized as part of the script.” [McClellan, 2008, pp. 121-124]

Entity Tags: Mitch Daniels, Bush administration (43), George W. Bush, Lawrence Lindsey, Scott McClellan

Timeline Tags: Events Leading to Iraq Invasion

Mitch Daniels, Bush’s first budget director, states: “The general idea—that the business of government is not to provide services, but to make sure that they are provided—seems self-evident to me.” [Independent Weekly, 9/22/2004]

Entity Tags: Mitch Daniels

Timeline Tags: Hurricane Katrina

Scott McClellan.Scott McClellan. [Source: White House]Former White House press secretary Scott McClellan says he “passed along false information” at the behest of five top Bush administration officials—George W. Bush, Dick Cheney, Karl Rove, Lewis Libby, and Andrew Card—about the outing of CIA agent Valerie Plame Wilson during his time in the White House. McClellan is preparing to publish a book about his time in Washington, to be titled What Happened: Inside the Bush White House and What’s Wrong With Washington and available in April 2008. [Editor & Publisher, 11/20/2007] According to McClellan’s publisher Peter Osnos, McClellan doesn’t believe that Bush deliberately lied to him about Libby’s and Rove’s involvement in the leak. “He told him something that wasn’t true, but the president didn’t know it wasn’t true,” Osnos says. “The president told him what he thought to be the case.” [Bloomberg, 1/20/2007] Early in 2007, McClellan told reporters that everything he said at the time was based on information he and Bush “believed to be true at the time based on assurances that we were both given.” [Associated Press, 11/21/2007] In his book, McClellan writes: “Andy Card once remarked that he viewed the Washington media as just another ‘special interest’ that the White House had to deal with, much like the lobbyists or the trade associations. I found the remark stunning and telling.” [McClellan, 2008, pp. 155]
White House Denials; Outrage from Plame, Democrats - White House press secretary Dana Perino says it isn’t clear what McClellan is alleging, and says, “The president has not and would not ask his spokespeople to pass on false information,” adding that McClellan’s book excerpt is being taken “out of context.” Plame has a different view. “I am outraged to learn that former White House press secretary Scott McClellan confirms that he was sent out to lie to the press corps,” she says. Senator Charles Schumer (D-NY) adds, “If the Bush administration won’t even tell the truth to its official spokesman, how can the American people expect to be told the truth either?” [Bloomberg, 1/20/2007; Associated Press, 11/21/2007] Senator and presidential candidate Christopher Dodd (D-CT) calls for a Justice Department investigation into Bush’s role in the Plame outing, and for the new attorney general, Michael Mukasey, to lead the investigation. [Raw Story, 11/21/2007]
Alleged Criminal Conspiracy - Investigative reporter Robert Parry writes: “George W. Bush joined in what appears to have been a criminal cover-up to conceal the role of his White House in exposing the classified identity of covert CIA officer Valerie Plame Wilson. That is the logical conclusion one would draw from [McClellan’s book excerpt] when it is put into a mosaic with previously known evidence.” [Consortium News, 11/21/2007] Author and columnist John Nichols asks if McClellan will become the “John Dean of the Bush administration,” referring to the Nixon White House counsel who revealed the details of the crimes behind the Watergate scandal. Nichols writes: “It was Dean’s willingness to reveal the details of what [was] described as ‘a cancer’ on the Nixon presidency that served as a critical turning point in the struggle by a previous Congress to hold the 37th president to account. Now, McClellan has offered what any honest observer must recognize as the stuff of a similarly significant breakthrough.” Former Common Cause President Chellie Pingree says: “The president promised, way back in 2003, that anyone in his administration who took part in the leak of Plame’s name would be fired. He neglected to mention that, according to McClellan, he was one of those people. And needless to say, he didn’t fire himself. Instead, he fired no one, stonewalled the press and the federal prosecutor in charge of the case, and lied through his teeth.” [Nation, 1/21/2007]

Entity Tags: Peter Osnos, Public Affairs, Michael Mukasey, Scott McClellan, Robert Parry, Richard M. Nixon, Lewis (“Scooter”) Libby, Valerie Plame Wilson, Karl C. Rove, Richard (“Dick”) Cheney, John Nichols, Central Intelligence Agency, Andrew Card, Bush administration (43), Charles Schumer, Joseph C. Wilson, Christopher Dodd, George W. Bush, Dana Perino, Chellie Pingree

Timeline Tags: Events Leading to Iraq Invasion, Domestic Propaganda, Niger Uranium and Plame Outing

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