President vows to battle U.S. ‘deficit of opportunity’

WASHINGTON – President Barack Obama on Wednesday declared an end to the war on budget deficits and pledged instead to fight the “deficit of opportunity” for the poor and middle class.

In a lengthy speech on his economic priorities, Obama said the federal deficit is under control and no longer presents a serious threat to the economy.

“When it comes to our budget, we should not be stuck in a stale debate from two years ago or three years ago,” Obama said at a nonprofit social services center in a poor neighborhood in the capital. “A relentlessly growing deficit of opportunity is a bigger threat to our future than our rapidly shrinking fiscal deficit.”

After months of moving away from rhetoric on the need to tame the deficit, Obama completed the maneuver in an address to members of his liberal base.

On Wednesday, Obama chose to emphasize the gap between rich and poor, making a passionate – and at times personal – argument for investing in education and infrastructure, raising the minimum wage and strengthening the social safety net.

Obama has repeatedly told Republican leaders that he would discuss entitlement and tax code reform in the context of a broad budget deal that would reduce federal deficits. A senior administration official said Obama is not backing away from that offer. But there are few indications that House Speaker John Boehner, R-Ohio, will consider resuming those negotiations more than a year later.

Rather, Obama’s shift signals that the president intends to present a different argument to Congress and the American people as the next round of fiscal and budget talks play out. If Republicans want to argue with his priorities, said the adviser, the onus will be on them to explain how they would address income inequality and the inability of workers to make economic gains.