Thursday, February 17, 2011

Roundup: Obama's budget and the deficit

There's been a lot of media and blogger coverage of President Barack Obama's budget, which is anything but the 'limit' on spending that he's trying to spin it as, and the impact on the deficit in the short and long term.

So I thought you'd like to see these two excellent posts to add to your knowledge:

1) My friend Steve Eggleston, who blogs at No Runny Eggs, says there is no deficit reduction. He spent hours comparing the budget to the CBO's "Budget and Economic Outlook" released last month, which assumes revenues and mandatory spending increase (or decrease) according to existing laws up until on-schedule expirations, and that discretionary spending increases at the rate of inflation. He said, "As the old Hertz commercials went, there's "deficit reduction", and "'not exactly' deficit reduction", and this is "not exactly"."

I hope you'll read his analysis: Obama’s FY2012 budget – worse than doing nothing.

2) Keith Hennessey is a former Assistant to the U.S. President George Bush for Economic Policy and Director of the U.S. National Economic Council. He has a blog where he posts on economic policy, among other things. His most recent entry, The long term budget problem begins now, has a startling chart, based upon Obama's own budget numbers, that should have us gathering up pitchforks and marching on Washington. But true to his style, he doesn't just give you the data, he explains what it means.

Take the time to read both of these posts and educate yourself about what your 'representatives' are doing on your behalf (and to your children, grandchildren and great grandchildren!).

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