Sunday, February 20, 2011
Obama Looks to Postpone Budgetary Reform
President Obama unveiled his budget draft to congress this week, causing new waves of frustration from both democrats and republicans alike. The budget displays a continuation of a Keynesian approach. While intentions to help stimulate the economy are good, it fails to realize the ramifications of continued large deficit spending. While it is inevitable at this juncture, the debt ceiling is rapidly approaching. Smarter spending on sectors like education, alternative energy, and infrastructure repairs and improvements is necessary. The article warns that budgets will only become tougher to make smaller as baby-boomers retire and want health care and social security. The renewal of the Bush tax cuts and the exorbitant amount of military spending on Afghanistan make this even more difficult. Political stalemate over the budget, of which the republicans made their own draft, will be a hot-button issue for the months to come.
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1 comment:
America's deficit is definitely a problem that U.S. faces and one way to help is to cut its world's highest defence spending. A nation's power can come from the military, but it must be backed up by its economy. Because many people care more about the current problems and benefits/losses, it seems that it will be difficult to make economic reforms in current political situations where people are not willing to back the reforms.
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