A year ago, President Obama warned the American people that the financial crisis was dire and required a whole new approach to government spending. Obama argued that the government must help America spend its way out of the recession, and his economists, using Keynesian multipliers, argued the “stimulus” would keep unemployment below 8.2 percent (PDF). Conservatives were skeptical, and pointed out that many of the government jobs would take a year or more to materialize, but Obama replied that we must be patient and keep spending. Conservatives pointed out that …
The President’s FY2011 budget request calls for significant increases in education spending and, as promised, the Department of Education is exempt from Obama’s so-called spending freeze. At a briefing today at the Department of Education, words such as “historic” and “bold” were used to describe the President’s budget. Secretary Duncan stated that the FY2011 budget represents “one of the largest increases” in education spending, which the president “sees as the key to our economic future”. But is more spending on education the key to economic prosperity? For that matter, is …
From the creator of Obama Budget Cuts Visualization and The National Debt Road Trip, now comes, What Does The Federal Budget Freeze Look Like? For common sense conservative solutions to our nation’s budget deficits, see:
During his State of the Union address, President Obama talked about a proposed spending freeze (underwhelming, as it is) and how such action can save money and get us out of debt. Well, the good news is that no one is buying it. Virtually no one believes that the spending freeze will do anything to have an impact on the deficit. According to Rasmussen Reports, only 9% of the population think that the proposed spending freeze will have a big impact on the deficit. Forty-two percent believe that it will …
On Thursday, the Senate passed a bill to increase the debt limit. Senate Majority Leader Harry Reid’s (D-NV) amended version of the bill passed by the House will raise the ceiling on the federal debt by $1.9 trillion. This is a huge increase from the House version, which allowed an increase of only $925 billion. Raising the debt ceiling by such a staggering amount is convenient for Congressional Leadership because they will not have to vote on another unpopular debt limit increase until after the 2010 elections. This strategy may …
In his State of the Union Address, President Obama made several commitments to fiscal responsibility in the years to come. What do they really mean though? President Obama’s proposed three-year discretionary spending freeze, excludes defense, homeland security, veterans’ and international affairs, is somewhat promising. The savings won’t be large — these programs comprise only one-eighth of the budget ($420 billion), and a freeze might save perhaps $20 billion (0.5 percent of the federal budget). Furthermore, these programs can still feast on their 19 percent hike over the past two years, …
Despite the recent focus of Congress and the White House on fiscal responsibility in federal spending, passing Democrat’s health care agenda will add significantly to, not reduce, the federal deficit. Pushing Obamacare through Congress would fly directly in the face of any rhetoric spoken in favor of reducing the deficit. The necessity for Congress to raise the debt limit has spurred a nationwide conversation on the enormity of the federal debt and the recklessness of federal spending. Several proposals have been made within Congress to create commissions to suggest legislation …
It appears that President Obama will exempt education from his so-called spending freeze. Despite the fact that Obama already doubled the Department of Education’s budget through the Omnibus and Stimulus bills last year, he plans to continue the spending binge. The Washington Post reported yesterday: Administration officials said they could not provide a direct comparison to current elementary and secondary education spending levels, but they said federal education spending would rise overall by 6.2 percent. That would apparently be the largest percentage increase since 2003, not counting the huge infusion …
Tonight in his State of the Union address, President Barack Obama is expected to propose a “freeze” on government spending. Obama’s spending “freeze” will only last three years, will not start until 2011, will only apply to a $447 billion slice of the federal government’s $3.5 trillion budget, and will not apply to any of the unspent $862 billion stimulus plan, his health care plan or the House of Representatives’ additional $156 billion stimulus plan. Despite all the loopholes, time limits and procrastination, the President should still be commended for …
