U.S. Budget Goes Bust Amid Deficit Reduction
The economy is in a tailspin, contracting at a 6.2 percent pace in the last three months of 2008: the worst performance in decades. The White House announced that it will take a 36-percent stake in Citigroup in the hope of keeping it afloat amid huge toxic debt and a continuing crisis of confidence. These are ominous reminders that the nation has critical decisions to make in order to turn things around. President Obama appears to have ditched the Bush administration’s Washington-style budget sleight-of-hand with the attempt to honestly portray what the government will actually spend. In the mind of President Obama, his truth in budgeting approach is designed to help Americans make informed choices. That is exactly what Americans have been doing without government so far. We react to the failures of government, business and even ourselves. Even so, President Obama reveals that $3.6 trillion is to be spent in 2010, with almost $1.2 trillion of it borrowed.
What is President Obama’s message to taxpayers and Capitol Hill? We need to quit magical thinking. All the thing the nation’s needs will not pay for themselves. Laying the groundwork for a strong economy in the future isn’t without cost. Does America want to kick fossil fuels out for a greener future? How will America reform how we pay for health care, so that the nation can get more for our dollars and reduce the ranks of the uninsured? How do we keep Medicare solvent with the swelling rank of the disabled and a steadily growing retirement community? The nation needs a larger federal contribution for our schools. How will the nation repair and maintain roads, bridges, airports and mass transit? Now there is talk of building a modern energy grid. The president is counting on the economy to be growing by 2011. He plans on halving the deficit by 2013 through taxation of the upper class and perhaps through restricting corporate taxes loopholes and offshore banking. Keeping a deficit in the same place is difficult enough with the proposed spending required to save the nation and its’ current power and financial structure. That deficit reduction remains to be seen. Along the way, the nation must discontinue the practice of borrowing, spending and passing the bill to our kids to deal with. We just haven’t figured out how to do that yet.
You can argue that money isn’t everything, but you can’t argue that fact when you are in government and money is everything. The President has a tough job. He needs your prayers. ~ E. Manning