Thursday, February 04, 2010


Obama released his proposed budget for 2011 on Monday. Here are just a few points from Keith Hennessey:
We can draw five important conclusions from this graph:
  1. At 8.3% of GDP, the proposed budget deficit for 2011 is still extremely high.
  2. President Obama is proposing larger budget deficits than he did last year.
  3. For 2011, the most relevant year of this proposal, the President is proposing a budget deficit that is 2.3 percentage points higher than he did last year (8.3% vs. 6.0%).
  4. Using his own numbers, the President’s proposed budget deficits will cause debt as a share of the economy to increase.
  5. Under the President’s proposal, budget deficits begin to increase as a share of the economy beginning in 2018.
This does not sound too ideal...

1 comment:

Mom said...

For years I have always thought that when governments are trying to cut budgets, that they should cut every single thing across the board by a certain percentage. That way, there couldn't be any big arguments, or long discussions. If everything was supposedly worthwhile being funded at 100%, then those same things would be equally funded at 98%, or 95% or whatever. Even though most people would rather cut their own least-favorite government expenses, doesn't this idea seem like a quick and efficient way to lower government expenses?