The Obama Freeze
A few thoughts on the Big Budget Freeze:
1) Estimated annual savings of $25 billion over the next decade aren’t much when annual budget deficits will likely average a trillion dollars.
2) The freeze would use current spending levels, elevated to fight the recession, as a reference point. The stimulus gets locked in!
3) The 2011 budget deficit, according to the Congressional Budget Office, will be $980 billion, or 6.53 percent of GDP. With the Obama freeze, the deficit would be 6.43 percent of GDP. Rounding error!
And while I am on the topic, instead of a budget commission, I would prefer a commission on how to boost economic growth.