Tackling huge budget deficits and growing debt is essential for the United States to avoid a financial market crisis that would push interest rates higher and severely damage the U.S. economy, many economists have warned.
Tales from the Trail
President Barack Obama’s fiscal commission is expected to recommend changes to Social Security to help reduce the deficit when it issues its report in early December. But protests in France over pension reforms there could serve as a reality check to U. S. deficit hawks who want to raise the U.S. retirement age and make other benefit changes to the popular retirement plan.
High drama at President Barack Obama’s deficit commission meeting.
Members of the bipartisan panel were about to settle in at the Senate Budget Committee hearing room to discuss the weighty issues of performance objectives and the merit of one-year vs. two-year budgeting, when the unscheduled happened.
It’s worth about $1 million a year.
For most people that’s a lot of money. But in the context of a $3.7 trillion federal budget and a $1.5 trillion deficit, it’s small potatoes. Except in this case it’s a federal subsidy for mohair and it has more lives than an Angora cat.
Lest there be any doubt, President Barack Obama, a Democrat, blames Republicans for leaving him a huge deficit when he took office.
Sarah Palin says on her Facebook page that the healthcare overhaul passed by the U.S. House of Representatives last week should be “Dead on Arrival” in the U.S. Senate.
President Barack Obama has been threatening to crack down on government spending and on Thursday he let the budget ax fall — but gently.
He unveiled $17 billion in cuts as part of his administration’s budget for the 2010 fiscal year.
“We can no longer afford to spend as if deficits don’t matter and waste is not our problem. We can no longer afford to leave the hard choices for the next budget, the next administration — or the next generation,” Obama said.
That would be about one half of one percent of his $3.55 trillion budget.
Nearly 1.5 percent of the projected 2010 deficit.
And about $1 billion less than what President George W. Bush proposed to cut from the previous year’s budget.
By comparison, the American family with a median income of about $51,000 a year looking at a 0.5 percent budget cut would need to trim $255.
For those who are worried about the $1.75 trillion deficit that President Barack Obama projected the government would run in fiscal 2009, wait until you see what the interest on the growing U.S. debt will be.
NEW YORK – As presidential contenders John McCain and Barack Obama sparred over competing tax proposals on Tuesday, their top economic advisers debated similar issues of what changes in fiscal policy will help boost the U. S. economy.