So, it’s not a secret, the US has some debt.
Not like “oops I overdrew this month” debt, more like a $1.35 TRILLION deficit for the coming year.
The latest attempt to decrease this depressing disaster comes from the President. President Obama will seek a three-year freeze on some domestic spending.
Let both sides of the political aisle prepare their mud catapults! We’ve got the rundown…
First the basics. NYTimes gives us the 411:
President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday.
As always, the notion of decreasing the deficit and national debt through reductions in military spending is one of the most absolute Washington taboos. What possible rationale is there for that?
Nate Silver at FiveThirtyEight is givin’ the Freeze Plan a big thumbs down.
I’ll let the economists talk about the wisdom of curtailing government spending in the middle of a massive consumption deficit, but what concerns me more is the politics. Specifically, the sort of cognitive dissonance that is going to be created in the mind of the average voter…
Robert Reich says the Freeze Plan is nothing but doom and gloom for Mainstreet USA.
The bigger news is Obama is planning a three-year budget freeze on a big chunk of discretionary spending. Wall Street is delighted. But it means Main Street is in worse trouble than ever.
Mr. Obama will deliver his State of the Union address Wednesday night… Americans want to know what he stands for, where his line in the sand is, what he’ll really fight for, and where he wants to lead this nation.
Whew! 2010 wasted no time in getting politically heated!
