Obama’s Budget Comes As Government’s Ability To Manage Economy in Doubt

Democrats had hoped to launch the budget debate on Capitol Hill this week with a focus on their priorities: cleaner energy, healthcare reform, and education. Instead, they’re embroiled in a game-changing debate with Republicans over whether government – the White House, Congress, the bureaucracy, even the Federal Reserve – has what it takes to manage the financial crisis.

Between the AIG bonus debacle and prospects for $1 trillion annual deficits into the next decade, the likelihood is fading that President Obama’s first budget will survive with its key elements intact. The historic deficit numbers, in particular, make a tough sell on the budget even tougher, though some Democratic lawmakers say it’s not out of reach.

“The reality is we are going to have to make adjustments to the president’s budget if we want to keep the deficit on a downward trajectory,” said Sen. Kent Conrad (D) of North Dakota in a statement Friday, after the Congressional Budget Office (CBO) released projections showing federal red ink would total $9.4 trillion over a decade.

Sen. Charles Grassley of Iowa, the top Republican on the Senate Finance Committee, was more blunt.

“People can afford only so much government spending, even for the worthiest-sounding causes,” he said in a statement. “The White House should take a break from the heavy sales job on the budget.”

How much the government should do to try to buttress the weak financial system and spur a flagging economy is the germane question before Congress – and the news from last week may serve to point out the limits of government oversight and financial acumen to date.

Read the rest:
From the Christian Science Monitor
http://features.csmonitor.com/politic
s/2009/03/22/will-deficits-trim-
obamas-agenda/

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How Much Debt Can The Nation Afford?

AP

Congressional Republicans on Sunday predicted a doomsday scenario of crushing debt and eventual federal bankruptcy if President Barack Obama’s massive spending blueprint wins passage.

But a White House adviser dismissed the negative assessments, saying she is “incredibly confident” that the president’s policies will “do the job” for the economy.

In a TV interview, Obama himself laughed when discussing the dire state of parts of the economy — and ascribed his laughter to “gallows humor.”

White House Council of Economic Advisers chairwoman Christina Romer insisted that the nation’s flailing economy will be rebounding by 2010.

Administration officials — and the president himself — have taken a cheerier tone despite economic indicators that are anything but positive.

“I have every expectation, as do private forecasters, that we will bottom out this year and actually be growing again by the end of the year,” Romer said.

The president, in an interview that aired Sunday on CBS News’ “60 Minutes,” talked about the need to spend taxpayer money to save financial firms and the auto industry.

“I just want to say that the only thing less popular than putting money into banks is putting money into the auto industry,” Obama said with a laugh.

Interviewer Steve Kroft asked how that laughter might be perceived, given the economy’s troubles.

“There’s got to be a little gallows humor to get you through the day,” Obama said. “If you had said to us a year ago that the least of my problems would be Iraq, which is still a pretty serious problem, I don’t think anybody would have believed it.”

Read the rest:
http://www.foxnews.com/politics/20
09/03/22/gop-predicts-doomsday-
obama-budget-passed/

Related:
http://nicedeb.wordpress.com/2009/03
/23/video-60-minutes-interviewer-asks-
obama-are-you-punch-drunk/

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2 Responses to “Obama’s Budget Comes As Government’s Ability To Manage Economy in Doubt”

  1. shivendra kumar Says:

    Great person Obama’s statement is very nice……………………………….

  2. Barb Lamont Says:

    No, he is not punch-drunk. he is giddy at the thought of social change. It is no secret academics and those involved with community organization want to create social equality not by raising everyone higher, but by bringing down the wealthy. For many of them, they have a chip on their shoulder. They view wealth as evil–and this includes anyone making comfortable in the eyes of the poorest. They think by bringing down the rich, they will even the playing field so all can get ahead. The problem is, the top 3% of wealth earners shoulder 90% of the taxes (depending on the state/city) so by destroying them you destroy the economy. At that point everyone is equal and must rely upon the government. It’s one way to bring about social equality and change. While everyone will be provided for (minimal), freedom to choose is gone and the freedom to learn from the consequences of your mistakes to make your self better is also removed. For this reason socialism never produces great nations because the fact is pain and discomfort is really weakness leaving the body or society.

    http://tinyurl.com/cuer6d

    Or, Yes, if punch drunk means you have been hit more than you can rationally take so you laugh as your last-resort defense mechanism. This is a man that is in over his head. Remember, Obama has never run a business, has no prior executive experience, spent most of his life in academia and then as a community organizer where the prevailing philosophy is business has destroyed the life of those in poverty. In short he is in over his head, he is the quintessential political virgin, the 46 year-old political virgin

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