Sunday, January 31, 2010

Obama budget plan weighs in at $3.8 trillion

President Obama's proposed budget is expected to create a national deficit of $1.6 trillion in the current fiscal year, then recede to about $1.3 trillion next year. However, economists say that the new budget proposal is at a dangerously high level. The average of the deficit will be equal to about 4.5 percent of the size of the economy.

$100 billion is expected to be headed towards the nation's high level of unemployment. "The proposed $3.8 trillion budget would provide billions more to pull the country out of the Great Recession while increasing taxes on the wealthy and imposing a spending freeze on many government programs."

Although economists say that this is dangerous, it may be just what the US needs to pull us out of the recession.

1 comment:

Andrew said...

I'm willing to bet my money on what the economists predict than what Obama predicts, but that's just me. So far, I've learned that the economy won't return to it's previous status (as in the past decade) ever again, or if it does, it will take a little more than a decade for it to return to normal. This covers employment, the deficit, government programs, etc.

To be honest, I'm a little edgy with regards to Obama's proposed budget. I wasn't so much before, but with this freeze and everything I'm not too trusting.

It sounds great on paper, ideologically. I'm just concerned about it being put into practice effectively.