President Obama’s Budget Outlook Optimistically Dismal

Feb 02, 10 President Obama’s Budget Outlook Optimistically Dismal
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The New York Times has published a troubling analysis of Mr. Obama’s 2011 federal budget.  According to White House projections that are found within the budget, the deficit will not return to what are considered economically sustainable levels over the next ten years.  This leaves little room for new domestic initiatives and threatens longtime American power and prosperity.  There is little political will in Washington D.C. to deal with these potential problems.  Mr. Obama has accepted the need for massive deficit spending in order to jumpstart the economy, but many believe these spending levels are unsustainable.  Even repealing the Bush-era tax cuts will not alleviate this looming problem.

Elsewhere on Capitol Hill, Mr. Obama’s call for a “bank tax” has begun to encounter serious opposition as the banking industry has started to marshal its considerable lobbying power.  The banking and finance industry was never going to take these reforms lying down.  However, as we get further away from the days when collapse was imminent, the harder it will be to convince a cowardly Congress to enact reform.  Those in favor of the reforms, which also include some type of consumer financial protection entity, are hoping that President Obama keeps pressuring the Senate to pass reform legislation.  Otherwise, this will die a slow death as well.

My stores of optimism are critically low.  Our government is dysfunctional and gridlocked with little likelihood of actually passing anything that will actually help the American people.  I have spewed venom across party lines on this site.  I have little energy to continue doing so.  Short of another catastrophe, I am not sure of what can spur our lawmakers out of this deep malaise.

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