Can President Obama Cut the Deficit By 12% Each Year?

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obamaeconxThe plan is to cut the deficit from $1.3 trillion dollars, 9.2% of the economy, to $533 billion dollars, 3% of the economy, during President Obama’s (first 😀 ) tenure. That sounds pretty ambitious, but an aggressive approach is what we need right now.  After all, aggressively spending money is what got us to this point so we need to budget aggressively to recover – not so different from what each of us would do with our personal finances.

This discussion is ahead of the curve since we really don’t know how President Obama plans to do this specifically. Here are some general plans:

  • Slow/stop home foreclosures
  • Encourage more lending
  • Better regulate the nation’s financial system
  • Invest in what America needs
  • Cut out what America does not need
  • Restore fiscal discipline

My takeaway from all that is simple: stop throwing money at everything and bring back some responsibility.  I know the latest stimulus plan is viewed as more wasteful spending by many, but even the POTUS doesn’t think the stimulus bill alone will fix what ails us.  He acknowledges that the way we have been spending money in the past is why we are paying dearly in the present.

We always have to keep in mind, this is a mess he inherited.  Yes, he may have played a role in past legislature that backed us into a corner, but his vote was one of many at the time.

I’m all for regulating Washington DC.  There is so much waste going on in our nation’s capital that it would make your head spin.  Congressmen making money on and off the books, contracts won for far too much money and government workers who simply show up to work are all realities; I’ve seen the last two personally.

Can someone remind me again what Bush was doing to help stimulate the economy?  President Obama has been harshly criticized – he is probably partly to blame – but he is at least trying to do something to help the economy.  I don’t understand why people complain about his actions, but then say they are going to save a stimulus check or use it to pay bills.  I would think we all want to be part of the solution at this point and not part of the problem.

Like I said earlier, this discussion is taking place before we know specifically what the President plans to do with the budget, but that shouldn’t stop us from arguing, I mean talking about it!

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