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

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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  1. I think we can all agree we’d love to see the deficit reduced but so far the only two things I’ve heard is that they plan to do it by getting out of Iraq and letting tax cuts on the wealthy expire. My concern is that if we start raising taxes on the wealthy they are going to do what they were doing before the tax cuts were initiated. They will leave America and take their jobs with them. Many of them have already left in anticipation of this. The only real solution to this mess we are in is to inspire a new sense of responsibility from ALL Americans. I’m discouraged because I don’t see this happening. Once you get people used to free hand outs it’s nearly impossible to go back. It seems to me that we’re moving further in the opposite direction and, as a result, even further into debt.

  2. I sure hope that Obama accomplishes what he has his sights on. Just hearing Obama speak about the change that he has planned makes me soo nervous because he is the first black president, which already puts him under the microscope, and on top of that he talks about change constantly. I have faith in him, but sometimes just hearing him talk makes me really nervous, but then again he talks with such confidence and has a swagger that makes you have to believe what hes saying. We will soon see!

  3. President Barack Obama is the new President of USA. He is faced with new challenges and ideologies which he has to take with great deal of wisdom. Obama has some serious ideas about the economy, beyond just the enormous amount of quick loans that he made to the nation. He also has set his sights on cutting down the national deficit. The U.S. is currently about $1 trillion in debt. President Obama is looking to cut it in half – despite having just made $787 billion in quick loans. There has been an annual deficit for the last few years running, yet the Obama deficit may end up as a contradiction in terms, if he has his way. That would be worth making all those quick loans now, if it means investing in the future.

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