On Monday, President Obama introduced the administration’s new $3.8 trillion budget plan. This unfathomable figure becomes even more daunting when you take a closer look at the projected deficit caused by this budget: $1.267 trillion.
Even if math isn’t your thing, it is easy to see a figure this large in our struggling economy is just plain dangerous. If this budget plan passes without alteration, we are on another road to financial meltdown.
President Obama has once again succeeded in using his rhetoric to advance a seemingly bipartisan solution to the economic problems of our day. Yet, words can be deceiving, and there is no covering up the monstrous size and the long-term implications of this proposal.
First off, Obama is not really reaching out to the Republicans in Congress, he is only creating the illusion of concession to make a statement. Republican solidarity in Congress is hurting his approval ratings, as he has consistently promised the American people that he would work with both sides. Furthermore, the fact that his arch nemesis, FOX News, is quickly becoming the most trusted news network on television is making him rather anxious.
But while the President is talking the talk with promises of small business support, spending freezes and tax breaks, the money is going to the wrong places, and will not solve the problems of today. In reality, Obama is digging us deeper into a hole, and only making cuts in the least consequential areas. As Sen. Lamar Alexander pointed out in a recent interview, the government should not borrow from deficit spending programs like the Troubled Asset Relief Program (TARP). Programs like TARP are “troubled” on their own already, and do not need to be further burdened. This is just common sense.
As seen by the failure of the stimulus package, increased spending has shown no signs of improving the economy. Rep. Paul Ryan of Wisconsin reports that “Democrats, since they took over Congress, increased domestic spending by $1.4 trillion.”
This reckless spending has had little, if any, positive impact on the economy. Unemployment still hovers at 10 percent, and the housing market is still floundering. The GDP may have increased, but nothing seems to have actually “changed” since Obama took office. And the so-called “freeze” on discretionary spending really only affects one-eighth of the budget. This may be a good start, but has no potential for any realistic impact. Unnecessary spending will still ensue without any mercy for the rising deficit.
And to make up for excessive spending, Obama’s solution is raising taxes on the very people and businesses that keep our economy alive. As a hardworking employee in a small family business, I have personally seen the affects of government regulation, and the benefits of real tax cuts. Harmful federal and state regulations have triggered a staggering economy mainly because it impossible for employers to afford employees. His budget plan would raise taxes by almost $1 trillion for 3.2 million small businesses and the upper-income families that create our jobs. This additional burden will only do further harm to the job market, and make the search for a job after graduation even more difficult. Placing the tax burden on our potential employers will only hinder employment.
Vast government handouts have never helped our nation rebound from fiscal crisis. Obama needs to realize the potential of employers to save our economy. Americans want careers, not short-term, government-sponsored jobs. The reckless spending implied by this budget plan will only make the situation worse.
President Obama’s proposal is not a new solution at all. It is the stimulus package all over again. And this one will be worse than the last.