Obama unveils $3.8tn budget with massive deficits

http://www.timesofearth.com/Business/?NT=4&nid=16976 WASHINGTON - Barack Obama, the US president, has vowed to tackle the aftermath of the financial crisis in his new budget, which projects a record deficit of $1.56tn this year.
Obama said on Monday that his $3.8tn budget "reflects the serious challenges facing the country", including debt and unemployment.

"We will continue, for example, to do what it takes to create jobs. That is reflected in my budget. It is essential," he said.

Judd Gregg, the Senate Budget Committee's top Republican, said the budget, which "claims to be fiscally responsible", would in reality see "more spending, more borrowing and more taxes".

"After a year in office that has put us on a pace to double the debt by 2013, the president should have a tougher plan to address our fiscal crisis, because this budget will solve nothing," he said.

Obama has blamed his predecessor, George Bush, for the country's financial mess, and said the rise in national debt was partly due to the $787bn stimulus package pushed through Congress last year to fight the recession.

His budget, which remains subject to change by the US Congress, attempts to save money by curbing 120 projects, including a space mission to the moon.

The plans see more money invested in education, research and job creation, with $100bn earmarked for measures to help tackle unemployment, which is expected to edge towards 8.2 per cent in 2012 from 10 per cent in 2010.

The Obama administration also backed limited steps to lower costs for the massive Medicare insurance programme.

The US president said he was "fighting to reform our nation's broken health insurance system" and that his plan "includes funds to lay the groundwork for these reforms".

His plan includes so-called "demonstration" programmes aimed at finding ways to reform payments under the Medicare insurance programme for the elderly and disabled, especially for those with chronic diseases that are expensive to treat.

Obama's budget also calls for $268m to expand efforts to compare various medical treatments as well as $110m for additional investments into health information technology.

The budget proposal reflects pressure on Obama ahead of the November congressional elections to cut unprecedented growth in the US debt, after
the surprising loss of a Massachusetts Senate seat.


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• 2011

[HuckleberryGal]

We absolutely need to cut govt spending. The President's proposed budget alarms me. Our deficit spending and our debt are ruining our country. We need to increase personal responsibility, and decrease the role of the federal government. I hope everyone will make a sincere effort to learn what fiscal responsibility really means.

[Sthernguy1]

I agree, the guy is a joke. They are claiming job creation when in fact the private sector is still declining. Creating Govt jobs should not count towards job creation, which actually requires increase taxes to pay for these jobs. The real way to creat jobs is to allow the private sector the opportunity to create these jobs, which means the Govt needs to stay out of the way. I want to puke when I hear the Govt say they should "Create" jobs. They are there to promote job growth, not "Create"

[OneKlue]

Go AWAY already obuma!

[Freedan111]

I love how Obama blames Bush for everything. How much did Obama's regime add to the national debt?

[Unclesamslair]

politicians cannot fix the economy, they can hurt it, but they can't fix it.

[hindsight80]

What.?! what recovery are you talking of MR. President? What growth are you talking about? or do you mean growth of govt? Oh yah, when has increasing education funding ever worked? Investments, meaning using hard earned tax dollars (ie. the public) to fund it. This is also known as socialism; it doesn't work!! Capitalism has been around for over 200 yrs. NO other regime has worked or lasted that long. Why might that be MR. Obama..!? NOBAMA..!!

[clayguy1]

Though the Democrats controlled Congress in the last two years of the Bush administration and have controlled both the White House and Congress for a year and a half -- 41 percent of people surveyed in a recent CNN/Opinion Research Corp. poll said Republicans are responsible for the current economic problems. Twenty-eight percent blamed Democrats, and 26 percent said both parties share responsibility

[johndownunder]

End all the illegitamate wars abolish the federal reserve and start putting the rights of US Citizens first,

[RoySC1]

Do you believe in allowing your government to steal wealth from your grandchildren? It may, or may not, surprise you to find out that your Constitution contains a license for Congress to do exactly that. It is the 2nd clause, Section 8, Article I, the power of Congress to borrow money on the credit of the United States. This is where all of the peoples problems lie, and this power must be abolished if we are to really be a free people in this country. It must be done by Article V.

[ardethbaymedjai]

$3.8 billion is a LOT of money. Mr. President, please save our money, don't spend it all.

[aaron0000123]

End the fucking war... you arent even trying