Yesterday, numbers began flying in the nation’s capital yesterday, and for once they weren’t poll numbers. President Barack Obama introduced his budget and Republicans in the House of Representatives, where they hold the majority, jumped on top of his budget from the onset. But these attacks amount to little more than politicking from the opposition.
Obama’s budget seeks funding increases in three key areas that need investment, even while we are trying to get our nation’s pocketbook in order. These areas are education, clean energy and financial regulation.
According to Politico, Obama is seeking an 11 percent increase in education spending, a 12 percent increase in energy funding and an expansion the Security and Exchange Commission’s budget by about 27 percent.
Conventional wisdom would say that balancing the budget requires massive budget cuts, especially when the national debt is close to $14 trillion.
The government has already used up its spending power. In February 2009, the $787 billion stimulus package was passed and last December the $858 billion tax deal that Republicans negotiated with the president. All of that added to the deficit a staggering $1.64 trillion — a number that’s practically beyond comprehension.
Education is important because it drives tomorrow’s economy and makes our nation more competitive.
Clean energy is a field with a lot of potential. Americans want jobs? Put stock in an industry that has room to expand.
While financial regulations are more controversial, the recession has taught us that change is needed.
These are the areas that will set us up for success. Education will create better workers, clean energy will provide job opportunities and regulations will give small businesses a chance.
While these are all incredibly important areas, we should not necessarily be married to the amount of investing the president has indicated, particularly in the regulation portion of the budget. The SEC’s 27 percent, for example, is quite a large jump when trying to balance the budget.
The plan that Obama has outlined incorporates a $1.1 trillion deficit reduction over the next decade. But the size of the national debt is somewhat alarming, so further cuts may be more than necessary.
Last year, the deficit commission panel Obama created recommended a $4 trillion reduction over the next ten years. The GOP instead has advocated for cuts galore reducing the federal government to almost a minimalist state.
What is important to take from all these numbers are the stakes of the situation. To sum it up, they are stratospheric. If we cut too much, the economy could be sent into shock and we could be looking at an even longer recovery.
If don’t come up with a responsible budget now to actually address the high deficit, will we ever?
