Saturday, November 14, 2009

Obama Contemplates Using an Emergency Brake on Spending

The Obama administration signaled to federal agencies that spending freezes and even actual cuts (not just "cuts" from the current services budget) are possible for the upcoming year. The impedus for action comes from numerous sources: expressed concerns from Asian nations, belief that record deficits imperil Democratic congressional prospects in 2010 and the effect that independent voters had in Republican governorship races in NJ and VA earlier this month. Budget director Peter Orszag indicated that such spending proposals might have to be modified with the present momentum towards recovery stalls; additionally, budget limits would need to be combined with added revenues.

Give Team Obama some credit of potentially finally getting the message of the early month elections, though I have to be somewhat of a doubting Thomas on whether Nancy Pelosi, Harry Reid, etc. would go along with such a strategy. Right now, we will call this a possible small victory for the Tea Partiers.


Blogger dprosenthal said...

Is this the same President Obama who just flushed billions of dollars down the tube with his totally ineffectual tarps and bailouts?
Now he wants to put an emergency break on spending?? Isn't that rather like taking the 'morning-after' birth control pill when you're already four months pregnant?
There is no more money to spend and our children and grandchildren will never be able to make up the deficit created by this administration. Don't the Ivies offer a course in basic economics? perhaps its time to elect people to public office who have actually held a real job and lived on a budget.

9:32 AM  

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