Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Tuesday, February 15, 2011

Obamas Budget

http://www.foxnews.com/politics/2011/02/15/republicans-say-obama-budget-plan/

With the recent release of Obama's budget for the next couple years the government has been restless. The Republicans are already saying that the budget isn't serious. Saying that the Budget wouldn't really decrease the rising debt that our country is acquiring. If we don't stop the increasing debt to our country our economy will plummet back into a recession. This would also be known as a double dip recession. This would happen if the budget didn't work because the value of the american dollar would go down. This would create inflation to compensate for the decrease in value of the dollar. This would create major issues for the world in whole if we didn't fix the debt of our country. To fix the debt we have created we would have to decrease government spending which would have a negative and positive affect on the economy. But we would also have to increase taxes which every american who pays taxes would disagree with this proposal. That is why the President comes up with a Budget plan to limit and decrease government spending over a set period of time.

6 comments:

kern said...

Can you explain more specifically how it would have "a negative and positive affect on the economy?" Do you think overall it would be positive or negative in the short run.

Brandeezy said...

In response to "we would also have to increase taxes" that is not true. The whole purpose of the budget cuts is to reduce the amount of money we spend, but to still make as much (Through non-government buisnesses). This would decrease the debt without ever touching taxes. As far as republicans not being happy with the cuts, if Obama would have cut even more would they support him then? Probably not. But what Obama and his administration must decide is how much federal spending can be cut without having serious consequences. Although he is judged negativally it was his economic plan that allowed for this recovery.

Smith said...

I agree with Kern, please explain the positive and negative impacts.

Matthew said...

This budget makes many Americans go YAY we are cutting debt, when in fact we are just shrinking the amount that we are adding to it. Half of the proposed cuts wont happen and even if they do, something will pop up to take the funds. It always does, I see this more of a publicity stunt trying to gain votes for the next election. This is a political game playing on the mind of trouble Americans looking to save money in a bad economy.

meggan said...

The budget is not a seriouos issue. Our country is going to still be in debit whether or not we change our countries budget. we should not have to tax the people anymore than we already are. we should decrease the amount of money that the government is spending, on uneccessary items.

-Meggan S.

sarah said...

In response to Meggan S., you said "our country is going to still be in [debt] whether or not we change our country's budget" if the government decreased their amount of spending wouldn't that help our economy? Which would eventually also help our national debt? And how could we decrease the amount of money that the government is spending?