investing and more investing

Today Obama released the budget for the 2012 fiscal year. Plenty of writers and news outlets have analyzed the data and looked at precisely what this budget means so I do not want to focus completely on that, but I do want to list two important aspects of the budget.

  1. Throughout the 10 year projection of the budget at no point would the government spend less than it takes in.
  2. The deficit will be 10.9% of GDP which is a post World War II record.

 

Many, myself included, believe Obama missed an opportunity with this budget. David Rogers of Politico wrote, “Obama appears to have hurt his cause by not being more bold in approaching the debt problem facing the nation.”

Virtually every member of Congress made a statement about the budget but I thought Mick Mulvaney (R-SC) put it best saying that he thought it was a joke.

I thought it was a joke. It’s hard to explain how detached from reality this is, to think that the country can spend another $1.6 trillion when it doesn’t have the means. It means either you haven’t been paying attention or you don’t care. It’s absurd; [it’s] especially disturbing in light of encouraging language he used at State of the Union address.

Hopefully Republicans and Democrats will work together and make legitimate cuts that will balance the budget in the future. This will be a fight and hopefully in the end the budget will be much more fiscally responsible than the one proposed by the president today.

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2 comments so far

  1. Greg Clingan on

    Jacob,

    My father Lee Clingan served in the Indiana Senate for 8 years and the Indiana House of Rep. for 16 years. He sent House Resolutions to Conress to balance the federal budget in the 70′ and 80′.

    Thanks,

    Greg Clingan

  2. Jacob Clingan on

    Greg,

    Thank you for the comment. I just looked up some information on your Father and wow what a man. I am humbled to have the same last name as a World War II hero and a diligent public servant.


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