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Sunday, February 22, 2009

Cutting the deficit

After clicking on the news link on the Google homepage, I found an article mentioning that President Obama wants to cut the budget deficit in half by the end of his term in 2013. The goal is to cut the current deficit of $1.3 trillion to $533 billion. I found this to be an interesting statement when considering the actions that have already been taken under Obama’s presidency. Thus far, the newspapers have been filled with articles on stimulus packages and bailouts. In addition, 17,000 more troops were scheduled to be sent off to Afghanistan. Spending has only increased and with the recession, government revenues are only falling. Surely the current recession will be over before Obama’s term ends, but until it is; I would only expect to see an increasing deficit.
It’s good to see that Obama wants to decrease the deficit. Perhaps he knows that government borrowing crowds out private investment, perhaps lowering the budget deficit is just good politics. Regardless, accomplishing his goal will take some major adjustments to the spending habits of congress.

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