As he attempts to pass reforms to stimulate the economy, Obama faces an insurmountable foe: the rising deficit. Obama's agenda includes many sweeping reforms that could stimulate and stabilize the economy, but every debate comes back to cost. Republicans and democrats alike are wary of passing policy that would increase the burden on taxpayers- particularly with the upcoming elections. And taxpayers are thankful. However, at the same time Americans are expecting tax breaks and cuts in government spending, they are also expecting the government to do something about unemployment and inflation. Tackling the deficit means cutting government programs and raising taxes. But funding government programs means increasing the deficit and raising taxes. In his State of the Union, Obama is expected to propose bigger deficits now, with a promise for more budget discipline later.
No comments:
Post a Comment