Like the federal government, I am working on my family's budget. I'm preparing my budget in the opposite direction of the federal government. I am starting with income. I am going to proceed from the assumption that the Mrs. and I aren't going to get fired. I am factoring in three sources of income.
My wife's income.
A substantial lottery winning.
I like to call it a new era of austerity. ;-) I will, however, be able to factor into my budget that solid gold house and rocket car I've always wanted.
I figure if the Obama administration can do it, so can I. Lest we feel that I'm only listening to the conservative opposition, I have chosen to quote two sources. One of them is the Associated Press. The other is the Socialist Alternative.
I quote from the February 27th Socialist Alternative.
The CBO [Congressional Budget Office] estimates that after that the annual budget deficit will fall to 2% of GDP. But this estimate is based on extremely optimistic projections: a 4% a year average GDP growth 2011-14 and minimum growth of public spending in line with inflation. If the global slump continues beyond 2010, budget deficits would continue to soar. This would make it much more difficult for the U.S. to finance its debt on global financial markets.I know you have to make an educated guess at future GDP figures but for crying out loud, estimate low. It is a lot less painful if you estimate cautiously instead of optimistically.
I quote now a February 27th article from the Associated Press entitled "Analysis: Obama's budget goals depend on recovery".
But if recovery doesn't materialize as quickly as the White House has forecast, Obama will be unable to make good on meeting his spending targets while also keeping a pledge to try to significantly reduce the annual deficit — expected to be a staggering $1.75 trillion for 2009 — to $533 billion by the end of his term.I like this quote. It's irrefutable. There is no guarantee that the economy will recover as soon as the CBO suggests it might. The Associated Press has written this perfectly. It isn't trashing the president's budget by saying the future won't happen as the White House has predicted. The AP is saying that it might not. And they're right. It might not. None of this comes with guarantees.
This is politics and politicians at their best. Don't be fooled. They're making this up as they go along. That's both parties. You can't just blame it on one party.