I didn’t hold out much hope for the President’s proposed budget. President Obama’s budget proposal is even worse than I thought it would be. Most of his “savings” are either reducing future increases or are coming from gimmicks.
I think the GOP proposal to cut $100 Billion from the federal budget is unacceptable, solely because it is too small. As others have pointed out, cutting the budget is going to hurt. However if we don’t make relatively small but painful cuts now, the larger cuts required that will be required instead are going to be even more painful. If we never bring spending under control, then we only get to choose between hyperinflation or defaulting on the debt.
The very real pain imposed by hyperinflation or defaulting on the debt would make even the most severe budget cuts look like a walk in the park. The desperation of dealing with hyperinflation brought Adolph Hitler to power. The economic aftermath of a default on the debt would also be very ugly.
I will have more to say about the President’s budget proposal after I see an independent analysis by the Congressional Budget Office. I think their analysis will be more accurate than the analysis contained in the proposed budget.