The Federal Budget: A Brief Review

President Obama presented his budget for 2011 on Feb. 1. A staggering $3.8 trillion figure was allocated toward the government's fiscal plans.

The budget has a dual focus. It is intended to stimulate the economy and limit the federal deficit. But stimulating the economy is a delicate practice and is especially difficult when injecting funds to grow jobs in America.

President Obama's proposed budget includes several notable items.
There is a $50 billion blueprint for the creation of more jobs. There's a proposal to increase Pell Grants, to alleviate the toll of education on college students.

The budget directs over $700 million towards the purchase and installation of 1,000 full body scanners at airports and the use of clean air technology. And of course, there are tax cuts.

Although the budget seems to reinforce America's hopes for jobs, tax cuts, and a safer environment, where is this money going to come from… projected income? I would hope that the government is planning such economic moves based on hard evidence, rather than predictions for a brighter future.

Economic forecasts for 2011 indicate that the unemployment rate should drop to about 9.2 percent and the nation's GDP should increase by about 4 percent.

Under last year's biting economic conditions, the unemployment rate soared to above 10 percent and still hovers around 9.7 percent, according to The Wall Street Journal.
In terms of the government's nearly infinite spending, President Barack Obama announced, "We simply cannot continue to spend as if deficits don't have consequences, as if waste doesn't matter."

Taking into account the $12 trillion debt that the country currently owes, the President's statement resonates with the American people, but his claims do not solve existing problems. Citizens already know from experience that banking on such claims and predictions rarely works out as planned.

Families across the nation have been hurt by the economic conditions, as millions fear job loss and damage to their standards of living. Americans have become more conscious of excess spending and have begun to save whatever money they can to ensure their futures. The Recession has been a wake-up call, indicating to many that the dollar is not indestructible and requires scrupulous management.

The dual focus of stimulating the economy and controlling the national deficit is optimal, but it must be asked—can both be successfully accomplished at the same time?